Section 6-9-18-6.7 - Ordinance to extend the duration of the tax on lodging income in Howard County; tax rate(a) This section applies only to Howard County.(b) This section applies only to rooms, lodgings, or accommodations located within: (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.Added by P.L. 136-2024,SEC. 32, eff. 3/13/2024.