CHAPTER 2. LAKE COUNTY INNKEEPER'S TAX
IC 6-9-2
Chapter 2. Lake County Innkeeper's Tax
IC 6-9-2-1
Tax on lodgings; rate; returns; disposition of revenue
Sec. 1. (a) A county having a population of more than fourhundred thousand (400,000) but less than seven hundred thousand(700,000) that establishes a medical center development agencypursuant to IC 16-23.5-2 may levy each year a tax on every personengaged in the business of renting or furnishing, for periods of lessthan thirty (30) days, any room or rooms, lodgings, oraccommodations, in any hotel, motel, inn, tourist camp, tourist cabinor any other place in which rooms, lodgings, or accommodations areregularly furnished for a consideration.
(b) Such tax shall be at a rate of five percent (5%) on the grossretail income derived therefrom and shall be in addition to the stategross retail tax imposed on such persons by law.
(c) The county fiscal body may adopt an ordinance to require thatthe tax be reported on forms approved by the county treasurer andthat the tax shall be paid monthly to the county treasurer. If such anordinance is adopted, the tax shall be paid to the county treasurer notmore than twenty (20) days after the end of the month the tax iscollected. If such an ordinance is not adopted, the tax shall beimposed, paid, and collected in exactly the same manner as the stategross 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 impositionand administration of the tax imposed by this section except to theextent such provisions are in conflict or inconsistent with the specificprovisions of this chapter or the requirements of the county treasurer.Specifically and not in limitation of the foregoing sentence, the terms"person" and "gross retail income" shall have the same meaning inthis section as they have in the state gross retail tax (IC 6-2.5). If thetax is paid to the department of state revenue, the returns to be filedfor the payment of the tax under this section may be either a separatereturn or may be combined with the return filed for the payment ofthe state gross retail tax as the department of state revenue may, byrule, determine.
(e) If the tax is paid to the department of state revenue, theamounts received from the tax shall be paid by the end of the nextsucceeding month by the treasurer of state to the county treasurerupon warrants issued by the auditor of state. The county treasurershall deposit the revenue received under this chapter as provided insection 2 of this chapter.
(Formerly: Acts 1972, P.L.58, SEC.2; Acts 1975, P.L.69, SEC.1.) Asamended by Acts 1981, P.L.11, SEC.39; Acts 1982, P.L.67, SEC.1;P.L.96-1983, SEC.1; P.L.108-1987, SEC.1; P.L.12-1992, SEC.33;P.L.67-1997, SEC.2; P.L.2-2007, SEC.130.
IC 6-9-2-2
Allocation of revenue
Sec. 2. (a) The revenue received by the county treasurer under thischapter shall be allocated to the Lake County convention and visitorbureau, Indiana University-Northwest, Purdue University-Calumet,municipal public safety departments, municipal physical andeconomic development divisions, and the cities and towns in thecounty as provided in this section. Subsections (b) through (g) do notapply to the distribution of revenue received under section 1 of thischapter from hotels, motels, inns, tourist camps, tourist cabins, andother lodgings or accommodations built or refurbished after June 30,1993, that are located in the largest city of the county.
(b) The Lake County convention and visitor bureau shall establisha convention, tourism, and visitor promotion fund (referred to in thischapter as the "promotion fund"). The county treasurer shall transferto the Lake County convention and visitor bureau for deposit in thepromotion fund thirty-five percent (35%) of the first one million twohundred thousand dollars ($1,200,000) of revenue received from thetax imposed under this chapter in each year. The promotion fundconsists of:
(1) money in the promotion fund on June 30, 2005;
(2) revenue deposited in the promotion fund under thissubsection after June 30, 2005; and
(3) investment income earned on the promotion fund's assets.
Money in the bureau's funds may be expended to promote andencourage conventions, trade shows, special events, recreation, andvisitors. Money may be paid from the promotion fund by claim in thesame manner as municipalities may pay claims under IC 5-11-10-1.6.
(c) This subsection applies to the first one million two hundredthousand dollars ($1,200,000) of revenue received from the taximposed under this chapter in each year. During each year, thecounty treasurer shall transfer to Indiana University-Northwestforty-four and thirty-three hundredths percent (44.33%) of therevenue received under this chapter for that year to be used asfollows:
(1) Seventy-five percent (75%) of the revenue received underthis subsection may be used only for the university's medicaleducation programs.
