WAYNE COUNTY AREA CHAMBER OF COMMERCE
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Food & Beverage Tax Information

Food & Beverage Tax: What It Means for Wayne County

The Wayne County Area Chamber of Commerce is committed to supporting a strong, vibrant local economy. A local food & beverage tax will allow us to invest in projects that will have a lasting impact on Richmond residents and visitors alike, while ensuring that our parks remain a free universal source of enjoyment and inspiration for generations to come.

Why the Chamber Supports It What Is / Isn’t Taxed How Funds Can Be Used Restaurant Member Resources & FAQ
Chamber Position

Why the Chamber Supports Richmond’s Food & Beverage Tax

The Wayne County Area Chamber of Commerce supports the proposed 1% Food & Beverage Tax within Richmond city limits because it is a practical, future-focused way to invest in the places that bring us together—our parks, trails, and the Whitewater Gorge.

  • Creates a dedicated, local funding source. Rather than competing with core services in the city budget, Food & Beverage (FAB) revenue is set aside specifically for eligible park, trail, and Gorge-related projects approved by Richmond Common Council.
  • Shares the cost with visitors. Both residents and visitors who dine out in Richmond pay the tax. A 1% rate adds just 1 penny per dollar—for example, 10¢ on a $10 meal—so those who enjoy Richmond’s amenities also help reinvest in them.
  • Strengthens quality of life and economic growth. Modern, well-maintained parks and trails boost tourism, support small businesses, and help attract and retain residents, talent, and employers.

The Chamber believes the Food & Beverage Tax is a forward-looking, locally controlled investment. With a small, 1% addition to prepared food and beverage sales, Richmond can sustain what we have, make needed improvements, and create new destination spaces in the Gorge and park system— keeping our community strong, active, and vibrant for generations to come.

What’s Covered

What Will Be Taxed & What Will Not Be Taxed

Richmond’s proposed 1% Food & Beverage Tax applies to prepared foods and drinks sold for immediate consumption within city limits. This includes meals, beverages, and other items furnished, prepared, or served by restaurants, cafés, fast-food establishments, bars, caterers, and similar businesses. The tax is collected in the same way as existing sales taxes.

Taxed Items Examples

  • Prepared meals served at restaurants, cafés, diners, and fast-food establishments.
  • Fountain drinks, coffee, tea, and other beverages served for immediate consumption.
  • Takeout and delivery meals ordered from Richmond food establishments.
  • Catered food and beverages provided for events or gatherings.
  • Food and beverages consumed on-site or using equipment provided by the retail merchant.

Not Taxed Examples

  • Groceries and unprepared foods purchased for home consumption.
  • Items such as milk, bread, canned goods, frozen meals, and standard grocery staples.
  • Beverages sold in grocery settings for off-premise consumption.
  • Non-food retail items (merchandise, paper products, household goods, etc.).
  • Any categories specifically exempt under Indiana law or local ordinance.

Important: These examples reflect how Food & Beverage taxes are defined in state law and in comparable Indiana communities. The final Richmond ordinance will provide the definitive list of taxable and exempt items. Businesses should consult their accountant or the Indiana Department of Revenue for compliance guidance.

Community Investment

Where the Money Collected Can Be Used

Revenue from Richmond’s proposed 1% Food & Beverage Tax may only be used for eligible park, trail, and Whitewater Gorge projects as defined in state law and the local ordinance. All funds will be overseen and appropriated by the Richmond Common Council through a transparent budgeting process, ensuring every dollar is invested responsibly.

Based on recommendations from the Food & Beverage Tax Advisory Team, projects fall into three major categories:

  • Sustain What We Have – Maintain and rehabilitate existing parks, public spaces, shelters, restrooms, trails, and essential infrastructure to keep them safe, accessible, and thriving.
  • Make Necessary Improvements – Upgrade amenities that enhance community use, including playgrounds, accessibility features, signage, landscaping, recreational areas, and family-friendly spaces.
  • Create New Destinations – Invest in transformational projects in the Whitewater Gorge, honoring Richmond’s music heritage, expanding recreation, and developing spaces for events, tourism, and community gatherings.

The Food & Beverage Tax is not a general revenue tool. Funds must be used only for eligible park, trail, and Gorge-related projects—strengthening Richmond’s quality of place and supporting long-term economic growth.

Examples of potential investment areas:

Park upgrades Trail expansion Whitewater Gorge development Accessibility improvements Recreation facilities Beautification Tourism development Environmental restoration

Strong parks and outdoor spaces deliver measurable community benefits: economic growth, increased tourism, better health and wellness, stronger community pride, improved environmental resilience, and a higher quality of life for residents and visitors.

For Restaurant & Hospitality Members

Restaurant Member Resource Guide & FAQ

Richmond’s proposed 1% Food & Beverage Tax is designed to be simple to administer and familiar for businesses. It is collected in the same way as existing sales taxes, and both residents and visitors who dine out contribute. Below are answers to common questions we hear from restaurant, bar, café, and hospitality owners.

How will this impact my customers?

The proposed rate is 1%, which adds just one penny per dollar to a qualifying purchase. For example:

  • $10 meal → $0.10 Food & Beverage Tax
  • $25 meal → $0.25 Food & Beverage Tax

A small amount on each meal adds up to a significant, dedicated funding source for Richmond’s parks, trails, and the Whitewater Gorge—assets that help bring more people to your business.

Will this create extra burden for my business?

The Food & Beverage Tax is collected at the point of sale, just like existing sales tax. Your POS system will need to be configured to apply the additional 1% to eligible prepared food and beverage sales. Once it is set up, collection becomes part of your normal process.

Which purchases at my business are affected?

The tax applies to prepared foods and beverages sold for immediate consumption within Richmond city limits. Examples include:

  • Restaurant and fast-food meals
  • Fountain drinks, coffee, tea, and other prepared beverages
  • Catered food and beverages for events
  • Takeout and delivery meals from Richmond establishments

Are grocery or retail items included?

No. Groceries, unprepared foods, and beverages purchased for home consumption are not subject to the Food & Beverage Tax. Items such as milk, bread, canned goods, frozen meals, and other standard grocery staples remain outside the scope of this tax. Non-food retail items are also not taxed under the Food & Beverage Tax.

How do I remit the Food & Beverage Tax?

Once adopted by the Richmond Common Council, the tax will be administered by the Indiana Department of Revenue (DOR). DOR will provide instructions on registration, filing frequency, and payment methods. In general, businesses will remit Food & Beverage Tax along with other state-administered taxes on a regular schedule.

Support & Resources for Richmond Businesses

The Chamber is here to help you stay informed and connected to official guidance. Use the links below to view relevant background documents, ordinance details, and park & recreation planning information.

  • Richmond Parks – Master Plan / Project List (PDF)
  • Richmond Parks – Presentation on Proposed FAB Tax Use
  • Official Richmond Food & Beverage Tax Page (City Website)
  • RichmondRising.com (Park & Gorge Redevelopment Info)
  • Indiana DOR – Food & Beverage Tax Business Guide (SIB-29)
  • Indiana DOR – Sales & Use Tax Bulletin (GB-203)

Source: Information on this page was compiled by Richmond Parks & Recreation and the City of Richmond, based on publicly available presentations, planning documents, and FAQs related to the proposed Food & Beverage Tax.

Diamond Partners  

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PLATINUM PARTNERS

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Wayne County Area Chamber of Commerce.  All Rights Reserved.
 33 South 7th Street, Suite 2 | Richmond, Indiana 47374​
Phone:(765) 962-1511 |
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