For years, hospitality industry leaders have protested creeping tax rates on hotel rooms, rental cars and meals that rank Indianapolis as one of the highest-taxed U.S. cities for visitors.
Soon they may have a fresh target: potential hikes being mulled by city leaders that could push taxes on car rentals from 15 to 17 percent and the admissions tax on Colts and Pacers tickets from 6 to 10 percent.
Rental customers and sports fans would pay up to help buttress the Capital Improvement Board budget. The once-ailing agency -- now on firmer financial footing, but not necessarily rock solid, officials say -- operates Indianapolis' sports venues and convention center.
Mayor Greg Ballard says the increases under consideration primarily would affect visitors and the users of CIB facilities, but others are crying foul.
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No official proposal has been made. But under a 2009 CIB bailout package passed by the General Assembly, those two additional tax increases will be available for the City-County Council to enact only in the first two months of 2013.
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If the council adopts the full increases, the CIB estimates that they would bring in $6.9 million a year.
The CIB would gain money it could use for day-to-day expenses, to fix up buildings, or to help pay off debt. Its operating budget for next year is $63.9 million.
In January, a 4-percentage-point increase will be available on the 6 percent admissions tax, charged on tickets to most events at CIB facilities.
Marion County's auto rental excise tax, now 4 percent, could be increased by 2 percentage points. That local rental tax, combined with the state sales and rental taxes, raises the total tax now paid by car rental customers to 15 percent. At Indianapolis International Airport, rental agencies also pass on a concession fee that amounts to about 11.1 percent and a $4 facility charge.
How Indy compares
The 15 percent car rental tax rate recently helped rank Indianapolis No. 8 on the Global Business Travel Association's list of the worst 10 cities for travel taxes in 2012. The group also considered Indianapolis' 9 percent tax on food and beverages and its 17 percent tax on hotels....
Ryan Vaughn, the mayor's chief of staff, said Friday that in recent discussions with the council, both sides have agreed that if the tax increases are approved, a portion of the proceeds will reimburse the city for providing police and fire coverage of CIB facilities.
