HB 1374 Summary

• Authorizes municipal legislative bodies to impose a food and beverage excise tax by ordinance, with a maximum rate of 1% imposed in 0.25% increments on gross retail income from food and beverage transactions.

• Tax applies to food or beverages furnished, prepared, or served for consumption at a location provided by a retail merchant within the municipality, but does not apply to transactions exempt from state sales tax.

• Does not apply to consolidated cities, municipalities already imposing a food and beverage tax, or municipalities receiving county food and beverage tax revenue.

• Municipal revenue from the tax can be used for property tax relief, debt service, capital projects, operating revenue, pension liabilities, or other purposes determined by the legislative body.

• Takes effect July 1, 2012.