IN HB1117

Municipalities may impose a flat-rate innkeeper's tax up to $5 per night on short-term lodging rentals (less than 30 days) at hotels, motels, inns, boat motels, college residence halls, and tourist cabins, effective July 1, 2026

Tax revenue must be deposited into a convention, visitor, and tourism promotion fund and may only be used for tourism promotion, park creation/enhancement, or municipal services related to conventions and special events (excluding salaries and operating expenses)

The tax exempts students renting college residence halls while enrolled in credit courses and any rentals of 30 days or more

Municipal innkeeper's taxes imposed under this chapter automatically terminate 22 years after the ordinance's effective date

Knowingly approving improper fund transfers or misusing tax revenue constitutes a Level 6 felony