Existing Businesses:
Existing Businesses will pay FAB monthly through INTIME at intime.dor.in.gov by adding FAB to your account. Please note that paying FAB and the return (FAB-103) is separate from your monthly/quarterly sales and use tax on INTIME.
As an additional reference for INTIME, an INTIME Guide for Business Customers is available or contact DOR customer service at 317-232-2240.
New Businesses:
- Register your business via INBiz at inbiz.in.gov. For help with INBiz, contact customer service at 317-234-9768.
- Set up your INTIME account at intime.dor.in.gov. If needed, an INTIME Guide for Business Customers is available, or you may contact DOR customer service at 317-232-2240.
- Remit FAB monthly through INTIME at intime.dor.in.gov by adding FAB to you account. Please note that paying FAB and the return (FAB-103) is separate from your monthly/quarterly sales and use tax on INTIME.
The filing of the return and the remittance of the tax collected are due 30 days after the end of the month in which the transactions occur. However, if your monthly average FAB tax collected is $1000 or greater, your filing is due on the 20th of the month following the month in which the transactions occur.
For example, if your average FAB tax collected is $1200, you have until July 20 to file for June; if your average FAB tax collected is $400, you have until July 30 to file for June.
FAB applies to paid transactions in which food or beverages are furnished, prepared, or served by a retail merchant for consumption at a location or on equipment provided by a retail merchant.
This includes food sold in a heated state or heated by the retail merchant or if two or more food ingredients are mixed or combined by a retail merchant for sales as a single item. It also includes food or beverages served by a retail merchant off the merchant’s premises.
Also, any transaction involving food sold with eating utensils provided by the retail merchant, including plates, knives, forks, spoons, glasses, cups, napkins or straws, is subject to FAB.
Taxable transactions include:
- Food sold and served by a retail merchant that is performing catering activities;
- Food sold at a deli counter in a grocery store that is cooked or heated on the premises of the retail merchant; and
- Where the seller provides eating utensils, including plates, knives, forks, spoons, glasses, cups, napkins or straws.
Transactions not subject to tax include:
- Sales of food that is only cut, repackaged or pasteurized by the seller.
- Sales of eggs, fish, meat and poultry require cooking by the consumer.
For further information, the following are useful and informative guides provided by the State of Indiana regarding FAB.
Indiana Food and Beverage Tax - Business Guide
DOR: Food & Beverage Tax (in.gov)
Most groceries are not subject to the excise tax. Only items purchased that are prepared would be subject to the food and beverage tax. This includes items from a restaurant or a hot deli foods department in a grocery store and are sold as ready-to-eat food products. Taxable examples include foods like fried chicken, fried or prepared fish, or other hot food items sold at the deli.
Packaged alcohol like beer, wine, or liquor is not taxed unless served in a glass at a restaurant, bar, or lounge in a ready-to-consume state. Once served, it is then considered a prepared product and would be taxed.
The revenue raised from FAB will help fund the following projects in the City of Hammond:
- Expansion of the Hammond Sportsplex. The success of the Hammond Sportsplex has brought thousands of youth sports teams and families to Hammond. These visitors have enjoyed staying in our city and have helped bring in revenue to restaurants, hotels, and other businesses throughout the city. Its popularity has been so great that an expansion is planned for additional volleyball and basketball courts.
- Construction of Hammond’s Downtown South Shore Westlake Train Station. The redesign of our downtown is bringing in residents, businesses and commuters that downtown Hammond has not seen in decades. A downtown station is needed to make our city accessible to visitors and to allow individuals that work and live in the downtown area access to Chicago and other stops along the South Shore Line.
- Wolf Lake Pavilion upgrades. The Pavilion at Wolf Lake (PAV) has not only become a meeting place for the City of Hammond’s Festival of the Lakes and July 4th Celebration but also for graduations, free summer concert series, and more. Upgrades are becoming necessary as the Pavilion enters its second decade of operation to continue to be a destination of fun and entertainment.