IndianaLocal governments could form tourism districts that charge businesses
If enough business owners sign a petition, local leaders could approve tourism districts that charge covered businesses for projects meant to benefit them.
What it does
Local leaders could approve a district after a hearing only if at least half its business owners sign and the signers would pay over half the planned charges. Non-signers facing charges could ask to be left out.
Businesses in an approved district could pay charges based on the benefits they receive. Homes and property with a homestead tax deduction could not be included or charged.
The local government would contract with a private nonprofit to run district work. The district could borrow for physical improvements by selling bonds that last no more than 10 years.
A district could last three to 10 years and renew once. Starting one year after it begins, owners paying at least half its charges could seek closure during a yearly 30-day window; charges needed to repay bonds could continue.
Argument forBusinesses could pay for projects meant to benefit them, while the petition rules give owners a say before charges begin.
Argument againstA business owner who did not sign might still face charges if enough others sign and officials deny the owner's request to be left out.
More detail
City, town, or county leaders could approve a proposed tourism district after a public hearing. This applies to businesses in a proposed district. At least half the proposed business owners must sign, and the signers must account for more than half the expected charges. Officials must find that the projects would add benefits for district businesses and use a suitable charge formula. An owner facing charges who did not sign may request exclusion; officials would decide before approval. If enacted, the proposed chapter would take effect July 1, 2026.
Local officials would set charges for district businesses based on their estimated benefit. A district could cover businesses inside a city or town, or in county land outside any city or town. Different kinds of businesses could pay different rates. Homes and property receiving a homestead tax deduction could not be included or charged.
A local government would contract with a private nonprofit to run district work, and the district could borrow for physical improvements by selling bonds. These provisions apply to approved tourism districts. Money sent to the nonprofit could be used only for purposes named in the district ordinance. Bonds would be repaid only from district charges and other district revenue. Bonds could last no more than 10 years; after a district renewal, their term could extend no more than 10 years from that renewal.
Business owners who pay at least half the district's charges could submit a written request that requires officials to start a closure process. The closure request applies to owners of businesses in an operating district. Local leaders could close the district after a public hearing. Charges needed to repay bonds could not be reduced or stopped if doing so would delay repayment. The closure request window lasts 30 days each year, starting one year after the district is established. The first term must last at least three and no more than 10 years; one renewal could last up to 10 more years.
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Where it stands
- Introduced
- Passed House
- Passed Senate
- To Governor
- Became Law
Looking ahead
No hearings or votes scheduled.
History
- 2026
- Jan 13Representatives Moed, Baird added as coauthorsLatest
- Jan 13Representative Harris added as coauthor
- Jan 13Recommitted to Committee on Ways and Means pursuant to House Rule 126.3
- Jan 13Committee report: amend do pass, adoptedMinor
- Jan 5First reading: referred to Committee on Local GovernmentMinor
- Jan 5Authored by Representative KarickhoffIntroduced
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