Johnson County Treasurer proposes change for food and beverage tax collection - dailyjournal.net

Local News Top Stories X Johnson County officials are in the process of changing how the food and beverage tax is collected, shifting the collection responsibilities to the state in same. The 1% is pictured as “JO S T” on this receipt. Noah Crenshaw | Daily Journal Johnson County is in the process of changing how the food and beverage tax is collected — but the amount of the tax is not changing. Of all the municipalities in Indiana that have a food and beverage tax , Johnson County is the only one where employees at the treasurer’s office collect the tax directly. All others have restaurants and bars submit their taxes to the Indiana Department of Revenue, which passes the revenue back to the government unit. Right now, food and drink establishments have to keep track of the taxes they’ve charged to customers and then make a payment to the county via the mail or in person at the treasurer’s office in the West Annex each month. The tax is 1% of the purchase price of food and beverage bills. If the Johnson County Council approves the change in collection methods on a second reading of the ordinance next month, business owners would be able to submit their payments to the state online. The council voted 6-1 at their Monday meeting on the first reading of the ordinance, with council member Melinda Griesemer voting “no” because she thinks the issue should be researched more. If the ordinance is passed on second reading, food and beverage taxes would be collected by the state starting in July. The tax would be submitted through the DOR’s Indiana Taxpayer Information Management Engine, or InTIME . Individuals, as well as businesses that charge a sales tax, use the same website to pay taxes. Johnson County Treasurer Kim Hamilton is asking to make this switch for a few reasons. The chief reason is because the county’s current software is failing. “The software that we currently have is at its end of life. It’s no longer supported by the company that supplied us with the software,” Hamilton said. “The existing software contains glitches, and one of our biggest issues coming up on us is that we are unable to print the 2027 vouchers that need to be sent out to all of the vendors.” An independent software developer created the software for the county in 2017. The software was supposed to be able to accept online payments, but it never could, said Michele Graves, current county council president and former treasurer. The developed eventually had a “falling out” with a former county attorney and will no longer work on the software, Graves said. “It’s been on a wing and a prayer that it’s hung in there this long. It’s just a matter of time [before] it implodes,” she said. “And if it implodes tomorrow, we’re in really big trouble,” Hamilton added. Graves had been trying to find a new vendor when she led the treasurer’s office, but couldn’t find an affordable option. Hamilton picked up where Graves left off when she took office in 2025 and researched what it would take to switch over to state collections. Hamilton Switching to this collection method would allow the county to take online payments for the first time. Multiple business owners — particularly those who own restaurants or bars in multiple Indiana counties — complain that they have to mail payments or pay at the annex, Hamilton said. Food and beverage businesses also charge a regular sales tax, so they already have an INTime account. “It will basically be a one-stop shop for any food and beverage merchant in Johnson County. It’s just a one-step process versus two steps now — INTime online, manually Johnson County,” Graves said. Because Johnson County is the only one that collects taxes this way, it takes extra administrative steps to explain the process to new vendors. After each new food permit is issued, the health department notifies the treasurer’s office, and then the treasurer’s office has to reach out to explain the process, Hamilton said. The county doesn’t have to pay to switch over to state collections and would only stand to lose roughly $5,000 in interest. This interest comes from late tax payments, which would likely be eliminated or reduced if taxpayers could pay online, Hamilton said. Most tax payments come in during the third week of each month, and $5,000 is an estimate she came up with based on interest that was accrued in 2025, she said. A couple of council members asked if the treasurer’s office would continue to monitor the tax collections after the transition. Hamilton said her staff would still monitor collections, and she expects the county may even collect more taxes this way. “I think we will make that [interest money] up in businesses that we will catch that the state already has in their system that have fallen through the cracks by our extinct way of doing this,” Hamilton said. Commissioner Ron West, who was on the county council when the tax was first levied in 2005, attended the meeting and spoke up to urge the council not to make this switch. Much of the reason county officials chose to directly collect the taxes was that the state had a history of not giving Johnson County all of the taxes and payments the government is owed, he alleges. He cited miscalculated refunds and the Indiana Department of Correction paying less than the sheriff’s office is owed for housing state prisoners at the county jail. West believes the county should try to fix up the current software instead of making the switch. “It keeps the state in line,” West said. “ … Our process is cumbersome right now; I don’t deny that. But I think the solution is not to forfeit our home rule — which we’re fighting all the time — and the dignity and prestige that comes along with the collection of this tax just for the convenience of the vendors when we can supply that convenience.” Council member Pam Burton, who was the county auditor when some of the state errors that West referred to occurred, asked West if he believes the DOR has increased its accuracy over the years. West said last year was the first year he believes the county got the correct refund in the past 25 years. The council ultimately decided to go with Hamilton’s recommendation and passed the ordinance amendment on first reading. The second reading is expected to take place at the council’s May meeting. Prior to any change, the treasurer’s office will notify all current food and beverage vendors in the county. “We will send them a letter,” Hamilton said. “It will have the directions on our change, and then we’ll have the directions on how they need to go to the state in time site and sign up, and then we’ll help any of them that call in.” Featured Local Savings