WFHB Bloomington Community Radio
Podcast: Play in new window | Download (Duration: 1:43 — 1.6MB)
The Indiana State Senate passed a bill taxing short-term rentals, like Airbnb, last month.
Senate Bill 497 passed the Senate and was referred to the State House of Representatives, last week. The bill would add state sales and county innkeeper’s taxes to short-term rental costs. SB 497 provides an exception to people who rent their homes for 15 days or less, per year.
Innkeeper’s taxes apply to those in the business of renting a room or other form of lodging for periods less than 30 days, according the the Indiana Department of Revenue. Monroe County has charged a 5% innkeeper’s tax, since 1990. All 92 counties in Indiana are authorized to impose the county Innkeeper’s tax, all but 13 do.
SB 497, authored by Sen. (D-Ogden Dunes) Karen Tallian, includes the statewide sales tax of 7%.
The American Hotel and Lodging Association has been lobbying for additional regulation on short-term rental companies like Airbnb. The trade group claims that the hotel industry is subject to unfair competition, through online peer-to-peer renters.
Currently 46 other states have occupancy taxes on short term rentals.
