HOUSE BILL No. 1531
DIGEST OF INTRODUCED BILL
Citations Affected: IC 6-9-40.
Synopsis: Fulton County innkeepers' tax. Permits Fulton County to
impose an innkeepers' tax of up to 6%. Provides for the distribution of
the county innkeepers' tax revenue.
Effective: July 1, 2007.
January 23, 2007, read first time and referred to Committee on Ways and Means.
First Regular Session 115th General Assembly (2007)
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HOUSE BILL No. 1531
A BILL FOR AN ACT to amend the Indiana Code concerning local
Be it enacted by the General Assembly of the State of Indiana:
SOURCE: IC 6-9-40; (07)IN1531.1.1. -->
SECTION 1. IC 6-9-40 IS ADDED TO THE INDIANA CODE AS
CHAPTER TO READ AS FOLLOWS [EFFECTIVE JULY
Chapter 40. Fulton County Innkeepers' Tax
Sec. 1. This chapter applies to a county having a population of
more than twenty thousand five hundred (20,500) but less than
twenty-one thousand (21,000).
Sec. 2. (a) The county council may levy a tax on every person
engaged in the business of renting or furnishing, for periods of less
than sixty (60) days, any room or rooms, lodgings, or
accommodations in any hotel, motel, inn, conference center, retreat
center, or tourist cabin located in the county. However, the county
council may not levy the tax on a person for engaging in the
business of providing campsites within a state or federal park or
forest. The tax may be imposed at any rate up to and including six
percent (6%). The tax shall be imposed on the gross retail income
derived from lodging income only and is in addition to the state
gross retail tax imposed on those persons by IC 6-2.5.
(b) The county fiscal body may adopt an ordinance to require
that the tax be reported on forms approved by the county treasurer
and that the tax shall be paid monthly to the county treasurer. If
such an ordinance is adopted, the tax shall be paid to the county
treasurer not later than twenty (20) days after the end of the month
the tax is collected.
(c) All the provisions of IC 6-2.5 relating to rights, duties,
liabilities, procedures, penalties, definitions, exemptions, and
administration apply to the imposition and administration of the
tax imposed under this section, except to the extent those
provisions are in conflict or inconsistent with the specific
provisions of this chapter or the requirements of the county
treasurer. Specifically and not in limitation of the foregoing
sentence, the terms "person" and "gross retail income" have the
same meaning in this section as they have in IC 6-2.5.
(d) The tax imposed under this section does not apply to the
renting or furnishing of rooms, lodgings, or accommodations to a
person for a period of sixty-one (61) days or more.
(e) If a tax is levied under this section, a person or an entity
collecting and timely remitting the tax is entitled to deduct and
retain from the amount of the tax otherwise required to be
remitted under this section a collection allowance equal to
eighty-three hundredths percent (0.83%) of the tax liability
accrued under this section during a reporting period.
Sec. 3. (a) The county treasurer shall establish a convention and
visitors fund. Except as provided in subsection (b), the county
treasurer shall deposit in the fund the tax revenues the county
treasurer receives under section 2 of this chapter. Money in the
fund may be expended only as provided in this chapter.
(b) The county treasurer is entitled to retain from the tax
revenues otherwise required to be deposited under subsection (a)
an amount equal to seventeen-hundredths percent (0.17%) of the
total amount of tax revenues required to be deposited under
subsection (a). The funds retained by the county treasurer under
this subsection may be expended only for the operating budget of
the county treasurer. Any funds:
(1) retained by the county treasurer under this subsection;
(2) not expended by the end of the fiscal year in which the
funds were retained;
revert to the county general fund.
Sec. 4. (a) Money in the fund established under section 3 of this
chapter shall be distributed as follows:
(1) Fifty percent (50%) to the county parks and recreation
department to carry out the purposes of the department.
(2) Fifty percent (50%) for the benefit of the citizens of the
county and their public institutions as determined by the
(b) The county council may:
(1) accept and use gifts, grants, and contributions from any
public or private source, under terms and conditions that the
county council considers necessary and desirable;
(2) sue and be sued;
(3) enter into contracts and agreements;
(4) make rules and regulations necessary for the conduct of its
business and the accomplishment of the council's purposes;
(5) receive and approve, alter, or reject requests and
proposals for funding by corporations under subdivision (6);
(6) after its approval of a proposal, transfer money quarterly
or less frequently from the fund established under section 3 of
this chapter to any nonprofit corporation to promote and
encourage convention and visitation development in the
(7) require financial or other reports from any corporation
that receives funds under this chapter.
Sec. 5. (a) A member of the county council who knowingly
approves the transfer of funds to any person not qualified under
this chapter to receive such a transfer, or approves a transfer for
a purpose not permitted under this chapter, commits a Class D
(b) A person who receives a transfer of funds under this chapter
and knowingly uses the funds for any purpose other than a
proposal approved by the county council commits a Class D felony.