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The Journal Gazette

Wednesday, February 20, 2019 6:50 pm

Lawmakers seek to hike local lodging tax

NIKI KELLY | The Journal Gazette

INDIANAPOLIS – Allen County’s lodging tax could go up this year under a bill passed 67-31 by the Indiana House Wednesday.

House Bill 1402 makes changes to innkeepers’ and food and beverage taxes in 10 different counties, including Allen. It was co-authored by Rep. Phil GiaQuinta, D-Fort Wayne.

Rep. Mike Karickhoff, R-Kokomo, said local officials use these taxes to improve cities, towns and counties. In the past the requests are sometimes done individually and rarely pass. So this time lawmakers joined them together.

The Allen County language would allow the Allen County Council to increase the innkeeper's tax rate from 7 percent to 8 percent. The tax was imposed by state law before 1980 and was last raised in 2007.

The legislation also increases the share of the revenue that must be granted to the convention and visitors bureau. The remaining portion is to cover debt obligations for the Grand Wayne Center.

A fiscal analysis shows the tax would bring in about $890,000 in new revenue in 2020.