HB 1071 Summary

• Authorizes municipalities to impose a municipal food and beverage tax by ordinance, not to exceed 1% of gross retail income from food and beverage transactions.

• Tax applies to food or beverage furnished, prepared, or served for consumption at the merchant's location in the municipality, excluding 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.

• Tax revenue may be used for property tax reduction, debt service, capital projects, operating revenue, or property tax relief to taxpayers.

• Municipalities may pledge food and beverage tax revenues to issue bonds or enter leases with terms up to 25 years; effective July 1, 2012.