Richmond’s pursuit of a food and beverage tax has switched from Indiana’s House to the Senate, and it now directly impacts Wayne County and other county towns.
Food and beverage tax requests from Richmond, Marion and Shipshewana have been combined into Senate Bill 304. State Rep. Brad Barrett, a Richmond Republican representing District 56, authored House Bill 1596 at the request of an unnamed Richmond official, introduced it, and it was referred to the House’s Committee on Ways and Means.
SB 304, which originally just covered Marion’s implementation of a food and beverage tax, was amended in the Senate’s Committee on Tax and Fiscal Policy to include Richmond imposing a tax and Shipshewana’s request to increase its tax. The committee passed the amended bill 13-0.
The Richmond portion of the amended Senate bill includes some differences from Barrett’s House bill, but the bill also includes a section that would repeal IC 6-9-38 as of July 1. That’s the section of Indiana code that since 2005 has permitted Wayne County and any of its incorporated areas to establish a food and beverage tax.
Commissioner Jeff Plasterer addressed that provision during the Feb. 12 commissioners meeting. Plasterer said there’s no inclination for the county to impose a food and beverage tax; however, he sees no reason to eliminate legislation that permits the tax until Jan. 1, 2045. He sees this as a particularly inopportune time to repeal the legislation, despite no action being taken in 20 years.
First, the county and most of its towns are engaging in a planning process that will result in lists prioritizing projects. The food and beverage tax could allow the county or towns to fund those projects. Second, the state legislature continues analyzing changes to the state’s property tax system, which is expected to reduce revenues received by the county and its towns. A food and beverage tax could replace some of that funding.
Plasterer said that he’s expressed concern to Barrett and State Sen. Jeff Raatz about having Wayne County’s food and beverage tax option repealed.
The Senate bill still would enable Richmond to collect up to a penny per dollar spent on food and beverages “furnished, prepared or served for consumption at a location or on equipment provided by a retail merchant” within the city.
The bill adds a provision that Richmond Common Council must adopt a resolution supporting a proposed food and beverage tax in addition to the city conducting a public hearing about the proposed tax. The bill would give Richmond until Jan. 1, 2027, to impose a tax that would expire Jan. 1, 2047.
Barrett’s House bill enabled the city to spend food and beverage tax proceeds to promote conventions, visitors and tourism; to promote economic development; for parks and recreation, including trails; for activation of the Whitewater Gorge; and for bonds or leases.
The Senate bill limits expenditures to the final three options.
A report by the Legislative Services Agency’s Office of Fiscal and Management Analysis estimates that implementing the tax could raise the city about $900,000 in 2026.
A version of this article appeared in the February 19 2025 print edition of the Western Wayne News.