IN
Indiana Senate Bill SB0238

Indiana 2024 Regular Session

Indiana Senate Bill SB0238 Compare Versions

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1+*ES0238.2*
2+Reprinted
3+February 28, 2024
4+ENGROSSED
5+SENATE BILL No. 238
6+_____
7+DIGEST OF SB 238 (Updated February 27, 2024 2:21 pm - DI 125)
8+Citations Affected: IC 6-9.
9+Synopsis: Innkeeper's tax. Authorizes Jefferson County to impose its
10+innkeeper's tax at a rate of 8% (instead of 5% under current law).
11+Provides that, if the tax rate is increased to more than 5%, the portion
12+of the tax rate that exceeds 5% expires on December 31, 2045.
13+Provides that the county fiscal body of Howard County may adopt an
14+ordinance that would impose the innkeeper's tax on a person engaged
15+(Continued next page)
16+Effective: Upon passage.
17+Maxwell, Garten
18+(HOUSE SPONSORS — ZIMMERMA N, KARICKHOFF, KING, MILLER D)
19+January 10, 2024, read first time and referred to Committee on Tax and Fiscal Policy.
20+January 23, 2024, reported favorably — Do Pass.
21+January 25, 2024, read second time, amended, ordered engrossed.
22+January 26, 2024, engrossed.
23+January 29, 2024, read third time, passed. Yeas 38, nays 11.
24+HOUSE ACTION
25+February 6, 2024, read first time and referred to Committee on Ways and Means.
26+February 22, 2024, amended, reported — Do Pass.
27+February 27, 2024, read second time, amended, ordered engrossed.
28+ES 238—LS 6564/DI 120 Digest Continued
29+in the business of renting or furnishing rooms, lodgings, or
30+accommodations located within an inn, a hotel, or a motel for a period
31+of more than 30 days. (Current law limits the imposition of the
32+innkeeper's tax to renting or furnishing rooms, lodgings, or
33+accommodations for periods of less than 30 days.) Provides that an
34+ordinance would not apply to existing rooms, lodgings, or
35+accommodations that were not subject to the 30 day threshold prior to
36+January 1, 2024. Provides that an ordinance may not become effective
37+until after April 30, 2024, and must expire before July 1, 2025.
38+Requires the county fiscal body, if an ordinance is adopted, to reduce
39+the tax for any person subject to the innkeeper's tax from 8% (current
40+law) to 6% until the ordinance expires. Allows the county fiscal body
41+to return the tax rate to 8% after the ordinance expires. Authorizes
42+Elkhart County to impose its innkeeper's tax at a rate of 8% (instead of
43+5% under current law). Provides that, if the tax rate is increased to
44+more than 5%, the portion of the tax rate that exceeds 5% expires on
45+December 31, 2045. Authorizes Knox County to impose its innkeeper's
46+tax at a rate of 8% (instead of 6% under current law). Provides that, if
47+the tax rate is increased to more than 6%, the portion of the tax rate that
48+exceeds 6% expires on December 31, 2045.
49+ES 238—LS 6564/DI 120ES 238—LS 6564/DI 120 Reprinted
50+February 28, 2024
151 Second Regular Session of the 123rd General Assembly (2024)
252 PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
353 Constitution) is being amended, the text of the existing provision will appear in this style type,
454 additions will appear in this style type, and deletions will appear in this style type.
555 Additions: Whenever a new statutory provision is being enacted (or a new constitutional
656 provision adopted), the text of the new provision will appear in this style type. Also, the
757 word NEW will appear in that style type in the introductory clause of each SECTION that adds
858 a new provision to the Indiana Code or the Indiana Constitution.
959 Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
1060 between statutes enacted by the 2023 Regular Session of the General Assembly.
11-SENATE ENROLLED ACT No. 238
12-AN ACT to amend the Indiana Code concerning taxation.
61+ENGROSSED
62+SENATE BILL No. 238
63+A BILL FOR AN ACT to amend the Indiana Code concerning
64+taxation.
1365 Be it enacted by the General Assembly of the State of Indiana:
14-SECTION 1. IC 6-9-15-6, AS AMENDED BY THE TECHNICAL
15-CORRECTIONS BILL OF THE 2024 GENERAL ASSEMBLY, IS
16-AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON
17-PASSAGE]: Sec. 6. (a) The county council may impose a tax on every
18-person engaged in the business of renting or furnishing, for periods of
19-less than thirty (30) days, any room or rooms, lodging, or
20-accommodations in any hotel, motel, inn, tourist camp, or tourist cabin
21-located in the county. However, the tax may not be imposed on the
22-renting or furnishing of:
23-(1) campsites at a state or federal park or forest;
24-(2) rooms, lodgings, or accommodations to a person for a period
25-of thirty (30) days or more; or
26-(3) any room, lodging, or accommodations in a university or
27-college residence hall to a student participating in a course of
28-study for which the student receives college credit from a college
29-or university located in the county.
