Indiana Code Title 6. Taxation § 6-9-27-5

Sec. 5. (a) Except as provided in subsection (b), the municipal food and beverage tax imposed on a food or beverage transaction described in section 4 of this chapter equals one percent (1%) of the gross retail income received by the merchant from the transaction.

(b) This subsection applies to a municipality described in section 1(2) of this chapter.  The fiscal body of the municipality may adopt an ordinance to increase the rate of the municipality's food and beverage tax to a rate that may not exceed two percent (2%) of the gross retail income received by a retail merchant from a taxable transaction.  An ordinance adopted under this subsection to increase the rate of the municipality's food and beverage tax rate expires January 1, 2047.

(c) For purposes of this chapter, the gross retail income received by a retail merchant from a transaction does not include the amount of tax imposed on the transaction under IC 6-2.5.