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IN HB1101
Bill
Status
1/7/2019
Primary Sponsor
Robert Cherry
Click for details
AI Summary
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County fiscal bodies may impose a uniform food and beverage tax up to 1% (in 0.25% increments) if not already required or authorized to impose such a tax under other laws, except counties with stadium/convention building taxes may also adopt this tax.
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Revenue restricted to capital improvements promoting economic development (fairgrounds, convention centers, conference centers), related acquisition and construction costs, and debt service on bonds or leases for these purposes—operating expenses explicitly prohibited.
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Adoption requires three public hearings with public comment, followed by submission of a certified ordinance copy to the Department of Revenue.
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Tax automatically expires on the earlier of: county fiscal body rescission or the last day of the month after the 10th anniversary of initial imposition, with restrictions on rate reductions while outstanding obligations remain.
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County property tax levies cannot be reduced by the Department of Local Government Finance based on receipt of this food and beverage tax revenue.
Legislative Description
Uniform food and beverage tax. Provides that a county fiscal body may impose a uniform food and beverage tax if the county is not required or authorized to impose a food and beverage tax under any other law (other than the stadium and convention funding food and beverage tax). Specifies that the tax rate may not exceed 1% and must be imposed in increments of 0.25%. Provides that revenue from the tax may be used by the county, after appropriation by the county fiscal body, only for: (1) capital improvements that promote economic development in the county, including fairgrounds, convention centers, or conference centers; (2) certain costs that are necessary or useful for such a capital improvement; and (3) paying the principal and interest of any bonds issued or lease rental payments for a lease entered into for these purposes. Specifies that the tax revenue may not be used to pay any operating expenses. Authorizes the county fiscal body to pledge the tax revenue to pay bonds issued, loans obtained, and lease payments or other obligations incurred by or on behalf of the county for purposes authorized under the uniform food and beverage tax law. Specifies that a uniform food and beverage tax imposed in a county remains in effect until the earlier of: (1) the date on which the county fiscal body rescinds the food and beverage tax; or (2) the last day of the month beginning immediately after the tenth anniversary of the date on which the food and beverage tax was first imposed in the county.
Last Action
First reading: referred to Committee on Ways and Means
1/7/2019