30-(b) The tax shall be imposed at the rate of four percent (4%) on the
66+1 SECTION 1. IC 6-9-15-6, AS AMENDED BY THE TECHNICAL
67+2 CORRECTIONS BILL OF THE 2024 GENERAL ASSEMBLY, IS
68+3 AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON
69+4 PASSAGE]: Sec. 6. (a) The county council may impose a tax on every
70+5 person engaged in the business of renting or furnishing, for periods of
71+6 less than thirty (30) days, any room or rooms, lodging, or
72+7 accommodations in any hotel, motel, inn, tourist camp, or tourist cabin
73+8 located in the county. However, the tax may not be imposed on the
74+9 renting or furnishing of:
75+10 (1) campsites at a state or federal park or forest;
76+11 (2) rooms, lodgings, or accommodations to a person for a period
77+12 of thirty (30) days or more; or
78+13 (3) any room, lodging, or accommodations in a university or
79+14 college residence hall to a student participating in a course of
80+15 study for which the student receives college credit from a college
81+16 or university located in the county.
82+17 (b) The tax shall be imposed at the rate of four percent (4%) on the
83+ES 238—LS 6564/DI 120 2
84+1 gross income derived from lodging income only. Subject to subsection
85+2 (g), the county council may increase the tax rate to five percent (5%).
86+3 eight percent (8%). The tax is in addition to the state gross retail tax
87+4 imposed on such persons by IC 6-2.5.
88+5 (c) The county fiscal body may adopt an ordinance to require that
89+6 the tax shall be paid monthly to the county treasurer. If such an
90+7 ordinance is adopted, the tax shall be paid to the county treasurer not
91+8 more than twenty (20) days after the end of the month the tax is
92+9 collected. If such an ordinance is not adopted, the tax shall be imposed,
93+10 paid, and collected in exactly the same manner as the state gross retail
94+11 tax is imposed, paid, and collected pursuant to IC 6-2.5.
95+12 (d) All of the provisions of IC 6-2.5 relating to rights, duties,
96+13 liabilities, procedures, penalties, definitions, exemptions, and
97+14 administration shall be applicable to the imposition and administration
98+15 of the tax imposed by this section except to the extent such provisions
99+16 are in conflict or inconsistent with the specific provisions of this
100+17 chapter or the requirements of the county treasurer. Specifically and not
101+18 in limitation of the foregoing sentence, the terms "person" and "gross
102+19 retail income" have the same meaning in this section as they have in
103+20 IC 6-2.5, except that "person" does not include state supported
104+21 educational institutions.
105+22 (e) If the tax is paid to the department of state revenue, the returns
106+23 to be filed for the payment of the tax under this section may be either
107+24 a separate return or may be combined with the return filed for the
108+25 payment of the state gross retail tax, as the department of state revenue
109+26 may by rule determine.
110+27 (f) If the tax is paid to the department of state revenue, the amounts
111+28 received from such tax shall be paid quarterly by the treasurer of state
112+29 to the county treasurer upon warrants issued by the auditor of state
113+30 comptroller.
114+31 (g) This subsection applies only if the county council increases
115+32 the tax rate to more than five percent (5%). The portion of the tax
116+33 rate that exceeds five percent (5%) shall expire on December 31,
117+34 2045.
118+35 SECTION 2. IC 6-9-18-3, AS AMENDED BY THE TECHNICAL
119+36 CORRECTIONS BILL OF THE 2024 GENERAL ASSEMBLY, IS
120+37 AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON
121+38 PASSAGE]: Sec. 3. (a) The fiscal body of a county may levy a tax on
122+39 every person engaged in the business of renting or furnishing, for
123+40 periods of less than thirty (30) days, any room or rooms, lodgings, or
124+41 accommodations in any:
125+42 (1) hotel;
126+ES 238—LS 6564/DI 120 3
127+1 (2) motel;
128+2 (3) boat motel;
129+3 (4) inn;
130+4 (5) college or university memorial union;
131+5 (6) college or university residence hall or dormitory; or
132+6 (7) tourist cabin;
133+7 located in the county.
134+8 (b) The tax does not apply to gross income received in a transaction
135+9 in which:
136+10 (1) a student rents lodgings in a college or university residence
137+11 hall while that student participates in a course of study for which
138+12 the student receives college credit from a college or university
139+13 located in the county; or
140+14 (2) a person rents a room, lodging, or accommodations for a
141+15 period of thirty (30) days or more.
142+16 (c) The tax may not exceed:
143+17 (1) the rate of five percent (5%) in a county other than a county
144+18 subject to subdivision (2), (3), or (4);
145+19 (2) after June 30, 2019, and except as provided in section 6.7 of
146+20 this chapter, the rate of eight percent (8%) in Howard County;
147+21 (3) after June 30, 2021, the rate of nine percent (9%) in Daviess
148+22 County; or
149+23 (4) after June 30, 2023, the rate of eight percent (8%) in Parke
150+24 County.
151+25 The tax is imposed on the gross retail income derived from lodging
152+26 income only and is in addition to the state gross retail tax imposed
153+27 under IC 6-2.5.
154+28 (d) The county fiscal body may adopt an ordinance to require that
155+29 the tax shall be paid monthly to the county treasurer. If such an
156+30 ordinance is adopted, the tax shall be paid to the county treasurer not
157+31 more than twenty (20) days after the end of the month the tax is
158+32 collected. If such an ordinance is not adopted, the tax shall be imposed,
159+33 paid, and collected in exactly the same manner as the state gross retail
160+34 tax is imposed, paid, and collected under IC 6-2.5.
