IN HB1142

Authorizes Indiana cities and counties not already covered by other food and beverage tax statutes to impose a local excise tax on prepared food and beverages at rates up to 1% (in 0.25% increments), effective July 1, 2026

Requires three public hearings before adoption, with the fiscal body voting at the third hearing after allowing public comment at all three

Limits revenue use to capital improvements promoting economic development (fairgrounds, convention centers, conference centers), related infrastructure costs, and debt service—explicitly prohibits use for operating expenses

Tax automatically expires 22 years after first imposed, or earlier if rescinded by the fiscal body when no outstanding obligations remain

Protects local property tax levies from reduction due to food and beverage tax revenue, and allows cities and counties to each impose separate taxes that stack in overlapping jurisdictions