Introduced Version
HOUSE BILL No. 1365
_____
DIGEST OF INTRODUCED BILL
Citations Affected: IC 6-9-2.
Synopsis: Lake County innkeeper's tax. Provides that the Lake County
innkeeper's tax applies to the renting or furnishing of rooms for periods
of less than 30 consecutive days by the same party in the same room.
Provides that an agent of the county treasurer may exercise certain
powers assigned to the county treasurer under the Lake County
innkeeper's tax law. Provides that 11.67% of the first $1,200,000 of
revenue received from the Lake County innkeeper's tax that is not
transferred to the city of Gary shall be allocated to a local matching
grant fund. Specifies that money in the local matching grant fund may
be distributed only for major destination events. Deletes provisions
distributing a corresponding percentage of the tax to certain
municipalities for convention facility marketing, sales, and public
relations programs and for tourism and economic development
projects. Provides that the Lake County innkeeper's tax revenue
transferred to Purdue University-Calumet may be used by the
university for education programs (rather than nursing education
programs, under current law). Deletes the requirement that the budget
of the Lake County convention and visitor bureau (bureau) must be
submitted to the department of local government finance and placed on
file with the county auditor. Removes requirements that the bureau may
use funds under its control only for events in the county.
Effective: January 1, 2014.
Soliday
January 22, 2013, read first time and referred to Committee on Ways and Means.
Introduced
First Regular Session 118th General Assembly (2013)
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HOUSE BILL No. 1365
A BILL FOR AN ACT to amend the Indiana Code concerning
taxation.
Be it enacted by the General Assembly of the State of Indiana:
SOURCE: IC 6-9-2-1; (13)IN1365.1.1. -->
SECTION 1. IC 6-9-2-1, AS AMENDED BY P.L.172-2011,
SECTION 90, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2014]: Sec. 1. (a) A county having a population of more
than four hundred thousand (400,000) but less than seven hundred
thousand (700,000) that establishes a medical center development
agency pursuant to IC 16-23.5-2 may levy each year a tax on every
person engaged in the business of renting or furnishing, for periods of
less than thirty (30)
consecutive days by the same party in the same
room, any room or rooms, lodgings, or accommodations, in any hotel,
motel, inn, tourist camp, tourist cabin, or any other place in which
rooms, lodgings, or accommodations are regularly furnished for a
consideration.
(b) Such tax shall be at a rate of five percent (5%) on the gross retail
income derived therefrom and is in addition to the state gross retail tax
imposed on the retail transaction.
(c) The county fiscal body may adopt an ordinance to require that
the tax be reported on forms approved by the county treasurer
or its
agent and that the tax shall be paid monthly to the county treasurer or
its agent. If such an ordinance is adopted, the tax shall be paid to the
county treasurer or its agent not more than twenty (20) days after the
end of the month the tax is collected. If such an ordinance is not
adopted, the tax shall be imposed, paid, and collected in exactly the
same manner as the state gross retail tax is imposed, paid, and
collected.
(d) All of the provisions of the state gross retail tax (IC 6-2.5)
relating to rights, duties, liabilities, procedures, penalties, definitions,
exemptions, and administration shall be applicable to the imposition
and administration of the tax imposed by this section except to the
extent such provisions are in conflict or inconsistent with the specific
provisions of this chapter or the requirements of the county treasurer
or its agent. Specifically and not in limitation of the foregoing
sentence, the terms "person" and "gross retail income" shall have the
same meaning in this section as they have in the state gross retail tax
(IC 6-2.5). If the tax is paid to the department of state revenue, the
returns to be filed for the payment of the tax under this section may be
either a separate return or may be combined with the return filed for the
payment of the state gross retail tax as the department of state revenue
may, by rule, determine.
(e) If the tax is paid to the department of state revenue, the amounts
received from the tax shall be paid by the end of the next succeeding
month by the treasurer of state to the county treasurer or its agent upon
warrants issued by the auditor of state. The county treasurer or its
agent shall deposit the revenue received under this chapter as provided
in section 2 of this chapter.
SOURCE: IC 6-9-2-2; (13)IN1365.1.2. -->
SECTION 2. IC 6-9-2-2, AS AMENDED BY P.L.137-2012,
SECTION 110, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JANUARY 1, 2014]: Sec. 2. (a) The revenue received
by the county treasurer
or its agent under this chapter shall be
allocated to the Lake County convention and visitor bureau, Indiana
University-Northwest, Purdue University-Calumet, municipal public
safety departments,
and municipal physical and economic development
divisions
and the cities and towns in the county as provided in this
section. Subsections (b) through
(g) (f) do not apply to the distribution
of revenue received under section 1 of this chapter from hotels, motels,
inns, tourist camps, tourist cabins, and other lodgings or
accommodations built or refurbished after June 30, 1993, that are
located in the city of Gary.