161+35 (e) All of the provisions of IC 6-2.5 relating to rights, duties,
162+36 liabilities, procedures, penalties, definitions, exemptions, and
163+37 administration are applicable to the imposition and administration of
164+38 the tax imposed under this section except to the extent those provisions
165+39 are in conflict or inconsistent with the specific provisions of this
166+40 chapter or the requirements of the county treasurer. If the tax is paid to
167+41 the department of state revenue, the return to be filed for the payment
168+42 of the tax under this section may be either a separate return or may be
169+ES 238—LS 6564/DI 120 4
170+1 combined with the return filed for the payment of the state gross retail
171+2 tax as the department of state revenue may, by rule, determine.
172+3 (f) If the tax is paid to the department of state revenue, the amounts
173+4 received from the tax imposed under this section shall be paid monthly
174+5 by the treasurer of state to the county treasurer upon warrants issued by
175+6 the auditor of state comptroller.
176+7 SECTION 3. IC 6-9-18-6.7 IS ADDED TO THE INDIANA CODE
177+8 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE
178+9 UPON PASSAGE]: Sec. 6.7. (a) This section applies only to Howard
179+10 County.
180+11 (b) This section applies only to rooms, lodgings, or
181+12 accommodations located within:
182+13 (1) an inn;
183+14 (2) a hotel; or
184+15 (3) a motel.
185+16 (c) As used in this section, "innkeeper's tax" means the tax that
186+17 except as provided in this section is imposed on a person engaged
187+18 in the business of renting or furnishing any rooms, lodgings, or
188+19 accommodations for a duration of less than thirty (30) days.
189+20 (d) As used in this section, "person" means an individual, a
190+21 corporation, a limited liability company, a partnership, a
191+22 marketplace facilitator under IC 6-9-29-6, or any other legal entity.
192+23 (e) The county fiscal body may adopt an ordinance to extend the
193+24 thirty (30) day duration described in subsection (c) for existing or
194+25 newly built inns, hotels, or motels while the ordinance is in effect.
195+26 (f) An ordinance adopted under this section does not apply to a
196+27 person that, prior to January 1, 2024, rented or furnished rooms,
197+28 lodgings, or accommodations that were not subject to the
198+29 innkeeper's tax because the rental or furnishing period exceeded
199+30 the thirty (30) day duration described in subsection (c).
200+31 (g) An ordinance adopted under this section:
201+32 (1) may not become effective until after April 30, 2024; and
202+33 (2) must expire before July 1, 2025.
203+34 (h) An ordinance adopted under this section must become
204+35 effective on the first day of a month and must expire on the last day
205+36 of a month.
206+37 (i) If the county fiscal body adopts an ordinance under this
207+38 section, the county fiscal body shall reduce the innkeeper's tax rate
208+39 for any person subject to the innkeeper's tax rate from the current
209+40 rate of eight percent (8%) to the rate of six percent (6%),
210+41 beginning with the month that the ordinance becomes effective and
211+42 effective until the ordinance expires.
212+ES 238—LS 6564/DI 120 5
213+1 (j) Beginning with the first month after an ordinance under this
214+2 section expires, the county fiscal body may return the innkeeper's
215+3 tax rate for any person subject to the innkeeper's tax to a
216+4 maximum rate of eight percent (8%) as described in section 3(c)(2)
217+5 of this chapter.
218+6 (k) If the county fiscal body adopts an ordinance under this
219+7 section, the county fiscal body shall:
220+8 (1) specify the effective date of the ordinance to provide that
221+9 the ordinance does not take effect before May 1, 2024;
222+10 (2) specify that the ordinance will expire before July 1, 2025;
223+11 and
224+12 (3) immediately send a certified copy of the ordinance to the
225+13 commissioner of the department of state revenue.
226+14 The extension of the duration of renting and furnishing any room,
227+15 lodgings, or accommodations for which an innkeeper's tax may be
228+16 imposed in an ordinance adopted under this section continues in
229+17 effect unless the extension is rescinded.
230+18 (l) If the county fiscal body does not immediately send a
231+19 certified copy of the ordinance to the commissioner of the
232+20 department of state revenue as required under subsection (k), the
233+21 department of state revenue shall treat an extension of the duration
234+22 under this section for which an innkeeper's tax is imposed as
235+23 having been adopted on the later of:
236+24 (1) the first day of the month that is not less than thirty (30)
237+25 days after the ordinance is sent to the commissioner of the
238+26 department of state revenue; or
239+27 (2) the effective date specified in the ordinance.
240+28 The department of state revenue shall collect the tax imposed on
241+29 the days subject to an ordinance adopted under this section unless
242+30 the extension exceeds the maximum period allowable under this
243+31 section.
244+32 (m) If an ordinance does not specify an effective date, the
245+33 ordinance shall be considered effective on the earliest date
246+34 allowable under this section.
