CARMEL — Carmel is considering a new $5-per-night hotel tax that would help fund the city's tourism initiatives, including a planned hotel and conference center district expected to drive nearly $1 billion in investment.
The proposal, known as SB-242, would authorize the flat innkeeper's tax for visitors staying in Carmel hotels. This fee would be in addition to the existing county innkeeper tax of 8% and state sales tax.
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"I'm here to support SB-242, which, as stated, would allow Carmel to impose a modest flat innkeeper's tax for up to $5 per night," Carmel Mayor Sue Finkam said at a Tuesday senate hearing.
The city plans to return 100% of the locally-raised funds to Carmel for tourism development projects.
Carmel leaders say nearly half of Hamilton County hotel rooms are located in their city. The $5 nightly fee would allow the city to fund its own tourism initiatives without pulling county funds.
However, the proposal faces opposition from the Indiana Tourism Association. Jim Epperson with the organization expressed concerns about the precedent it could set.
"We think it's unnecessary for Hamilton County and Carmel, and it opens up the door to more of this statewide, which could really upend these community collaborations that have developed over 50 years of structuring tourism in a certain way in Indiana," Epperson said.
Visitors appear receptive to the idea.
"No, I wouldn't mind," said Kayle Knotts, who's visiting from Austin, Texas.
In a written statement provided to WRTV, Carmel leaders added that "the legislation ensures that growth helps pay for growth, benefitting visitors, local businesses, and the broader regional economy."
The mayor's office was not available for a follow-up interview at this time.
You can find a link to the legislation itself by clicking the link here.
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