The Lake County convention and visitor
bureau shall establish a local matching grant fund for purposes of
subsection (d).
(b) The Lake County convention and visitor bureau shall establish
a convention, tourism, and visitor promotion fund (referred to in this
chapter as the "promotion fund"). The county treasurer
or its agent
shall transfer to the Lake County convention and visitor bureau for
deposit in the promotion fund thirty-five percent (35%) of the first one
million two hundred thousand dollars ($1,200,000) of revenue received
from the tax imposed under this chapter in each year. The promotion
fund consists of:
(1) money in the promotion fund on June 30, 2005;
(2) revenue deposited in the promotion fund under this subsection
after June 30, 2005; and
(3) investment income earned on the promotion fund's assets.
Money in the funds established by the bureau may be expended to
promote and encourage conventions, trade shows, special events,
recreation, and visitors. Money may be paid from the funds established
by the bureau, by claim in the same manner as municipalities may pay
claims under IC 5-11-10-1.6.
(c) This subsection applies to the first one million two hundred
thousand dollars ($1,200,000) of revenue received from the tax
imposed under this chapter in each year. During each year, the county
treasurer
or its agent shall transfer to Indiana University-Northwest
forty-four and thirty-three hundredths percent (44.33%) of the revenue
received under this chapter for that year to be used as follows:
(1) Seventy-five percent (75%) of the revenue received under this
subsection may be used only for the university's medical
education programs.
(2) Twenty-five percent (25%) of the revenue received under this
subsection may be used only for the university's allied health
education programs.
(d) This subsection applies to the first one million two hundred
thousand dollars ($1,200,000) of revenue received from the tax
imposed under this chapter in each year. During each year, the county
treasurer
or its agent shall allocate
among the cities and towns
throughout the county nine percent (9%) eleven and sixty-seven
hundredths percent (11.67%) of the revenue received under this
chapter for that year
as follows: to the local matching grant fund.
The money allocated to the local matching grant fund under this
subsection may be distributed only for major destination events
that generate substantial hotel or restaurant visitation within the
municipality, county, or region hosting such an event or that
otherwise generate substantial positive exposure for the
municipality, county, or region hosting such an event. The
convention and visitor bureau shall award grants from the local
matching grant fund based on guidelines established by the bureau.
(1) Ten percent (10%) of the revenue covered by this subsection
shall be distributed to cities having a population of more than
eighty thousand (80,000) but less than eighty thousand four
hundred (80,400).
(2) Ten percent (10%) of the revenue covered by this subsection
shall be distributed to cities having a population of more than
eighty thousand five hundred (80,500) but less than one hundred
thousand (100,000).
(3) Ten percent (10%) of the revenue covered by this subsection
shall be distributed to cities having a population of more than
twenty-nine thousand six hundred (29,600) but less than
twenty-nine thousand nine hundred (29,900).
(4) Seventy percent (70%) of the revenue covered by this
subsection shall be distributed in equal amounts to each town and
each city not receiving a distribution under subdivisions (1)
through (3).
The money distributed under this subsection may be used only for
tourism and economic development projects. The county treasurer shall
make the distributions on or before December 1 of each year.
(e) This subsection applies to the first one million two hundred
thousand dollars ($1,200,000) of revenue received from the tax
imposed under this chapter in each year. During each year, the county
treasurer or its agent shall transfer to Purdue University-Calumet nine
percent (9%) of the revenue received under this chapter for that year.
The money received by Purdue University-Calumet may be used by the
university only for nursing education programs.
(f) This subsection applies to the first one million two hundred
thousand dollars ($1,200,000) of revenue received from the tax
imposed under this chapter in each year. During each year, the county
treasurer shall transfer two and sixty-seven hundredths percent (2.67%)
of the revenue received under this chapter for that year to the following
cities:
(1) Fifty percent (50%) of the revenue covered by this subsection
shall be transferred to cities having a population of more than
eighty thousand (80,000) but less than eighty thousand four
hundred (80,400).
(2) Fifty percent (50%) of the revenue covered by this subsection
shall be transferred to cities having a population of more than
eighty thousand five hundred (80,500) but less than one hundred
thousand (100,000).
Money transferred under this subsection may be used only for
convention facilities located within the city. In addition, the money may
be used only for facility marketing, sales, and public relations
programs. Money transferred under this subsection may not be used for
salaries, facility operating costs, or capital expenditures related to the
convention facilities. The county treasurer shall make the transfers on
or before December 1 of each year.
(g) (f) This subsection applies to the revenue received from the tax
imposed under this chapter in each year that exceeds one million two
hundred thousand dollars ($1,200,000). During each year, the county
treasurer
or its agent shall distribute money in the promotion fund as
follows:
(1) Eighty-five percent (85%) of the revenue covered by this
subsection shall be deposited in the convention, tourism, and
visitor promotion fund. The money deposited in the fund under
this subdivision may be used only for the purposes for which
other money in the fund may be used.
