Indiana’s Innkeeper’s Taxes
- Nov 14, 2014 | Gail Cole
The Indiana Department of Revenue has updated its departmental notice on county innkeeper’s taxes to reflect the fact that Starke County is changing the tax collection point to the county, effective December 1, 2014. Innkeeper’s taxes may be collected by individual counties or by the Indiana Department of Revenue.
All counties in Indiana are authorized to impose an innkeeper’s tax. 73 counties currently do so, and 53 do so under the uniform innkeeper’s tax statute under IC 6-9-18.
The remaining twenty counties impose innkeeper’s taxes but not under the uniform innkeeper’s statute. As a result, provisions may differ from county to county and from the uniform statute. Those counties are: Allen, Brown, Clark, Elkhart, Floyd, Hendricks, Howard, Jackson, Jefferson, Lake, LaPorte, Madison, Marion, Monroe, St. Joseph, Tippecanoe, Vanderburgh, Vigo, Wayne, and White. “Taxpayers with questions related to the innkeeper’s tax imposed in these counties should refer directly to the specific authorizing statute and ordinance imposing the tax.”
County innkeeper’s taxes are generally imposed on “those engaged in the business of renting or furnishing, for periods of fewer than 30 days, any room or rooms, lodgings, or accommodations in any hotel, motel, boat motel, inn, college or university memorial union, college or university residence hall or dormitory, or tourist cabin located in the county.” The tax does not apply to accommodations rented for periods of 30 days or longer.
Innkeeper’s taxes are similar to sales tax in that transactions not subject to sales tax are not subject to innkeeper’s tax--as when no consideration is exchanged for the transfer of property or the rental of a room. Additional information, including a list of all counties imposing innkeeper’s taxes (and rates and collection point), is available on the Indiana Department of Revenue website.
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