Indiana Innkeeper’s Tax Is Spreading
- Sales Tax Rate Changes
- Jan 27, 2016 | Gail Cole
All 92 counties in Indiana are authorized to impose a county innkeeper’s tax should they choose to adopt one. 75 counties now do. The most recent addition to club is Johnson County, which imposed a 5% county innkeeper’s tax effective January 1, 2016.
Innkeeper’s taxes are typically imposed and administered in a similar manner to sales tax. The tax is collected either by the Indiana Department of Revenue or the county that enacted the tax. Innkeeper’s taxes generally apply to “those engaged 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” (Indiana Department of Revenue Departmental Notice #40).
Counties are granted the authority to impose the innkeeper’s tax under the uniform statute. However, 20 counties “have authority apart from the uniform statute to impose innkeeper’s taxes. They are: Allen, Brown, Clark, Elkhart, Floyd, Hendricks, Howard, Jackson, Jefferson, Lake, LaPorte, Madison, Marion, Monroe, St. Joseph, Tippecanoe, Vanderburgh, Vigo, Wayne, and White. These counties may therefore have different provisions that could alter compliance requirements. Taxpayers are advised to refer to specific authorizing statutes or contact those counties for additional information.
Other recent changes:
- Spencer County increased its county innkeeper’s tax to 5%, effective January 1, 2015.
- Orange County imposed a 2% historical hotels supplemental tax, effective July 1, 2015.
- Starke County changed the collection point to the county, effective December 1, 2014.