247+35 SECTION 4. IC 6-9-19-3, AS AMENDED BY THE TECHNICAL
248+36 CORRECTIONS BILL OF THE 2024 GENERAL ASSEMBLY, IS
249+37 AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON
250+38 PASSAGE]: Sec. 3. (a) The fiscal body of a county may levy a tax on
251+39 every person engaged in the business of renting or furnishing, for
252+40 periods of less than thirty (30) days, any room or rooms, lodgings, or
253+41 accommodations in any:
254+42 (1) hotel;
255+ES 238—LS 6564/DI 120 6
256+1 (2) motel;
257+2 (3) inn; or
258+3 (4) tourist cabin;
259+4 that has thirty (30) or more rooms for rent and is located in the county.
260+5 (b) The tax does not apply to gross income received in a transaction
261+6 in which:
262+7 (1) a student rents lodgings in a college or university residence
263+8 hall while that student participates in a course of study for which
264+9 the student receives college credit from a college or university
265+10 located in the county; or
266+11 (2) a person rents a room, lodging, or accommodations for a
267+12 period of thirty (30) days or more.
268+13 (c) Subject to subsection (g), the tax may not exceed the rate of
269+14 five percent (5%) eight percent (8%) on the gross retail income
270+15 derived from lodging income only and is in addition to the state gross
271+16 retail tax imposed under IC 6-2.5.
272+17 (d) The county fiscal body may adopt an ordinance to require that
273+18 the tax shall be paid monthly to the county treasurer. If such an
274+19 ordinance is adopted, the tax shall be paid to the county treasurer not
275+20 more than twenty (20) days after the end of the month the tax is
276+21 collected. If such an ordinance is not adopted, the tax shall be imposed,
277+22 paid, and collected in exactly the same manner as the state gross retail
278+23 tax is imposed, paid, and collected under IC 6-2.5.
279+24 (e) All of the provisions of IC 6-2.5 relating to rights, duties,
280+25 liabilities, procedures, penalties, definitions, exemptions, and
281+26 administration are applicable to the imposition and administration of
282+27 the tax imposed under this section except to the extent those provisions
283+28 are in conflict or inconsistent with the specific provisions of this
284+29 chapter or the requirements of the county treasurer. If the tax is paid to
285+30 the department of state revenue, the return to be filed for the payment
286+31 of the tax under this section may be either a separate return or may be
287+32 combined with the return filed for the payment of the state gross retail
288+33 tax as the department of state revenue may, by rule, determine.
289+34 (f) If the tax is paid to the department of state revenue, the taxes the
290+35 department of state revenue receives under this section during a month
291+36 shall be paid, by the end of the next succeeding month, to the county
292+37 treasurer upon warrants issued by the auditor of state comptroller.
293+38 (g) This subsection applies only if the county fiscal body
294+39 increases the tax rate to more than five percent (5%). The portion
295+40 of the tax rate that exceeds five percent (5%) shall expire on
296+41 December 31, 2045.
297+42 SECTION 5. IC 6-9-53-3, AS ADDED BY P.L.290-2019,
298+ES 238—LS 6564/DI 120 7
299+1 SECTION 16, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
300+2 UPON PASSAGE]: Sec. 3. (a) The fiscal body of the county may levy
301+3 a tax on every person engaged in the business of renting or furnishing,
302+4 for periods of less than thirty (30) days, any room or rooms, lodgings,
303+5 or accommodations in any:
304+6 (1) hotel;
305+7 (2) motel;
306+8 (3) boat motel;
307+9 (4) inn;
308+10 (5) college or university memorial union;
309+11 (6) college or university residence hall or dormitory; or
310+12 (7) tourist cabin;
311+13 located in the county.
312+14 (b) The tax does not apply to gross income received in a transaction
313+15 in which:
314+16 (1) a student rents lodgings in a college or university residence
315+17 hall while that student participates in a course of study for which
316+18 the student receives college credit from a college or university
317+19 located in the county; or
318+20 (2) a person rents a room, lodging, or accommodations for a
319+21 period of thirty (30) days or more.
320+22 (c) Subject to subsection (d), the tax may not exceed the rate of six
321+23 eight percent (6%) (8%) on the gross retail income derived from
322+24 lodging income only and is in addition to the state gross retail tax
323+25 imposed under IC 6-2.5. However, if the county fiscal body increases
324+26 the tax rate to more than six percent (6%), the portion of the tax
325+27 rate that exceeds six percent (6%) shall expire on December 31,
326+28 2045.
327+29 (d) Notwithstanding subsection (c), the tax rate imposed by the
328+30 fiscal body of Knox County under this chapter may not exceed five
329+31 percent (5%), or, if the county fiscal body increases the tax rate to
330+32 more than six percent (6%) under subsection (c), may not exceed
331+33 seven percent (7%), if either of the following apply:
332+34 (1) The Grouseland Foundation, Inc., is dissolved.
333+35 (2) Tours of the territorial mansion and presidential site of
334+36 William Henry Harrison are no longer provided.
335+37 (e) The tax shall be imposed, paid, and collected in the same manner
336+38 as the state gross retail tax is imposed, paid, and collected under
337+39 IC 6-2.5.