(2) Twenty-five percent (25%) of the revenue received underthis subsection may be used only for the university's alliedhealth education programs.
(d) This subsection applies to the first one million two hundredthousand dollars ($1,200,000) of revenue received from the taximposed under this chapter in each year. During each year, thecounty treasurer shall allocate among the cities and towns throughoutthe county nine percent (9%) of the revenue received under thischapter for that year as follows:
(1) Ten percent (10%) of the revenue covered by this subsectionshall be distributed to cities having a population of more thanninety thousand (90,000) but less than one hundred five
thousand (105,000).
(2) Ten percent (10%) of the revenue covered by this subsectionshall be distributed to cities having a population of more thanseventy-five thousand (75,000) but less than ninety thousand(90,000).
(3) Ten percent (10%) of the revenue covered by this subsectionshall be distributed to cities having a population of more thanthirty-two thousand (32,000) but less than thirty-two thousandeight hundred (32,800).
(4) Seventy percent (70%) of the revenue covered by thissubsection shall be distributed in equal amounts to each townand each city not receiving a distribution under subdivisions (1)through (3).
The money distributed under this subsection may be used only fortourism and economic development projects. The county treasurershall make the distributions on or before December 1 of each year.
(e) This subsection applies to the first one million two hundredthousand dollars ($1,200,000) of revenue received from the taximposed under this chapter in each year. During each year, thecounty treasurer shall transfer to Purdue University-Calumet ninepercent (9%) of the revenue received under this chapter for that year.The money received by Purdue University-Calumet may be used bythe university only for nursing education programs.
(f) This subsection applies to the first one million two hundredthousand dollars ($1,200,000) of revenue received from the taximposed under this chapter in each year. During each year, thecounty treasurer shall transfer two and sixty-seven hundredthspercent (2.67%) of the revenue received under this chapter for thatyear to the following cities:
(1) Fifty percent (50%) of the revenue covered by thissubsection shall be transferred to cities having a population ofmore than ninety thousand (90,000) but less than one hundredfive thousand (105,000).
(2) Fifty percent (50%) of the revenue covered by thissubsection shall be transferred to cities having a population ofmore than seventy-five thousand (75,000) but less than ninetythousand (90,000).
Money transferred under this subsection may be used only forconvention facilities located within the city. In addition, the moneymay be used only for facility marketing, sales, and public relationsprograms. Money transferred under this subsection may not be usedfor salaries, facility operating costs, or capital expenditures relatedto the convention facilities. The county treasurer shall make thetransfers on or before December 1 of each year.
(g) This subsection applies to the revenue received from the taximposed under this chapter in each year that exceeds one million twohundred thousand dollars ($1,200,000). During each year, the countytreasurer shall distribute money in the promotion fund as follows:
(1) Eighty-five percent (85%) of the revenue covered by thissubsection shall be deposited in the convention, tourism, and
visitor promotion fund. The money deposited in the fund underthis subdivision may be used only for the purposes for whichother money in the fund may be used.
(2) Five percent (5%) of the revenue covered by this subsectionshall be transferred to Purdue University-Calumet. The moneyreceived by Purdue University-Calumet under this subdivisionmay be used by the university only for nursing educationprograms.
(3) Five percent (5%) of the revenue covered by this subsectionshall be transferred to Indiana University-Northwest. Themoney received by Indiana University-Northwest under thissubdivision may be used only for the university's medicaleducation programs.
(4) Five percent (5%) of the revenue covered by this subsectionshall be transferred to Indiana University-Northwest. Themoney received by Indiana University-Northwest under thissubdivision may be used only for the university's allied healtheducation programs.
(h) This subsection applies only to the distribution of revenuereceived from the tax imposed under section 1 of this chapter fromhotels, motels, inns, tourist camps, tourist cabins, and other lodgingsor accommodations built or refurbished after June 30, 1993, that arelocated in the largest city of the county. During each year, the countytreasurer shall transfer:
(1) seventy-five percent (75%) of the revenues under thissubsection to the department of public safety; and
(2) twenty-five percent (25%) of the revenues under thissubsection to the division of physical and economicdevelopment;
of the largest city of the county.
(i) The Lake County convention and visitor bureau shall assist thecounty treasurer, as needed, with the calculation of the amounts thatmust be deposited and transferred under this section.
