Bill > HB1117

This bill creates a new uniform municipal innkeeper's tax that allows municipalities to levy a tax on short-term lodging rentals (less than 30 days) at a maximum rate of $5 per night. The tax applies to various types of accommodations including hotels, motels, inns, college dormitories, and tourist cabins, but excludes student housing and long-term stays. Municipalities can choose to impose this tax only if they are not already imposing another innkeeper's tax, and the revenue must be deposited into a convention, visitor, and tourism promotion fund. The fund can only be used for specific purposes such as promoting tourism, creating or enhancing parks, and paying for municipal services related to special events. The tax is additional to existing state gross retail tax and any county innkeeper's tax. Municipalities can adopt an ordinance requiring monthly tax reporting and payment, with penalties for misuse of funds including potential Level 6 felony charges. The tax has a sunset provision, automatically terminating 22 years after its effective date. The bill also makes corresponding amendments to existing tax administration statutes to incorporate municipal innkeeper's taxes alongside existing county innkeeper's taxes.

Budget and Finance

https://iga.in.gov/legislative/2026/bills/house/1117/details