Ind. Code ch. 6-9-18

Ind. Code ch. 6-9-18
in effect

Ind. Code § 6-9-18-1 Application of chapter

Sec. 1. This chapter applies to any county that is not required to impose an innkeeper's tax under any other chapter of this article. However, a county that imposes an innkeeper's tax under this chapter may not also impose an innkeeper's tax under another chapter. As added by Acts 1982, P.L.1, SEC.21. Amended by P.L.55-1984, SEC.5; P.L.74-1986, SEC.6; P.L.32-1986, SEC.3.

Ind. Code § 6-9-18-2 Definitions

Sec. 2. As used in this chapter: "Executive" and "fiscal body" have the same meanings that are prescribed by IC 36-1-2. "Gross retail income" and "person" have the same meanings that are prescribed by IC 6-2.5-1. As added by Acts 1982, P.L.1, SEC.21.

Ind. Code § 6-9-18-3 Tax on lodging income

Sec. 3. (a) The fiscal body of a county may levy a tax on every person engaged in the business of renting or furnishing, for periods of less than thirty (30) days, any room or rooms, lodgings, or accommodations in any: (1) hotel; (2) motel; (3) boat motel; (4) inn; (5) college or university memorial union; (6) college or university residence hall or dormitory; or (7) tourist cabin; located in the county. (b) The tax does not apply to gross income received in a transaction in which: (1) a student rents lodgings in a college or university residence hall while that student participates in a course of study for which the student receives college credit from a college or university located in the county; or (2) a person rents a room, lodging, or accommodations for a period of thirty (30) days or more. (c) The tax may not exceed: (1) the rate of five percent (5%) in a county other than a county subject to subdivision (2), (3), (4), or (5); (2) after June 30, 2019, and except as provided in section 6.7 of this chapter, the rate of eight percent (8%) in Howard County; (3) after June 30, 2021, the rate of nine percent (9%) in Daviess County; (4) subject to subsection (g), after June 30, 2026, the rate of eight percent (8%) in DeKalb County; or (5) subject to subsection (g), after June 30, 2026, the rate of eight percent (8%) in Noble County. The tax is imposed on the gross retail income derived from lodging income only and is in addition to the state gross retail tax imposed under IC 6-2.5. (d) The county fiscal body may adopt an ordinance to require that the tax shall be paid monthly to the county treasurer. If such an ordinance is adopted, the tax shall be paid to the county treasurer not more than twenty (20) days after the end of the month the tax is collected. If such an ordinance is not adopted, the tax shall be imposed, paid, and collected in exactly the same manner as the state gross retail tax is imposed, paid, and collected under IC 6-2.5. (e) All of the provisions of IC 6-2.5 relating to rights, duties, liabilities, procedures, penalties, definitions, exemptions, and administration are applicable to the imposition and administration of the tax imposed under this section except to the extent those provisions are in conflict or inconsistent with the specific provisions of this chapter or the requirements of the county treasurer. If the tax is paid to the department of state revenue, the return to be filed for the payment of the tax under this section may be either a separate return or may be combined with the return filed for the payment of the state gross retail tax as the department of state revenue may, by rule, determine. (f) If the tax is paid to the department of state revenue, the amounts received from the tax imposed under this section shall be paid monthly by the treasurer of state to the county treasurer upon warrants issued by the state comptroller. (g) Beginning after December 31, 2048, a tax rate imposed in DeKalb County under subsection (c)(4) and in Noble County under subsection (c)(5) may not exceed five percent (5%). The portion of a tax rate imposed in DeKalb County under subsection (c)(4) or in Noble County under subsection (c)(5) that exceeds five percent (5%) shall expire January 1, 2049. As added by Acts 1982, P.L.1, SEC.21. Amended by P.L.108-1987, SEC.16; P.L.67-1997, SEC.18; P.L.175-2018, SEC.17; P.L.290-2019, SEC.9; P.L.122-2021, SEC.2; P.L.236-2023, SEC.94; P.L.9-2024, SEC.234; P.L.136-2024, SEC.31; P.L.230-2025, SEC.98; P.L.23-2026, SEC.44; P.L.157-2026, SEC.175.

Ind. Code § 6-9-18-4 Convention, visitor, and tourism promotion fund

Sec. 4. (a) If a tax is levied under section 3 of this chapter, the county treasurer shall establish a convention, visitor, and tourism promotion fund. He shall deposit in this fund all amounts he receives under that section. (b) In a county in which a commission has been established under section 5 of this chapter, the county auditor shall issue a warrant directing the county treasurer to transfer money from the convention, visitor, and tourism promotion fund to the commission's treasurer if the commission submits a written request for the transfer. (c) Money in a convention, visitor, and tourism promotion fund, or money transferred from such a fund under subsection (b), may be expended only to promote and encourage conventions, visitors, and tourism within the county. Expenditures under this subsection may include, but are not limited to, expenditures for advertising, promotional activities, trade shows, special events, and recreation. (d) If before July 1, 1997, a county issues a bond with a pledge of revenues from the tax imposed under section 3 of this chapter, the county shall continue to expend money from the fund for that purpose until the bond is paid. As added by Acts 1982, P.L.1, SEC.21. Amended by P.L.97-1983, SEC.1; P.L.55-1984, SEC.6; P.L.67-1997, SEC.19; P.L.46-1998, SEC.7.

