Senate Bill 164 aims to increase our innkeepers tax rate in St. Joseph County from 6% to 8%. The full text can be found here. A summary of the bill can be found here. In essence, this bill is intended to focus entirely on product development to drive more overnight visitation and related visitor spending in St. Joseph County. A few details about this proposal:

The Hotel-Motel Tax Board formed a revenue enhancement committee at their August meeting to determine if pursuing an increase in the tax rate was worthwhile.

In 2019, our statute was amended to dedicate 1% of our 6% to be allocated to the development of a Mishawaka Sports Complex and for capital improvements at Potawatomi Zoo.

Also in 2019, both Fort Wayne (Allen County) and Kokomo (Howard County) increased their innkeepers tax rate to 8%.

As of now, Indy, Fort Wayne and Evansville all have an innkeepers tax rate of at least 8%. Additionally, Kokomo, Plainfield and Terre Haute are also at the 8% level. So, all cities/municipalities larger than SB in Indiana are already at 8% and other cities/municipalities are also at this level.

The proposed legislation for SJC dedicates the additional 2% increase in the following ways:
o 1% to create an annual Tourism Capital Improvement Fund. This new initiative would be administered by the Tax Board and would review applications for funding assistance for new or improved tourism product directly tied to ability to increase visitation and room nights in St. Joseph County. This would be a matching fund requiring applicants to identify funds to leverage with any TCIF grant.
o .4% to raise the allocation for the Mishawaka Sports Complex to a full 1%. Mishawaka hopes to break ground on this project in fall 2021
o .1% to raise the allocation for the Potawatomi Zoo to .5% for their ambitious capital improvement plan to transform the zoo into a true, regional attraction.
o .5% for the Morris Performing Arts Center impending improvements and expansion to commemorate the theater’s 100Th anniversary and position the complex to attract bigger and better shows.
o These changes would sunset in 2046.

The original legislation for the original 5% of the innkeepers tax will still be allocated, as always, to Century Center and Visit South Bend Mishawaka.

This will be a process, as the bill will need to be heard and passed in Indy and then also enabled and passed by the St. Joseph County Council. If all goes well, this process would successfully advance between now and July 1, 2021 when any proposed changes would be enacted.

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