As added by Acts 1982, P.L.67, SEC.2. Amended by P.L.96-1983,SEC.2; P.L.108-1987, SEC.2; P.L.27-1992, SEC.7;P.L.277-1993(ss), SEC.130; P.L.102-1995, SEC.1; P.L.68-1996,SEC.1; P.L.170-2002, SEC.30; P.L.168-2005, SEC.1; P.L.223-2007,SEC.6; P.L.211-2007, SEC.45; P.L.113-2010, SEC.70.
IC 6-9-2-3
Convention and visitor bureau; creation; membership; terms;organization
Sec. 3. (a) For purposes of this section, the size of a politicalsubdivision is based on the population determined in the last federaldecennial census.
(b) A convention and visitor bureau having fifteen (15) membersis created to promote the development and growth of the convention,tourism, and visitor industry in the county.
(c) The executives (as defined by IC 36-1-2-5) of the eight (8)largest municipalities (as defined by IC 36-1-2-11) in the county
shall each appoint one (1) member to the bureau. The legislativebody (as defined in IC 36-1-2-9) of the two (2) largest municipalitiesin the county shall each appoint one (1) member to the bureau.
(d) The county council shall appoint two (2) members to thebureau. One (1) of the appointees must be a resident of the largesttownship in the county, and one (1) of the appointees must be aresident of the second largest township in the county.
(e) The county commissioners shall appoint two (2) members tothe bureau. Each appointee must be a resident of the fifth, sixth,seventh, eighth, ninth, tenth, or eleventh largest township in thecounty. These appointees must be residents of different townships.
(f) The lieutenant governor shall appoint one (1) member to thebureau.
(g) One (1) of the appointees under subsection (d) and one (1) ofthe appointees under subsection (e) must be members of the politicalparty that received the highest number of votes in the county in thelast preceding election for the office of secretary of state. One (1) ofthe appointees under subsection (d) and one (1) of the appointeesunder subsection (e) must be members of the political party thatreceived the second highest number of votes in the county in theelection for that office. No appointee under this section may hold anelected or appointed political office while serving on the bureau.
(h) In making appointments under this section, the appointingauthority shall give sole consideration to individuals who areknowledgeable about or employed as executives or managers in atleast one (1) of the following businesses in the county:
(1) Hotel.
(2) Motel.
(3) Restaurant.
(4) Travel.
(5) Transportation.
(6) Convention.
(7) Trade show.
(8) A riverboat licensed under IC 4-33.
(9) Banking.
(10) Real estate.
(11) Construction.
However, an individual employed by a riverboat may not beappointed under this section unless the individual holds a Level 1occupational license issued under IC 4-33-8. This subsection doesnot apply to board members appointed before July 1, 2007, who areeligible for reappointment after June 30, 2007.
(i) All terms of office of bureau members begin on July 1.Members of the bureau serve terms of three (3) years. A memberwhose term expires may be reappointed to serve another term. If avacancy occurs, the appointing authority shall appoint a qualifiedperson to serve for the remainder of the term. If an appointment isnot made before July 16 or a vacancy is not filled within thirty (30)days, the member appointed by the lieutenant governor undersubsection (f) shall appoint a qualified person. (j) A member of the bureau may be removed for cause by themember's appointing authority.
(k) Members of the bureau may not receive a salary. However,bureau members are entitled to reimbursement for necessaryexpenses incurred in the performance of their respective duties.
(l) Each bureau member, before entering the member's duties,shall take an oath of office in the usual form, to be endorsed upon themember's certificate of appointment and promptly filed with the clerkof the circuit court of the county.
(m) The bureau shall meet after July 1 each year for the purposeof organization. The bureau shall elect a chairman from its members.The bureau shall also elect from its members a vice chairman, asecretary, and a treasurer. The members serving in those offices shallperform the duties pertaining to the offices. The first officers chosenshall serve until their successors are elected and qualified. A majorityof the bureau constitutes a quorum, and the concurrence of a majorityof those present is necessary to authorize any action.
(n) If the county and one (1) or more adjoining counties desire toestablish a joint bureau, the counties shall enter into an agreementunder IC 36-1-7.
(o) Notwithstanding any other law, any bureau member appointedas of January 1, 2007, is eligible for reappointment.
