Tax rate; increases; use of money generated by increase
Sec. 3. (a) The tax imposed by section 2 of this chapter shall be
at the rate of:
(1) before January 1, 2028, five percent (5%) on the gross
income derived from lodging income only, plus an additional one
percent (1%) if the fiscal body adopts an ordinance under
subsection (b), plus an additional three percent (3%) if the fiscal
body adopts an ordinance under subsection (d);
(2) after December 31, 2027, and before January 1, 2041, five
percent (5%), plus an additional one percent (1%) if the fiscal
body adopts an ordinance under subsection (b), plus an
additional three percent (3%) if the fiscal body adopts an
ordinance under subsection (d); and
(3) after December 31, 2040, five percent (5%).
(b) In any year subsequent to the initial year in which a tax is
imposed under section 2 of this chapter, the fiscal body may, by
ordinance adopted by at least two-thirds (2/3) of the members elected
to the fiscal body, increase the tax imposed by section 2 of this
chapter from five percent (5%) to six percent (6%). The ordinance
must specify that the increase in the tax authorized under this
subsection expires January 1, 2028.
(c) The amount collected from an increase adopted under
subsection (b) shall be transferred to the capital improvement board
of managers established by IC 36-10-9-3. The board shall deposit the
revenues received under this subsection in a special fund. Money in
the special fund may be used only for the payment of obligations
incurred to expand a convention center, including:
(1) principal and interest on bonds issued to finance or refinance
the expansion of a convention center; and
(2) lease agreements entered into to expand a convention
center.
(d) On or before June 30, 2005, the fiscal body may, by ordinance
adopted by a majority of the members elected to the fiscal body,
increase the tax imposed by section 2 of this chapter by an additional
three percent (3%) to a total rate of eight percent (8%) (or nine
percent (9%) if the fiscal body has adopted an ordinance under
subsection (b) and that rate remains in effect). The ordinance must
specify that the increase in the tax authorized under this subsection
expires on:
(1) January 1, 2041;
(2) January 1, 2010, if on that date there are no obligations owed
by the capital improvement board of managers to the authority
created by IC 5-1-17 or to any state agency under IC 5-1-17-26;
or
(3) October 1, 2005, if on that date there are no obligations
owed by the capital improvement board of managers to the
Indiana stadium and convention building authority or to any state
agency under a lease or a sublease of an existing capital
improvement entered into under IC 5-1-17, unless waived by the
budget director.
If the fiscal body adopts an ordinance under this subsection, it shall
immediately send a certified copy of the ordinance to the
commissioner of the department of state revenue, and the increase
in the tax imposed under this chapter applies to transactions that
occur after June 30, 2005.
(e) The amount collected from an increase adopted under:
(1) subsection (b) and collected after December 31, 2027; and
(2) subsection (d);
shall be transferred to the capital improvement board of managers
established by IC 36-10-9-3 or its designee. So long as there are any
current or future obligations owed by the capital improvement board
of managers to the Indiana stadium and convention building authority
created by IC 5-1-17 or any state agency pursuant to a lease or other
agreement entered into between the capital improvement board of
managers and the Indiana stadium and convention building authority
or any state agency pursuant to IC 5-1-17-26, the capital
improvement board of managers or its designee shall deposit the
revenues received under this subsection in a special fund, which may
be used only for the payment of the obligations described in this
subsection.
As added by Acts 1980, P.L.8, SEC.60. Amended by P.L.86-1993,
SEC.2; P.L.256-1997(ss), SEC.2; P.L.214-2005, SEC.29.
Last modified: May 28, 2006