Richmond’s Proposed Food & Beverage Tax (FAB)

The City of Richmond, Indiana, is considering the introduction of a Food & Beverage Tax (FAB) to support the development of parks and quality of place projects in the community. This tax would help Richmond grow while keeping the financial impact on residents minimal. Many other Indiana cities, such as Carmel, Noblesville, and Westfield, have similar taxes in place.

What is the FAB Tax?

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The Food & Beverage Tax would be a 1% sales tax added to food and drink purchases in certain places. It would apply to:

• Food and beverages served in restaurants, bars, and cafes
• Catered events held in Richmond
• Prepared or heated foods sold at grocery store delis

Items that are sold as grocery items and not prepared or heated on-site (such as packaged items) would not be taxed.

‍How Will This Affect Consumers?

• Minimal Impact: The tax adds only $1 to a $100 bill, or $0.15 to a $15 meal.
• Visitors Contribute: A significant portion of the tax revenue is expected to come from visitors dining in Richmond, which will help reduce the tax burden on local residents.

Estimated Benefits for Richmond

• Revenue for Community Projects: The FAB tax could generate about $1.5 million annually. These funds would be dedicated to projects aimed at improving Richmond’s parks and overall quality of life, such as:
  
  • Enhancing parks and recreational spaces
  • Developing public areas that attract visitors and enhance community well-being
  • Improving the city's amenities to make it a more attractive place to live and visit
• Supporting Growth: The revenue will also help Richmond become a more vibrant community, further attracting visitors and supporting local businesses.

Frequently Asked Questions (FAQs)

• What types of purchases are taxed?
  The tax will apply to prepared food and beverages at:
  
  • Restaurants, bars, and cafes
  • Catered events (depending on location)
  • Hot food or prepared items sold at grocery store delis
• What is not taxed?
  Unprepared grocery items (like packaged snacks) and items that fall under other sales tax exemptions.
• How much will it cost me?
  
  • An additional $1 on a $100 restaurant bill
  • About $0.07 on a $7 lunch

How Will the Revenue Be Used?

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All funds from the FAB tax will be dedicated to:

• Enhancing parks and recreational spaces in Richmond
• Projects that improve the quality of place and public spaces for the community
• Developing amenities that attract visitors and improve the city’s appeal for residents

What’s Next?

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The City of Richmond will hold a public hearing to discuss the FAB tax. Afterward, the City Council will vote on whether to approve the tax. If passed, it will take effect at a later date.Key Dates:

• Public Hearing: Date to be announced
• Final Vote: Date to be announced
• Effective Date: If approved, the tax will go into effect after a final decision from the City Council.

Stay informed by checking the City of Richmond’s website for updates.

‍Resources for More Information

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For more details about the FAB tax and how it will affect you, you can contact the City of Richmond or visit the following resources:

• City of Richmond Website: [Link to website]
• Indiana Department of Revenue:
  
  • Email: FABtax@dor.in.gov
  • Phone: 317-233-3260

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