Ind. Code § 6-9-18-5 Commission for promotion of convention, visitor, and tourism industry; creation; membership; organization

Sec. 5. (a) If a tax is levied under section 3 of this chapter, the county executive shall create a commission to promote the development and growth of the convention, visitor, and tourism industry in the county. If two (2) or more adjoining counties desire to establish a joint commission, the counties shall enter into an agreement under IC 36-1-7. (b) The county executive shall determine the number of members, which must be an odd number, to be appointed to the commission. However, the commission must also include any additional members appointed under subsection (i). A simple majority of the members must be: (1) engaged in a convention, visitor, or tourism business; or (2) involved in or promoting conventions, visitors, or tourism. A member appointed to the commission under subdivision (1) or (2) need not be a resident of the county if the member is an owner or an executive level employee of a convention, visitor, or tourism business that is located within the county. However, the member must be a resident of Indiana. If available and willing to serve, at least two (2) of the members must be engaged in the business of renting or furnishing rooms, lodging, or accommodations (as described in section 3 of this chapter). Not more than one (1) member may be affiliated with the same business entity. Except as otherwise provided in this subsection, each member must reside in the county. The county executive shall also determine who will make the appointments to the commission, except that the executive of the largest municipality in the county shall appoint a number of the members of the commission, which number shall be in the same ratio to the total size of the commission (rounded off to the nearest whole number) that the population of the largest municipality bears to the total population of the county. (c) This subsection applies to a county in which a tax imposed under this chapter becomes effective after December 31, 1989. If a municipality other than the largest municipality in the county collects fifty percent (50%) or more of the tax revenue collected under this chapter during the three (3) month period following imposition of the tax, the executive of the municipality shall appoint the same number of members to the commission that the executive of the largest municipality in the county appoints under subsection (b). (d) Except as provided in subsection (c), all terms of office of commission members begin on January 1. Initial appointments must be for staggered terms, with subsequent appointments for two (2) year terms. A member whose term expires may be reappointed to serve another term. If a vacancy occurs, the appointing authority shall appoint a qualified person to serve for the remainder of the term. If an initial appointment is not made by February 1 or a vacancy is not filled within thirty (30) days, the commission shall appoint a member by majority vote. (e) An individual who is appointed a member of the commission serves at the pleasure of the member's appointing authority as long as: (1) the officeholder who appointed the individual continues to hold the same office; or (2) the board, committee, or body that appointed the individual retains all of the same members who served on the board, committee, or body when the individual was appointed. If subdivision (1) or (2) does not apply, the individual may only be removed for cause. (f) Members of the commission may not receive a salary. However, commission members are entitled to reimbursement for necessary expenses incurred in the performance of their respective duties. (g) Each commission member, before entering the member's duties, shall take an oath of office in the usual form, to be endorsed upon the member's certificate of appointment and promptly filed with the clerk of the circuit court of the county. (h) The commission shall meet after January 1 each year for the purpose of organization. It shall elect one (1) of its members president, another vice president, another secretary, and another treasurer. The members elected to those offices shall perform the duties pertaining to the offices. The first officers chosen shall serve from the date of their election until their successors are elected and qualified. A majority of the commission constitutes a quorum, and the concurrence of a majority of the commission is necessary to authorize any action. (i) The commission must also include a member appointed by the city executive of each city within the county (other than a city described in subsections (b) or (c)). This subsection does not apply to Porter County. As added by Acts 1982, P.L.1, SEC.21. Amended by P.L.97-1983, SEC.2; P.L.62-1990, SEC.7; P.L.67-1997, SEC.20; P.L.175-2018, SEC.18; P.L.40-2026, SEC.1; P.L.157-2026, SEC.176.

Ind. Code § 6-9-18-6 Powers of commission; expenditures

Sec. 6. (a) The commission may: (1) accept and use gifts, grants, and contributions from any public or private source, under terms and conditions that the commission considers necessary and desirable; (2) sue and be sued; (3) enter into contracts and agreements; (4) make rules necessary for the conduct of its business and the accomplishment of its purposes; (5) receive and approve, alter, or reject requests and proposals for funding by corporations qualified under subdivision (6); (6) after its approval of a proposal, transfer money, quarterly or less frequently, from the fund established under section 4(a) of this chapter, or from money transferred from that fund to the commission's treasurer under section 4(b) of this chapter, to any Indiana not-for-profit corporation to promote and encourage conventions, visitors, or tourism in the county; and (7) require financial or other reports from any corporation that receives funds under this chapter. (b) All expenses of the commission shall be paid from the fund established under section 4(a) of this chapter or from money transferred from that fund to the commission's treasurer under section 4(b) of this chapter. The commission shall annually prepare a budget, taking into consideration the recommendations made by a corporation qualified under subsection (a)(6) and submit it to the county fiscal body for its review and approval. An expenditure may not be made under this chapter unless it is in accordance with an appropriation made by the county fiscal body in the manner provided by law. As added by Acts 1982, P.L.1, SEC.21. Amended by P.L.55-1984, SEC.7; P.L.67-1997, SEC.21; P.L.122-2021, SEC.3; P.L.230-2025, SEC.99.

