Legislature OKs food and beverage tax bill

Richmond received a green light from Indiana’s legislature to enact a food and beverage tax, and so too did eight other Wayne County communities.

Now, Cambridge City, Centerville, Dublin, Fountain City, Greens Fork, Hagerstown, Milton and Mount Auburn also could choose to tax diners. Those provisions ultimately were sent to Gov. Mike Braun as part of House Enrolled Act 1427.

That bill was titled “Department of Local Government Finance” and included all state innkeeper’s tax and food and beverage tax requests among a variety of unrelated issues. It was approved April 24, the last day of the legislative session, with a 37-13 vote in the Senate and a 69-23 vote in the House. Both State Rep. Brad Barrett and State Sen. Jeff Raatz voted in favor.

At Richmond’s request, Barrett authored a bill pertaining only to the city. The provision was moved to another bill and, in the process, picked up a section that repeals the portion of Indiana code established in 2005 that permits Wayne County food and beverage taxes.

Jeff Plasterer, president of Wayne County’s commissioners, spoke to legislators about keeping options open for communities to raise revenue for projects determined through an ongoing county planning process. At that time, the eight towns were added to the bill with the stipulation any food and beverage tax revenue would be used for “(c)ommunity and economic development projects listed in the Wayne County Strategic Plan, excluding infrastructure.” Richmond’s revenue may be used for parks and recreation, including trails, or for activation of the Whitewater Gorge.