New Haven could tax short stays at certain lodgings

New Haven could impose a flat nightly tax on short stays at certain lodgings. It would cover stays under 30 days at New Haven hotels, motels, boat motels, inns, tourist cabins, and college memorial unions or residence halls. The city would need to adopt an ordinance, and the tax could not exceed $5 per night. The tax would be added to state sales tax and any county lodging tax. Stays of 30 days or more and certain students living in college housing would be exempt. This authority would start July 1, 2026. Any city tax would end on January 1 of the calendar year beginning five years after its ordinance takes effect.

New Haven would place any lodging tax proceeds in a city tourism fund. The money could pay for a contract with the county visitor bureau, parks, and city services for conventions and special events. City officials must approve spending first. The city could not use the money for event salaries or operating expenses. Knowingly approving an unlawful transfer or misusing transferred money would be a Level 6 felony. These rules would take effect July 1, 2026.

Hamilton County would place lodging tax money from a rate of 5% or less in a combined tourism fund. This would apply to Hamilton County if it adopted a lodging tax before July 1, 2023, under the cited state law. The fund could pay for tourism promotion and projects that help the tourism economy. The county visitor commission must approve transfers from the fund. These fund rules would take effect July 1, 2026.

Hamilton County's treasurer would split certain lodging tax money equally among four cities. If Hamilton County adopted a lodging tax under the cited state law before July 1, 2023, Noblesville, Carmel, Fishers, and Westfield would each receive 25% of the money covered by section 3(c)(2) and raised by a rate above 5%. Each city's officials who approve spending would control its share without a separate tourism board for this fund. The cities could spend this money only on lasting tourism projects, not marketing, promotion, or planning. This distribution would take effect July 1, 2026.