Ind. Code § 6-9-18-6.7 Ordinance to extend the duration of the tax on lodging income in Howard County; tax rate

Sec. 6.7. (a) This section applies only to Howard County. (b) This section applies only to rooms, lodgings, or accommodations located within: (1) an inn; (2) a hotel; or (3) a motel. (c) As used in this section, "innkeeper's tax" means the tax that except as provided in this section is imposed on a person engaged in the business of renting or furnishing any rooms, lodgings, or accommodations for a duration of less than thirty (30) days. (d) As used in this section, "person" means an individual, a corporation, a limited liability company, a partnership, a marketplace facilitator under IC 6-9-29-6, or any other legal entity. (e) If the county fiscal body finds that: (1) an economic development project with a capital investment of at least two billion dollars ($2,000,000,000) will be under construction in the county during the time in which the ordinance would be in effect; and (2) the construction of the economic development project will require workers that must relocate to the county for a period of more than thirty (30) days; the county fiscal body may adopt an ordinance to extend the thirty (30) day duration described in subsection (c) for existing or newly built inns, hotels, or motels while the ordinance is in effect. (f) An ordinance adopted under this section does not apply to a person that, prior to January 1, 2024, rented or furnished rooms, lodgings, or accommodations that were not subject to the innkeeper's tax because the rental or furnishing period exceeded the thirty (30) day duration described in subsection (c). (g) An ordinance adopted under this section: (1) may not become effective until after April 30, 2024; and (2) must expire before July 1, 2025. (h) An ordinance adopted under this section must become effective on the first day of a month and must expire on the last day of a month. (i) If the county fiscal body adopts an ordinance under this section, the county fiscal body shall reduce the innkeeper's tax rate for any person subject to the innkeeper's tax rate from the current rate of eight percent (8%) to the rate of six percent (6%), beginning with the month that the ordinance becomes effective and effective until the ordinance expires. (j) Beginning with the first month after an ordinance under this section expires, the county fiscal body may return the innkeeper's tax rate for any person subject to the innkeeper's tax to a maximum rate of eight percent (8%) as described in section 3(c)(2) of this chapter. (k) If the county fiscal body adopts an ordinance under this section, the county fiscal body shall: (1) specify the effective date of the ordinance to provide that the ordinance does not take effect before May 1, 2024; (2) specify that the ordinance will expire before July 1, 2025; and (3) immediately send a certified copy of the ordinance to the commissioner of the department of state revenue. (l) If the county fiscal body does not immediately send a certified copy of the ordinance to the commissioner of the department of state revenue as required under subsection (k), the department of state revenue shall treat an extension of the duration under this section for which an innkeeper's tax is imposed as having been adopted on the later of: (1) the first day of the month that is not less than thirty (30) days after the ordinance is sent to the commissioner of the department of state revenue; or (2) the effective date specified in the ordinance. The department of state revenue shall collect the tax imposed on the days subject to an ordinance adopted under this section unless the extension exceeds the maximum period allowable under this section. (m) If an ordinance does not specify an effective date, the ordinance shall be considered effective on the earliest date allowable under this section. As added by P.L.136-2024, SEC.32.

Ind. Code § 6-9-18-7 Disposition of funds; audit

Sec. 7. All money coming into possession of the commission shall be deposited, held, secured, invested, and paid in accordance with statutes relating to the handling of public funds. The handling and expenditure of money coming into possession of the commission is subject to audit and supervision by the state board of accounts. As added by Acts 1982, P.L.1, SEC.21.

Ind. Code § 6-9-18-8 Unauthorized transfer or use of funds; offenses

Sec. 8. (a) A member of the commission who knowingly: (1) approves the transfer of money to any person or corporation not qualified under law for that transfer; or (2) approves a transfer for a purpose not permitted under law; commits a Level 6 felony. (b) A person who receives a transfer of money under this chapter and knowingly uses that money for any purpose not permitted under this chapter commits a Level 6 felony. As added by Acts 1982, P.L.1, SEC.21. Amended by P.L.158-2013, SEC.118.
Source: Open US Law by Vaquill AI (CC BY 4.0)URL: https://iga.in.gov/laws/2026/ic/titles/6Fetched: 10/17/2026