Indiana's House Bill 1427, introduced on April 16, 2025, aims to establish a city food and beverage tax to support local parks, recreation, and tourism initiatives. The proposed legislation allows cities to impose a tax rate of up to 1% on gross retail income from food and beverage transactions, with the tax collected in a manner similar to the state gross retail tax.

The bill specifies that the tax will not apply to certain transactions exempt from the state gross retail tax, ensuring that essential food services remain affordable. Revenue generated from this tax will be directed into a dedicated fund, which can only be used for park and recreation projects, tourism-related facilities, and related financial obligations.

Supporters of the bill argue that it will provide much-needed funding for local amenities and tourism, potentially boosting economic growth in communities across Indiana. However, some opponents express concerns about the additional financial burden on consumers and local businesses, fearing it may deter dining out or affect small retailers.

As the bill progresses through the legislative process, its implications could significantly impact local economies and community development. If passed, it may pave the way for enhanced recreational facilities and tourism attractions, fostering a more vibrant local culture. The ongoing debates surrounding the bill will likely shape its final form and implementation, making it a key focus for Indiana lawmakers and constituents alike.