338+40 SECTION 6. IC 6-9-53-5, AS AMENDED BY THE TECHNICAL
339+41 CORRECTIONS BILL OF THE 2024 GENERAL ASSEMBLY, IS
340+42 AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON
341+ES 238—LS 6564/DI 120 8
342+1 PASSAGE]: Sec. 5. The amounts received from the tax imposed under
343+2 this chapter shall be paid monthly by the treasurer of state upon
344+3 warrants issued by the auditor of state comptroller as follows:
345+4 (1) If the tax rate imposed under section 3 of this chapter is:
346+5 (A) five percent (5%) or less; or
347+6 (B) during the period that an increase under section 3(c) of
348+7 this chapter is in effect, seven percent (7%) or less;
349+8 all amounts received from the tax shall be paid to the county
350+9 treasurer.
351+10 (2) If the tax rate imposed under section 3 of this chapter is more
352+11 than five percent (5%), or, during the period that an increase
353+12 under section 3(c) of this chapter is in effect, more than seven
354+13 percent (7%), amounts received from the tax shall be allocated
355+14 and paid as follows:
356+15 (A) The amount received from the tax as a result of a five
357+16 percent (5%) rate, or, during the period that an increase
358+17 under section 3(c) of this chapter is in effect, as a result of
359+18 a seven percent (7%) rate, shall be allocated and paid to the
360+19 county treasurer.
361+20 (B) The amount received from the tax that exceeds the amount
362+21 under clause (A) shall be allocated and paid to the Grouseland
363+22 Foundation, Inc.
364+23 SECTION 7. An emergency is declared for this act.
365+ES 238—LS 6564/DI 120 9
366+COMMITTEE REPORT
367+Madam President: The Senate Committee on Tax and Fiscal Policy,
368+to which was referred Senate Bill No. 238, has had the same under
369+consideration and begs leave to report the same back to the Senate with
370+the recommendation that said bill DO PASS.
371+ (Reference is to SB 238 as introduced.)
372+
373+HOLDMAN, Chairperson
374+Committee Vote: Yeas 14, Nays 0
375+_____
376+SENATE MOTION
377+Madam President: I move that Senate Bill 238 be amended to read
378+as follows:
379+Page 1, delete line 17.
380+Page 2, delete lines 1 through 4, begin a new paragraph and insert:
381+"(b) The tax shall be imposed at the rate of four percent (4%) on the
31382 gross income derived from lodging income only. Subject to subsection
32383 (g), the county council may increase the tax rate to five percent (5%).
33384 eight percent (8%). The tax is in addition to the state gross retail tax
34-imposed on such persons by IC 6-2.5.
35-(c) The county fiscal body may adopt an ordinance to require that
385+imposed on such persons by IC 6-2.5.".
386+Page 2, between lines 30 and 31, begin a new paragraph and insert:
387+"(g) This subsection applies only if the county council increases
388+the tax rate to more than five percent (5%). The portion of the tax
389+rate that exceeds five percent (5%) shall expire on December 31,
390+2045.".
391+(Reference is to SB 238 as printed January 24, 2024.)
392+MAXWELL
393+_____
394+COMMITTEE REPORT
395+Mr. Speaker: Your Committee on Ways and Means, to which was
396+referred Senate Bill 238, has had the same under consideration and
397+begs leave to report the same back to the House with the
398+recommendation that said bill be amended as follows:
399+Page 2, between lines 34 and 35, begin a new paragraph and insert:
400+ES 238—LS 6564/DI 120 10
401+"SECTION 2. IC 6-9-18-3, AS AMENDED BY THE TECHNICAL
402+CORRECTIONS BILL OF THE 2024 GENERAL ASSEMBLY, IS
403+AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON
404+PASSAGE]: Sec. 3. (a) The fiscal body of a county may levy a tax on
405+every person engaged in the business of renting or furnishing, for
406+periods of less than thirty (30) days, any room or rooms, lodgings, or
407+accommodations in any:
408+(1) hotel;
409+(2) motel;
410+(3) boat motel;
411+(4) inn;
412+(5) college or university memorial union;
413+(6) college or university residence hall or dormitory; or
414+(7) tourist cabin;
415+located in the county.
416+(b) The tax does not apply to gross income received in a transaction
417+in which:
418+(1) a student rents lodgings in a college or university residence
419+hall while that student participates in a course of study for which
420+the student receives college credit from a college or university
421+located in the county; or
422+(2) a person rents a room, lodging, or accommodations for a
423+period of thirty (30) days or more.
424+(c) The tax may not exceed:
425+(1) the rate of five percent (5%) in a county other than a county
426+subject to subdivision (2), (3), or (4);
427+(2) after June 30, 2019, and except as provided in section 6.7 of
428+this chapter, the rate of eight percent (8%) in Howard County;
429+(3) after June 30, 2021, the rate of nine percent (9%) in Daviess
430+County; or
431+(4) after June 30, 2023, the rate of eight percent (8%) in Parke
432+County.
433+The tax is imposed on the gross retail income derived from lodging
434+income only and is in addition to the state gross retail tax imposed
435+under IC 6-2.5.
436+(d) The county fiscal body may adopt an ordinance to require that
36437 the tax shall be paid monthly to the county treasurer. If such an
37-SEA 238 — CC 1 2
38438 ordinance is adopted, the tax shall be paid to the county treasurer not
39439 more than twenty (20) days after the end of the month the tax is
40440 collected. If such an ordinance is not adopted, the tax shall be imposed,
41441 paid, and collected in exactly the same manner as the state gross retail
42-tax is imposed, paid, and collected pursuant to IC 6-2.5.