(2) Five percent (5%) of the revenue covered by this subsection
shall be transferred to Purdue University-Calumet. The money
received by Purdue University-Calumet under this subdivision
may be used by the university
only for
nursing education
programs.
(3) Five percent (5%) of the revenue covered by this subsection
shall be transferred to Indiana University-Northwest. The money
received by Indiana University-Northwest under this subdivision
may be used only for the university's medical education programs.
(4) Five percent (5%) of the revenue covered by this subsection
shall be transferred to Indiana University-Northwest. The money
received by Indiana University-Northwest under this subdivision
may be used only for the university's allied health education
programs.
(h) (g) This subsection applies only to the distribution of revenue
received from the tax imposed under section 1 of this chapter from
hotels, motels, inns, tourist camps, tourist cabins, and other lodgings or
accommodations built or refurbished after June 30, 1993, that are
located in the city of Gary. During each year, the county treasurer
or its
agent shall transfer:
(1) seventy-five percent (75%) of the revenues under this
subsection to the department of public safety; and
(2) twenty-five percent (25%) of the revenues under this
subsection to the division of physical and economic development;
of the city of Gary.
(i) (h) The Lake County convention and visitor bureau shall assist
the county treasurer, as needed, with the calculation of the amounts that
must be deposited and transferred under this section.
SOURCE: IC 6-9-2-4; (13)IN1365.1.3. -->
SECTION 3. IC 6-9-2-4, AS AMENDED BY P.L.172-2011,
SECTION 93, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2014]: Sec. 4. (a) The bureau may:
(1) accept and use gifts, grants, and contributions from any public
or private source, under terms and conditions that the bureau
considers necessary and desirable;
(2) sue and be sued;
(3) enter into contracts and agreements;
(4) make rules necessary for the conduct of its business and the
accomplishment of its purposes;
(5) receive and approve, alter, or reject requests and proposals for
funding by corporations qualified under subdivision (6);
(6) after its approval of a proposal, transfer money from any fund
established by the bureau, the promotion fund, or the alternate
revenue fund to any Indiana nonprofit corporation to promote and
encourage conventions, trade shows, visitors, or special events; in
the county;
(7) require financial or other reports from any corporation that
receives funds under this chapter;
(8) enter into leases under IC 36-1-10 for the construction,
acquisition, and equipping of a visitor center; and
(9) exercise the power of eminent domain within the county to
acquire property to promote and encourage conventions, trade
shows, special events, recreation, and visitors. within the county.
(b) All expenses of the bureau shall be paid from funds established
by the bureau. Before December 20 of each year, the bureau shall
prepare a budget for expenditures during the following year. taking into
consideration the recommendations made by a corporation qualified
under subsection (a)(6). A budget prepared under this section must be
submitted to the department of local government finance and placed on
file with the county auditor.
(c) All money in the bureau's funds shall be deposited, held,
secured, invested, and paid in accordance with statutes relating to the
handling of public funds. The handling and expenditure of money in
the bureau's funds are subject to audit and supervision by the state
board of accounts.
SOURCE: IC 6-9-2-4.3; (13)IN1365.1.4. -->
SECTION 4. IC 6-9-2-4.3, AS AMENDED BY P.L.172-2011,
SECTION 94, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2014]: Sec. 4.3. (a) The Lake County convention and
visitor bureau shall establish a convention, tourism, and visitor
promotion alternate revenue fund (referred to in this chapter as the
"alternate revenue fund"). The bureau may deposit in the alternate
revenue fund all money received by the bureau after June 30, 2005, that
is not required to be deposited in the promotion fund under section 2
of this chapter or a fund established by the bureau, including
appropriations, gifts, grants, membership dues, and contributions from
any public or private source.
(b) The bureau may, without appropriation by the county council,
expend money from the alternate revenue fund to promote and
encourage conventions, trade shows, visitors, special events, sporting
events, and exhibitions. in the county. Money may be paid from the
alternate revenue fund by claim in the same manner as municipalities
may pay claims under IC 5-11-10-1.6.
(c) All money in the alternate revenue fund shall be deposited, held,
secured, invested, and paid in accordance with statutes relating to the
handling of public funds. The handling and expenditure of money in
the alternate revenue fund is subject to audit and supervision by the
state board of accounts.
(d) Money derived from the taxes imposed under IC 4-33-12 and
IC 4-33-13 may not be transferred to the alternate revenue fund.
