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IN HB1191
Bill
Status
1/7/2016
Primary Sponsor
John Price
Click for details
AI Summary
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Authorizes municipal legislative bodies to impose a municipal food and beverage tax by ordinance, with a maximum rate of 1% of gross retail income from food and beverage transactions.
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Tax does not apply to consolidated cities, municipalities already imposing a food and beverage tax under existing law, or municipalities receiving county food and beverage tax revenue.
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Tax does not apply to transactions exempt from the state gross retail tax and does not include amounts of state or county food and beverage taxes already imposed.
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Municipalities may use revenue from the tax to reduce property tax levies, pay debt service on bonds or leases, fund capital projects, pay for road and street improvements, or serve as operating revenue.
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Tax rate must be imposed in 0.25% increments and becomes effective July 1, 2016, with the General Assembly covenanting not to repeal or amend the chapter in a manner that adversely affects the tax while related obligations remain unpaid.
Legislative Description
Uniform municipal food and beverage tax. Authorizes a municipal legislative body to impose by ordinance a municipal food and beverage tax. Provides that the tax may not exceed 1% of the gross retail income received from retail food and beverage transactions. Provides that the tax does not apply to a transaction that is exempt from the sales tax. Provides that the tax does not apply to a consolidated city, a municipality that has imposed a food and beverage tax under current law, or a municipality that is receiving county food and beverage tax revenue.
Last Action
First reading: referred to Committee on Ways and Means
1/7/2016