HB 1586 Summary

• Rush County may adopt a county food and beverage tax between May 31, 2017 and December 1, 2017 at a rate not exceeding 1%, with tax revenue split 50% to the county and 50% to Rushville.

• If Rush County does not adopt the tax by December 1, 2017, the city of Rushville may adopt its own municipal food and beverage tax after November 30, 2017 at a rate not exceeding 1%, with all revenue going to the city.

• The tax applies to food and beverages furnished, prepared, or served for consumption at a retail merchant's location in the taxed jurisdiction, including heated foods and mixed food ingredients, but excludes transactions exempt from state gross retail tax.

• Tax revenue must be used for economic development, theater facility construction or maintenance, public safety, parks and recreation, or pledged for bonds and obligations related to these purposes.

• The bill became effective upon passage and declares an emergency for its enactment.