Friday, July 12, 2013

Banner-Graphic Reports Cloverdale Can Finally Move Forward with Food and Beverage Tax

From the Greencastle Banner-Graphic:

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The council also got some welcome news as the town can finally move forward with the Food and Beverage Tax, something officials hope will generate some much-needed extra income.

The council agreed to pass Ordinance 2013-4 Food and Beverage Tax, which just establishes the tax itself.

The ordinance allows the town to collect one percent of the gross retail income received from taxable food and beverage transactions.

The food and beverages that the tax applies to anything that is furnished, prepared or served by a retail merchant. For example, anything that is sold that has to be heated or food sold at a deli counter at a grocery store will be taxed.

Merchants will then pay the sales tax to the Indiana Department of Revenue, who will then pay the money out to Cloverdale.

In order to pay the town the money it is entitled to, the council also established a Food and Beverage Tax Receipts Fund, Resolution 2013-7, which passed unanimously.

Back in 2009 the council at that time created an ordinance to establish a town court, Ordinance 2009-11. However, this ordinance was never recorded at the Putnam County Courthouse and council members began discussion Tuesday evening about the possibility of making the town court a reality.

The council was informed that the ordinance had to pass within a year of creating the court through an election and therefore it must create another ordinance if it wishes to proceed.

Although no ordinance was created Tuesday evening to re-establish the court, council members gave the impression that they will be passing a new ordinance in the future.
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