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Law allows different use for food and beverage tax
Updated on: 04.17.13

State Rep. Eric Koch (R-Bedford) authored legislation that would authorize the town of Nashville to use its food and beverage taxes to finance, construct, improve, equip, operate and maintain sidewalks and other streetscape improvements. The bill, House Enrolled Act 1133, was signed into law this week by Gov. Mike Pence.

“We are not increasing taxes or applying a new tax,” Koch clarified. “This new law simply gives Nashville the ability to appropriate funds collected on food and beverage taxes to improve and maintain its sidewalks and streetscapes.”

Under current law, the food and beverage tax revenue can only be used for public parking and restroom facilities. The law change will not affect Nashville’s total food and beverage tax collections.

Taxes on food and beverages sold in Nashville are deposited in the town’s Food and Beverage Tax Receipts Fund. The tax rate is 1 percent of the price received by merchants. It raised approximately $146,000 in 2012.

One recent improvement funded by food and beverage tax money is the Pat Reilly parking lot, which opened on the west side of Nashville last fall. The town council, in October, agreed that the revenue stream also was needed to help fix and install sidewalks and maintain lighting downtown.

HEA 1133 was sponsored in the Senate by Sen. Brent Steele (R-Bedford), who also represents Brown County.

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