43-(d) All of the provisions of IC 6-2.5 relating to rights, duties,
442+tax is imposed, paid, and collected under IC 6-2.5.
443+ES 238—LS 6564/DI 120 11
444+(e) All of the provisions of IC 6-2.5 relating to rights, duties,
44445 liabilities, procedures, penalties, definitions, exemptions, and
45-administration shall be applicable to the imposition and administration
46-of the tax imposed by this section except to the extent such provisions
446+administration are applicable to the imposition and administration of
447+the tax imposed under this section except to the extent those provisions
47448 are in conflict or inconsistent with the specific provisions of this
48-chapter or the requirements of the county treasurer. Specifically and not
49-in limitation of the foregoing sentence, the terms "person" and "gross
50-retail income" have the same meaning in this section as they have in
51-IC 6-2.5, except that "person" does not include state supported
52-educational institutions.
53-(e) If the tax is paid to the department of state revenue, the returns
54-to be filed for the payment of the tax under this section may be either
55-a separate return or may be combined with the return filed for the
56-payment of the state gross retail tax, as the department of state revenue
57-may by rule determine.
449+chapter or the requirements of the county treasurer. If the tax is paid to
450+the department of state revenue, the return to be filed for the payment
451+of the tax under this section may be either a separate return or may be
452+combined with the return filed for the payment of the state gross retail
453+tax as the department of state revenue may, by rule, determine.
58454 (f) If the tax is paid to the department of state revenue, the amounts
59-received from such tax shall be paid quarterly by the treasurer of state
60-to the county treasurer upon warrants issued by the auditor of state
61-comptroller.
62-(g) This subsection applies only if the county council increases
63-the tax rate to more than five percent (5%). The portion of the tax
64-rate that exceeds five percent (5%) shall expire on December 31,
65-2045.
66-SECTION 2. IC 6-9-19-3, AS AMENDED BY THE TECHNICAL
455+received from the tax imposed under this section shall be paid monthly
456+by the treasurer of state to the county treasurer upon warrants issued by
457+the auditor of state comptroller.
458+SECTION 3. IC 6-9-18-6.7 IS ADDED TO THE INDIANA CODE
459+AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE
460+UPON PASSAGE]: Sec. 6.7. (a) This section applies only to Howard
461+County.
462+(b) This section applies only to rooms, lodgings, or
463+accommodations located within:
464+(1) an inn;
465+(2) a hotel; or
466+(3) a motel.
467+(c) As used in this section, "innkeeper's tax" means the tax that
468+except as provided in this section is imposed on a person engaged
469+in the business of renting or furnishing any rooms, lodgings, or
470+accommodations for a duration of less than thirty (30) days.
471+(d) As used in this section, "person" means an individual, a
472+corporation, a limited liability company, a partnership, a
473+marketplace facilitator under IC 6-9-29-6, or any other legal entity.
474+(e) The county fiscal body may adopt an ordinance to extend the
475+thirty (30) day duration described in subsection (c) for existing or
476+newly built inns, hotels, or motels while the ordinance is in effect.
477+(f) An ordinance adopted under this section does not apply to a
478+person that, prior to January 1, 2024, rented or furnished rooms,
479+lodgings, or accommodations that were not subject to the
480+innkeeper's tax because the rental or furnishing period exceeded
481+the thirty (30) day duration described in subsection (c).
482+(g) An ordinance adopted under this section:
483+(1) may not become effective until after April 30, 2024; and
484+(2) must expire before July 1, 2025.
485+(h) An ordinance adopted under this section must become
486+ES 238—LS 6564/DI 120 12
487+effective on the first day of a month and must expire on the last day
488+of a month.
489+(i) If the county fiscal body adopts an ordinance under this
490+section, the county fiscal body shall reduce the innkeeper's tax rate
491+for any person subject to the innkeeper's tax rate from the current
492+rate of eight percent (8%) to the rate of six percent (6%),
493+beginning with the month that the ordinance becomes effective and
494+effective until the ordinance expires.
495+(j) Beginning with the first month after an ordinance under this
496+section expires, the county fiscal body may return the innkeeper's
497+tax rate for any person subject to the innkeeper's tax to a
498+maximum rate of eight percent (8%) as described in section 3(c)(2)
499+of this chapter.
500+(k) If the county fiscal body adopts an ordinance under this
501+section, the county fiscal body shall:
502+(1) specify the effective date of the ordinance to provide that
503+the ordinance does not take effect before May 1, 2024;
504+(2) specify that the ordinance will expire before July 1, 2025;
505+and
506+(3) immediately send a certified copy of the ordinance to the
507+commissioner of the department of state revenue.
508+The extension of the duration of renting and furnishing any room,
509+lodgings, or accommodations for which an innkeeper's tax may be
510+imposed in an ordinance adopted under this section continues in
511+effect unless the extension is rescinded.
512+(l) If the county fiscal body does not immediately send a
513+certified copy of the ordinance to the commissioner of the
514+department of state revenue as required under subsection (k), the
515+department of state revenue shall treat an extension of the duration
516+under this section for which an innkeeper's tax is imposed as
517+having been adopted on the later of:
518+(1) the first day of the month that is not less than thirty (30)
519+days after the ordinance is sent to the commissioner of the
520+department of state revenue; or
521+(2) the effective date specified in the ordinance.
