IN HB1326

Authorizes seven municipalities (Angola, Danville, Elkhart, Goshen, Greenwood, Rockville, and Rushville) to adopt municipal food and beverage taxes at rates not exceeding 1% of gross retail income.

Defines taxable transactions as food or beverage furnished, prepared, or served for consumption at a retail location, including heated foods, mixed ingredients, and items sold with eating utensils provided by the merchant.

Tax revenues must be deposited in a food and beverage tax receipts fund and may be used to reduce property tax levies or fund economic development purposes.

Allows each municipality to use tax revenues for specific additional purposes: Danville (public safety, sidewalk/trail improvements), Elkhart (building improvements, street construction, solid waste management), Goshen (street/highway construction, water/sewer projects), Greenwood (public safety, parks/recreation), Rockville (storm water/street improvements supporting tourism), and Rushville (higher education facilities).

Requires municipalities to hold at least one public hearing before adopting an ordinance and to notify the Department of State Revenue, with taxes applying to transactions occurring after the last day of the month following ordinance adoption.