LEGISLATIVE SERVICES AGENCY
OFFICE OF FISCAL AND MANAGEMENT ANALYSIS
FISCAL IMPACT STATEMENT
LS 7112 NOTE PREPARED: Jan 1, 2025
BILL NUMBER: HB 1215 BILL AMENDED:
SUBJECT: LaGrange County Innkeeper's Tax.
FIRST AUTHOR: Rep. Isa BILL STATUS: As Introduced
FIRST SPONSOR:
FUNDS AFFECTED: GENERAL IMPACT: Local
DEDICATED
FEDERAL
Summary of Legislation: This bill authorizes LaGrange County to increase the county's innkeeper's tax rate
from 5% to not more than 8% under the uniform innkeeper's tax statute.
Effective Date: Upon passage.
Explanation of State Expenditures:
Explanation of State Revenues:
Explanation of Local Expenditures:
Explanation of Local Revenues: This bill allows LaGrange County to increase the rate of the tax from 5%
to 8% beginning July 1, 2025. The table below shows the estimated revenue increase for CY 2025 through
CY 2027 with the tax rate change. Actual revenues may be lower than the estimated amounts listed to the
extent that consumer demand for lodging is reduced due to the price increase from the tax.
LaGrange County Innkeeper’s Tax Estimated Revenue Increase
CY 2025 CY 2026 CY 2027
$328,000 $664,000 $677,000
LaGrange County collected about $1.06 M in innkeeper's tax revenue in CY 2023. Under current law,
LaGrange County's innkeeper's tax revenue funds the county's Convention, Visitor, and Tourism Promotion
Fund.
State Agencies Affected:
Local Agencies Affected: LaGrange County.
HB 1215 1 Information Sources: Legislative Services Agency, Indiana Handbook of Taxes, Revenues, and
Appropriations, FY 2024; Department of State Revenue.
Fiscal Analyst: Abdulrahman Abdulkadri, 317-232-9852.
HB 1215 2