Except as provided in section 8 of this chapter, a tax imposed under section 3 of this chapter applies to any transaction in which food or beverage is furnished, prepared, or served:

1. (1) for consumption at a location, or on equipment, provided by a retail merchant;
2. (2) in the county in which the tax is imposed; and
3. (3) by a retail merchant for consideration.

As added by P.L.74-1988, SEC.2.