522+The department of state revenue shall collect the tax imposed on
523+the days subject to an ordinance adopted under this section unless
524+the extension exceeds the maximum period allowable under this
525+section.
526+(m) If an ordinance does not specify an effective date, the
527+ordinance shall be considered effective on the earliest date
528+allowable under this section.
529+ES 238—LS 6564/DI 120 13
530+SECTION 4. IC 6-9-19-3, AS AMENDED BY THE TECHNICAL
67531 CORRECTIONS BILL OF THE 2024 GENERAL ASSEMBLY, IS
68532 AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON
69533 PASSAGE]: Sec. 3. (a) The fiscal body of a county may levy a tax on
70534 every person engaged in the business of renting or furnishing, for
71535 periods of less than thirty (30) days, any room or rooms, lodgings, or
72536 accommodations in any:
73537 (1) hotel;
74538 (2) motel;
75539 (3) inn; or
76540 (4) tourist cabin;
77541 that has thirty (30) or more rooms for rent and is located in the county.
78542 (b) The tax does not apply to gross income received in a transaction
79543 in which:
80-SEA 238 — CC 1 3
81544 (1) a student rents lodgings in a college or university residence
82545 hall while that student participates in a course of study for which
83546 the student receives college credit from a college or university
84547 located in the county; or
85548 (2) a person rents a room, lodging, or accommodations for a
86549 period of thirty (30) days or more.
87-(c) Subject to subsection (g), the tax may not exceed the rate of
88-five percent (5%) eight percent (8%) on the gross retail income
89-derived from lodging income only and is in addition to the state gross
90-retail tax imposed under IC 6-2.5.
550+(c) The tax may not exceed the rate of five percent (5%) eight
551+percent (8%) on the gross retail income derived from lodging income
552+only and is in addition to the state gross retail tax imposed under
553+IC 6-2.5.
91554 (d) The county fiscal body may adopt an ordinance to require that
92555 the tax shall be paid monthly to the county treasurer. If such an
93556 ordinance is adopted, the tax shall be paid to the county treasurer not
94557 more than twenty (20) days after the end of the month the tax is
95558 collected. If such an ordinance is not adopted, the tax shall be imposed,
96559 paid, and collected in exactly the same manner as the state gross retail
97560 tax is imposed, paid, and collected under IC 6-2.5.
98561 (e) All of the provisions of IC 6-2.5 relating to rights, duties,
99562 liabilities, procedures, penalties, definitions, exemptions, and
100563 administration are applicable to the imposition and administration of
101564 the tax imposed under this section except to the extent those provisions
102565 are in conflict or inconsistent with the specific provisions of this
103566 chapter or the requirements of the county treasurer. If the tax is paid to
104567 the department of state revenue, the return to be filed for the payment
105568 of the tax under this section may be either a separate return or may be
106569 combined with the return filed for the payment of the state gross retail
107570 tax as the department of state revenue may, by rule, determine.
108571 (f) If the tax is paid to the department of state revenue, the taxes the
572+ES 238—LS 6564/DI 120 14
109573 department of state revenue receives under this section during a month
110574 shall be paid, by the end of the next succeeding month, to the county
111575 treasurer upon warrants issued by the auditor of state comptroller.
112-(g) This subsection applies only if the county fiscal body
113-increases the tax rate to more than five percent (5%). The portion
114-of the tax rate that exceeds five percent (5%) shall expire on
115-December 31, 2045.
116-SECTION 3. IC 6-9-53-3, AS ADDED BY P.L.290-2019,
576+SECTION 5. IC 6-9-53-3, AS ADDED BY P.L.290-2019,
117577 SECTION 16, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
118578 UPON PASSAGE]: Sec. 3. (a) The fiscal body of the county may levy
119579 a tax on every person engaged in the business of renting or furnishing,
120580 for periods of less than thirty (30) days, any room or rooms, lodgings,
121581 or accommodations in any:
122582 (1) hotel;
123-SEA 238 — CC 1 4
124583 (2) motel;
125584 (3) boat motel;
126585 (4) inn;
127586 (5) college or university memorial union;
128587 (6) college or university residence hall or dormitory; or
129588 (7) tourist cabin;
130589 located in the county.
131590 (b) The tax does not apply to gross income received in a transaction
132591 in which:
133592 (1) a student rents lodgings in a college or university residence
134593 hall while that student participates in a course of study for which
135594 the student receives college credit from a college or university
136595 located in the county; or
137596 (2) a person rents a room, lodging, or accommodations for a
138597 period of thirty (30) days or more.
139598 (c) Subject to subsection (d), the tax may not exceed the rate of six
140599 eight percent (6%) (8%) on the gross retail income derived from
141600 lodging income only and is in addition to the state gross retail tax
142-imposed under IC 6-2.5. However, if the county fiscal body increases
143-the tax rate to more than six percent (6%), the portion of the tax
144-rate that exceeds six percent (6%) shall expire on December 31,
145-2045.
601+imposed under IC 6-2.5.