As added by Acts 1982, P.L.67, SEC.3. Amended by P.L.96-1983,SEC.3; P.L.68-1996, SEC.2; P.L.176-2002, SEC.4; P.L.168-2005,SEC.2; P.L.223-2007, SEC.7.
IC 6-9-2-4
Powers of bureau
Sec. 4. (a) The bureau may:
(1) accept and use gifts, grants, and contributions from anypublic or private source, under terms and conditions that thebureau 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 theaccomplishment of its purposes;
(5) receive and approve, alter, or reject requests and proposalsfor funding by corporations qualified under subdivision (6);
(6) after its approval of a proposal, transfer money from thepromotion fund or from the alternate revenue fund to anyIndiana nonprofit corporation to promote and encourageconventions, trade shows, visitors, or special events in thecounty;
(7) require financial or other reports from any corporation thatreceives 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 to acquire propertyto promote and encourage conventions, trade shows, specialevents, recreation, and visitors within the county. (b) All expenses of the bureau shall be paid from fundsestablished by the bureau. Before September 1 of each year, thebureau shall prepare a budget for expenditures during the followingyear, taking into consideration the recommendations made by acorporation qualified under subsection (a)(6). A budget preparedunder this section must be submitted to the department of localgovernment 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 thehandling of public funds. The handling and expenditure of money inthe bureau's funds are subject to audit and supervision by the stateboard of accounts.
As added by Acts 1982, P.L.67, SEC.4. Amended by P.L.46-1998,SEC.1; P.L.168-2005, SEC.3; P.L.223-2007, SEC.8.
IC 6-9-2-4.3
Convention, tourism, and visitor promotion alternate revenue fund
Sec. 4.3. (a) The Lake County convention and visitor bureau shallestablish a convention, tourism, and visitor promotion alternaterevenue fund (referred to in this chapter as the "alternate revenuefund"). The bureau may deposit in the alternate revenue fund allmoney received by the bureau after June 30, 2005, that is notrequired to be deposited in the promotion fund under section 2 of thischapter, 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 andencourage conventions, trade shows, visitors, special events, sportingevents, and exhibitions in the county. Money may be paid from thealternate revenue fund by claim in the same manner as municipalitiesmay 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 relatingto the handling of public funds. The handling and expenditure ofmoney in the alternate revenue fund is subject to audit andsupervision by the state board of accounts.
(d) Money derived from the taxes imposed under IC 4-33-12 andIC 4-33-13 may not be transferred to the alternate revenue fund.
As added by P.L.168-2005, SEC.4.
IC 6-9-2-4.5
Visitor center funding; allocation from promotion fund andalternate revenue fund
Sec. 4.5. The bureau may enter into an agreement under whichamounts deposited in, or to be deposited in, the promotion fund orthe alternate revenue fund, or both, are pledged to payment ofobligations, including leases entered into under IC 36-1-10, issued tofinance the construction, acquisition, and equipping of a visitorcenter to promote and encourage conventions, trade shows, specialevents, recreation, and visitors within the county.As added by P.L.46-1998, SEC.2. Amended by P.L.168-2005, SEC.5.
IC 6-9-2-4.7
Issuance of bonds; negotiation and sale; leases
Sec. 4.7. (a) The bureau may issue bonds, enter into leases, orincur other obligations to:
(1) pay the costs incurred in the financing, construction,acquisition, and equipping of a visitor center to promote andencourage conventions, trade shows, special events, recreation,and visitors within the county;
(2) reimburse itself or any nonprofit corporation for any moneyadvanced to pay those costs; or
(3) refund bonds issued or other obligations incurred under thischapter.
(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 negotiatedsale 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 combinationof these sources;
(3) may provide that payments by the bureau to the lessor arerequired only to the extent and only for the time that the lessoris able to provide the leased facilities in accordance with thelease;
(4) must be based upon the value of the facilities leased; and
(5) may not create a debt of the county for purposes of theConstitution of the State of Indiana.
(d) A lease may be entered into by the bureau only after a publichearing:
(1) for which notice has been given in accordance withIC 5-3-1; and
(2) at which all interested parties are provided the opportunityto be heard.
(e) After the public hearing, the bureau may approve theexecution of the lease only if the bureau finds that the services to beprovided throughout the life of the lease will serve the publicpurposes for which the bureau was created and that the execution ofthe lease is in the best interests of the residents of the county.