SOURCE: IC 6-9-2-4.5; (13)IN1365.1.5. -->
SECTION 5. IC 6-9-2-4.5, AS AMENDED BY P.L.168-2005,
SECTION 5, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2014]: Sec. 4.5. The bureau may enter into an agreement
under which amounts deposited in, or to be deposited in, the promotion
fund or the alternate revenue fund, or both, are pledged to payment of
obligations, including leases entered into under IC 36-1-10, issued to
finance the construction, acquisition, and equipping of a visitor center
to promote and encourage conventions, trade shows, special events,
recreation, and visitors. within the county.
SOURCE: IC 6-9-2-4.7; (13)IN1365.1.6. -->
SECTION 6. IC 6-9-2-4.7 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2014]: Sec. 4.7. (a) The
bureau may issue bonds, enter into leases, or incur other obligations to:
(1) pay the costs incurred in the financing, construction,
acquisition, and equipping of a visitor center to promote and
encourage conventions, trade shows, special events, recreation,
and visitors; within the county;
(2) reimburse itself or any nonprofit corporation for any money
advanced to pay those costs; or
(3) refund bonds issued or other obligations incurred under this
chapter.
(b) Bonds issued or obligations incurred under this section:
(1) are payable solely from the money provided in this chapter;
(2) may, in the discretion of the bureau, be sold at a negotiated
sale or under IC 5-1-11 and IC 5-3-1; and
(3) must be authorized by a resolution of the bureau.
(c) Leases entered into under this section:
(1) may be for a term not to exceed fifty (50) years;
(2) may provide for payments from revenues under this chapter,
any other revenues available to the bureau, or any combination of
these sources;
(3) may provide that payments by the bureau to the lessor are
required only to the extent and only for the time that the lessor is
able to provide the leased facilities in accordance with the lease;
(4) must be based upon the value of the facilities leased; and
(5) may not create a debt of the county for purposes of the
Constitution of the State of Indiana.
(d) A lease may be entered into by the bureau only after a public
hearing:
(1) for which notice has been given in accordance with IC 5-3-1;
and
(2) at which all interested parties are provided the opportunity to
be heard.
(e) After the public hearing, the bureau may approve the execution
of the lease only if the bureau finds that the services to be provided
throughout the life of the lease will serve the public purposes for which
the bureau was created and that the execution of the lease is in the best
interests of the residents of the county.
(f) Upon execution of a lease under this section, the bureau shall
publish notice of the execution of the lease in accordance with
IC 5-3-1.
(g) An action to contest the validity of bonds issued or leases
entered into under this section must be brought within thirty (30) days
after the adoption of a bond resolution or notice of the execution and
approval of the lease, as the case may be.
SOURCE: IC 6-9-2-5.5; (13)IN1365.1.7. -->
SECTION 7. IC 6-9-2-5.5 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2014]: Sec. 5.5. The financing
of the construction, acquisition, and equipping of a visitor center to
promote and encourage conventions, trade shows, special events,
recreation, and visitors within the county region serves a public
purpose and is of benefit to the general welfare of the county by
encouraging investment, job creation and retention, and economic
growth and diversity.
SOURCE: IC 6-9-2-9; (13)IN1365.1.8. -->
SECTION 8. IC 6-9-2-9, AS AMENDED BY P.L.172-2011,
SECTION 95, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2014]: Sec. 9. (a) The legislative body of a county that
imposes a tax under section 1 of this chapter shall annually prepare a
report concerning the disbursement and use of the money collected
under this chapter during the preceding calendar year. The report shall
be prepared before April 15 each year and shall be made available to
the public.
(b) If in any year an entity receiving money under this chapter fails
to provide the county legislative body with sufficient information, as
reasonably requested by the county legislative body:
(1) for the county legislative body to comply with this section;
and
(2) before the date specified by the county legislative body;
the county legislative body may direct the county treasurer or its agent
by resolution to stop deposits and transfers under this chapter to the
entity. When an entity provides the information that is the subject of
the resolution, the county legislative body shall as soon as practicable
direct the county treasurer or its agent, by resolution, to resume
making deposits and transfers to the entity, including any deposits and
transfers that would otherwise have been made to the entity during the
time that deposits and transfers were stopped under this subsection. A
copy of a resolution adopted under this subsection must be distributed
to the county treasurer or its agent and the entity that is the subject of
the resolution within ten (10) business days after the resolution is
adopted. The county treasurer or its agent shall comply with a
resolution adopted under this subsection.
SOURCE: IC 6-9-2-10; (13)IN1365.1.9. -->
SECTION 9. IC 6-9-2-10, AS ADDED BY P.L.168-2005,
SECTION 7, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2014]: Sec. 10. Employees of the convention and visitor
bureau created by section 3 of this chapter may participate in the group
health insurance, disability insurance, and life insurance programs
established:
(1) by the county government of the county described in section
1 of this chapter; and
(2) for the employees of the convention and visitor bureau
who
are not covered by another health insurance program.