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Ellettsville tax revenue bill passed in House, now heads to Senate

By Donnie Burgess

Posted February 4, 2025

The Indiana Statehouse.

House Bill 1080 would allow Ellettsville to get a cut of food and beverage tax revenue (WFIU/WTIU News)

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A bill that could change the way food and beverage tax revenue is distributed in Monroe County is moving through the Statehouse.

House Bill 1080 would pave the way for the town of Ellettsville to collect revenue from the Monroe County Food and Beverage tax equal to 50 percent of the revenue collected outside the city of Bloomington.

Read more: Ellettsville makes case to lawmakers for cut of Monroe County Food and Beverage tax

According to the bipartisan fiscal impact analysis, the town of Ellettsville could receive an estimated $245,000 in revenue next year, $124,000 in 2027 and potentially a smaller amount this year, depending on when/if an ordinance is adopted. Ellettsville would have until Dec. 31 to establish the tax revenue ordinance.

The town's tax revenue would terminate by July 1, 2027.

The House passed the bill with a vote of 85-4 on Tuesday. Democrat State Rep. Matt Pierce of Bloomington said the tax revenue would help save Ellettsville’s rural transit program.

“The people who are served by rural transit in our community are elderly, senior citizens who cannot drive,” said Pierce. “They have to get to their doctors’ appointments, to the pharmacy. This is really critical, I think, life-saving kinds of things that happen there.”

The latest version of the bill would also allow the city of Shelbyville to be able to adopt a food and beverage tax.

The bill also allows several counties to adopt and/or adjust their innkeepers tax, such as LaGrange, Brown, Vanderburgh and Delaware counties.

If passed, the bill would become law July 1.

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