(f) Upon execution of a lease under this section, the bureau shallpublish notice of the execution of the lease in accordance withIC 5-3-1.
(g) An action to contest the validity of bonds issued or leasesentered into under this section must be brought within thirty (30)days after the adoption of a bond resolution or notice of theexecution and approval of the lease, as the case may be.
As added by P.L.46-1998, SEC.3.
IC 6-9-2-4.9
State covenant on bond payments
Sec. 4.9. With respect to:
(1) bonds, leases, or other obligations to which the bureau haspledged revenues under this chapter; and
(2) bonds issued by a lessor that are payable from lease rentals;
the general assembly covenants with the bureau and the purchasersor owners of the bonds or other obligations described in this sectionthat this chapter will not be repealed or amended in any manner thatwill adversely affect the collection of the tax imposed under thischapter or the money deposited in the promotion fund or the alternaterevenue fund as long as the principal of or interest on any bonds, orthe lease rentals due under any lease, are unpaid.
As added by P.L.46-1998, SEC.4. Amended by P.L.168-2005, SEC.6.
IC 6-9-2-5
Violations
Sec. 5. (a) A member of the convention and visitor bureau createdunder section 3 of this chapter or the economic developmentauthority created under section 7 of this chapter who knowingly:
(1) approves the transfer of money to any person or corporationnot qualified under law for that transfer; or
(2) approves a transfer for a purpose not permitted under law;
commits a Class D felony.
(b) A person who receives a transfer of money under this chapterand knowingly uses that money for any purpose not permitted underthis chapter commits a Class D felony.
As added by Acts 1982, P.L.67, SEC.5. Amended by P.L.96-1983,SEC.4.
IC 6-9-2-5.5
Public purpose of visitor center
Sec. 5.5. The financing of the construction, acquisition, andequipping of a visitor center to promote and encourage conventions,trade shows, special events, recreation, and visitors within the countyserves a public purpose and is of benefit to the general welfare of thecounty by encouraging investment, job creation and retention, andeconomic growth and diversity.
As added by P.L.46-1998, SEC.5.
IC 6-9-2-6
Repealed
(Repealed by P.L.108-1987, SEC.18.)
IC 6-9-2-7
Repealed
(Repealed by P.L.27-1992, SEC.31.)
IC 6-9-2-8
Repealed (Repealed by P.L.27-1992, SEC.31.)
IC 6-9-2-9
Annual report regarding disposition of money collected; remediesfor failure to provide legislative body with sufficient information;resolution
Sec. 9. (a) The legislative body of a county that imposes a taxunder section 1 of this chapter shall annually prepare a reportconcerning the disbursement and use of the money collected underthis chapter during the preceding calendar year. The report shall beprepared before March 15 each year and shall be made available tothe public.
(b) If in any year an entity receiving money under this chapterfails to provide the county legislative body with sufficientinformation, 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 byresolution to stop deposits and transfers under this chapter to theentity. When an entity provides the information that is the subject ofthe resolution, the county legislative body shall as soon aspracticable direct the county treasurer, by resolution, to resumemaking deposits and transfers to the entity, including any depositsand transfers that would otherwise have been made to the entityduring the time that deposits and transfers were stopped under thissubsection. A copy of a resolution adopted under this subsectionmust be distributed to the county treasurer and the entity that is thesubject of the resolution within ten (10) business days after theresolution is adopted. The county treasurer shall comply with aresolution adopted under this subsection.
As added by P.L.27-1992, SEC.8. Amended by P.L.102-1995, SEC.2;P.L.223-2007, SEC.9.
IC 6-9-2-10
Insurance benefits for convention and visitors bureau employees
Sec. 10. Employees of the convention and visitor bureau createdby section 3 of this chapter may participate in the group healthinsurance, disability insurance, and life insurance programsestablished:
(1) by the county government of the county described in section1 of this chapter; and
(2) for the employees of the convention and visitor bureau.
As added by P.L.168-2005, SEC.7.
IC 6-9-2-11
Bureau treated as a political subdivision for certain purposes
Sec. 11. The bureau created under section 3 of this chapter is apolitical subdivision for purposes of IC 34-13-3.
As added by P.L.223-2007, SEC.10.