LEGISLATIVE SERVICES AGENCY
OFFICE OF FISCAL AND MANAGEMENT ANALYSIS
200 W. Washington St., Suite 301
Indianapolis, IN 46204
(317) 233-0696
iga.in.gov
FISCAL IMPACT STATEMENT
LS 6410 NOTE PREPARED: Feb 9, 2021
BILL NUMBER: SB 43 BILL AMENDED: Feb 4, 2021
SUBJECT: Jumbo Boats.
FIRST AUTHOR: Sen. Alting BILL STATUS: As Passed Senate
FIRST SPONSOR: Rep. Smaltz
FUNDS AFFECTED: X GENERAL IMPACT: State & Local
X DEDICATED
FEDERAL
Summary of Legislation: This bill modifies the definition of "jumbo boat" by removing the requirement
that the vessel be approved by the United States Coast Guard. It also provides that a holder of a: (1) boat beer
permit who operates a jumbo boat may sell beer for carryout; (2) boat liquor permit who operates a jumbo
boat may sell liquor for carryout; and (3) boat wine permit who operates a jumbo boat may sell wine for
carryout.
Effective Date: Upon passage.
Explanation of State Expenditures: Alcohol and Tobacco Commission (ATC): The ATC would incur some
administrative expenses relating to the revision of forms, instructions, and computer programs to allow a
qualified jumbo boat to get endorsement to conduct Type II Gambling Games . The provisions in the bill
could increase the administrative workload for the ATC. The ATC’s current level of resources should be
sufficient to implement these changes.
Department of State Revenue (DOR): The DOR will incur additional expenses to revise forms, update
instructions, and modify the existing tax processing system to account for the impact on Type II Gambling
Game Excise Tax. The DOR’s current level of funding and resources should be sufficient to administer this
tax deduction.
Explanation of State Revenues: Type II Gambling Game: The bill will allow a qualified jumbo boat to
acquire the endorsement to conduct Type II Gambling Games. Current law defines the term "jumbo boat"
as a United States Coast Guard approved vessel having a length of at least 135 feet and a width of at least
35 feet. The term does not include a riverboat. Allowing Type II games at these additional locations will
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result in additional license fees generated by Type II Gambling Games retailers. The license fee revenue is
deposited in the ATC’s Enforcement and Administration Fund. Any fiscal impact is indeterminable. Since
the bill is effective upon passage, any impact on licensee fee revenue could begin in FY 2021.
Gambling operations at a jumbo boat Type II Gambling Game establishment would also increase revenue
from the Type II Gambling Game Excise Tax imposed on purchases of gambling supplies and equipment.
The excise tax is deposited in the state General Fund. Any fiscal impact on excise tax revenue could begin
in FY 2021.
Type II Gambling Game License Fee: The fee is paid by a person who is licensed to sell alcoholic beverages
and has an endorsement to conduct Type II Gambling Games. The first year fee is $250. The renewal fee is
based on a schedule based on adjusted gross revenue from Type II Gambling Games operations in the
preceding year. Under current law, “Type II Gambling Game" means a pull tab, punchboard, or tip board
game. As reported by the ATC, there are about 1,600 approved alcoholic beverage license holders with an
endorsement to conduct Type II Gambling Games. This generated $0.25 M in license fees in FY 2020. The
revenue is deposited in ATC’s Enforcement and Administration Fund.
Type II Gambling Game Excise Tax: The Type II Gambling Game Excise Tax is paid by licensed distributors
or manufacturers of pull tabs, punchboards, and tip boards. The tax is equal to 10% of the price paid by all
approved alcoholic beverage license holders with an endorsement allowing on-premises sale of pull tabs,
punchboards, and tip boards. There are 23 licensed distributors and about 10 licensed manufacturers of Type
II Gambling Games. The tax generated about $0.5 M in FY 2020. The revenue is deposited in the state
General Fund.
Alcoholic Beverage Sales: Current law allows boat permit holders that operate a jumbo boat to serve
alcoholic beverages during the times when retailers are normally permitted to serve alcohol, if approved by
the local board of each county where the jumbo boat docks. All other boat permit holders may only serve
alcohol in the course of a run and one hour before the boat embarks on the run. The bill could increase the
number of permittees that qualify as a jumbo boat. The bill also allows a jumbo boat to sell alcohol for
carryout. These provisions could increase the availability of alcohol to patrons of these establishments. To
the extent that total alcohol consumption increases as a result of this change, revenue from Alcoholic
Beverage Taxes and Sales Tax could potentially increase. However, any increase would likely be minimal.
Alcoholic Beverage Tax revenue is distributed in varying amounts to the following funds: General Fund,
State Construction Fund, Enforcement and Administration Fund, Pension Relief Fund, Addiction Services
Fund, and Wine Grape Market Development Fund. Fifty percent of the General Fund distribution is allocated
to cities and towns according to a formula based on population.
Sales Tax revenue is deposited in the General Fund (99.838%), Commuter Rail Service Fund (0.131%), and
Industrial Rail Service Fund (0.031%).
Explanation of Local Expenditures:
Explanation of Local Revenues: Alcoholic Beverage Sales: To the extent that Alcoholic Beverage Taxes
increase, revenue distributed to cities and towns could increase. However, any impact on local revenues
would be small. (See Explanation of State Revenues.)
State Agencies Affected: Alcohol and Tobacco Commission; Department of State Revenue.
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Local Agencies Affected: Cities and towns.
Information Sources: Legislative Services Agency, Indiana Handbook of Taxes, Revenues, and
Appropriations, FY 2020. https://iga.in.gov/legislative/2021/publications/handbooks/
Fiscal Analyst: Lauren Tanselle, 317-232-9586; Randhir Jha, 317-232-9556.
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Statutes affected:
2. Senate Bill (S): 4-36-2-17, 4-36-2-21, 4-36-4-1, 4-36-4-2, 4-36-4-3, 4-36-5-1, 4-36-5-2, 4-36-5-4, 4-36-7-2, 4-36-4-5