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)


PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana Constitution) is being amended, the text of the existing provision will appear in this style type, additions will appear in this style type, and deletions will appear in this style type.
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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.