146602 (d) Notwithstanding subsection (c), the tax rate imposed by the
147603 fiscal body of Knox County under this chapter may not exceed five
148-percent (5%), or, if the county fiscal body increases the tax rate to
149-more than six percent (6%) under subsection (c), may not exceed
150-seven percent (7%), if either of the following apply:
604+seven percent (5%) (7%) if either of the following apply:
151605 (1) The Grouseland Foundation, Inc., is dissolved.
152606 (2) Tours of the territorial mansion and presidential site of
153607 William Henry Harrison are no longer provided.
154608 (e) The tax shall be imposed, paid, and collected in the same manner
155609 as the state gross retail tax is imposed, paid, and collected under
156610 IC 6-2.5.
157-SECTION 4. IC 6-9-53-5, AS AMENDED BY THE TECHNICAL
611+SECTION 6. IC 6-9-53-5, AS AMENDED BY THE TECHNICAL
612+CORRECTIONS BILL OF THE 2024 GENERAL ASSEMBLY, IS
613+AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON
614+PASSAGE]: Sec. 5. The amounts received from the tax imposed under
615+ES 238—LS 6564/DI 120 15
616+this chapter shall be paid monthly by the treasurer of state upon
617+warrants issued by the auditor of state comptroller as follows:
618+(1) If the tax rate imposed under section 3 of this chapter is five
619+seven percent (5%) (7%) or less, all amounts received from the
620+tax shall be paid to the county treasurer.
621+(2) If the tax rate imposed under section 3 of this chapter is more
622+than five seven percent (5%), (7%), amounts received from the
623+tax shall be allocated and paid as follows:
624+(A) The amount received from the tax as a result of a five
625+seven percent (5%) (7%) rate shall be allocated and paid to
626+the county treasurer.
627+(B) The amount received from the tax that exceeds the amount
628+under clause (A) shall be allocated and paid to the Grouseland
629+Foundation, Inc.".
630+Renumber all SECTIONS consecutively.
631+and when so amended that said bill do pass.
632+(Reference is to SB 238 as reprinted January 26, 2024.)
633+THOMPSON
634+Committee Vote: yeas 17, nays 3.
635+_____
636+HOUSE MOTION
637+Mr. Speaker: I move that Engrossed Senate Bill 238 be amended to
638+read as follows:
639+Page 6, line 13, after "(c)" delete "The" and insert "Subject to
640+subsection (g), the".
641+Page 6, between lines 37 and 38, begin a new paragraph and insert:
642+"(g) This subsection applies only if the county fiscal body
643+increases the tax rate to more than five percent (5%). The portion
644+of the tax rate that exceeds five percent (5%) shall expire on
645+December 31, 2045.".
646+Page 7, line 21, after "IC 6-2.5." insert "However, if the county
647+fiscal body increases the tax rate to more than six percent (6%),
648+the portion of the tax rate that exceeds six percent (6%) shall
649+expire on December 31, 2045.".
650+Page 7, line 23, reset in roman "five".
651+Page 7, line 24, delete "seven".
652+ES 238—LS 6564/DI 120 16
653+Page 7, line 24, reset in roman "(5%)".
654+Page 7, line 24, delete "(7%)" and insert ", or, if the county fiscal
655+body increases the tax rate to more than six percent (6%) under
656+subsection (c), may not exceed seven percent (7%),".
657+Page 7, delete lines 31 through 42, begin a new paragraph and
658+insert:
659+"SECTION 6. IC 6-9-53-5, AS AMENDED BY THE TECHNICAL
158660 CORRECTIONS BILL OF THE 2024 GENERAL ASSEMBLY, IS
159661 AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON
160662 PASSAGE]: Sec. 5. The amounts received from the tax imposed under
161663 this chapter shall be paid monthly by the treasurer of state upon
162664 warrants issued by the auditor of state comptroller as follows:
163665 (1) If the tax rate imposed under section 3 of this chapter is:
164666 (A) five percent (5%) or less; or
165667 (B) during the period that an increase under section 3(c) of
166-SEA 238 — CC 1 5
167668 this chapter is in effect, seven percent (7%) or less;
168669 all amounts received from the tax shall be paid to the county
169670 treasurer.
170671 (2) If the tax rate imposed under section 3 of this chapter is more
171672 than five percent (5%), or, during the period that an increase
172673 under section 3(c) of this chapter is in effect, more than seven
173674 percent (7%), amounts received from the tax shall be allocated
174675 and paid as follows:
175676 (A) The amount received from the tax as a result of a five
176677 percent (5%) rate, or, during the period that an increase
177678 under section 3(c) of this chapter is in effect, as a result of
178679 a seven percent (7%) rate, shall be allocated and paid to the
179680 county treasurer.
180681 (B) The amount received from the tax that exceeds the amount
181682 under clause (A) shall be allocated and paid to the Grouseland
182-Foundation, Inc.
183-SECTION 5. An emergency is declared for this act.
184-SEA 238 — CC 1 President of the Senate
185-President Pro Tempore
186-Speaker of the House of Representatives
187-Governor of the State of Indiana
188-Date: Time:
189-SEA 238 — CC 1
683+Foundation, Inc.".
684+Page 8, delete lines 1 through 6.
685+(Reference is to ESB 238 as printed February 22, 2024.)
686+THOMPSON
687+ES 238—LS 6564/DI 120