Wednesday, July 10, 2013

Trib-Star Reports Vigo County Considering Increase in Innkeeper's Tax

From the Terre Haute Tribune Star:

A provision approved this year by the Indiana General Assembly will allow the innkeeper’s tax in Vigo County to increase by three percentage points to 8 percent from 5 percent.

But just when and how quickly that new tax rate is implemented will be part of a financial analysis planned for the Terre Haute Convention and Visitor’s Bureau of Vigo County.

“I think we need to get a financial analysis before we go with an increase,” board member Greg Gibson said Tuesday.

The bureau was established in 1981 with a 2-percent innkeepers tax. That was increased to 5 percent in 1998. However, that tax rate increase was gradually implemented, with the full rate hitting 5 percent in 2004.

“We have been at the same funding level for nine years. The increase in funding is necessary to match the increase in events we’ve had over the years,” said David Patterson, Convention and Visitors Bureau executive director.

The bureau’s finances pay for a bond issued to develop the Bird/Gibson cross country course, for the mortgage on the bureau’s visitor building/track museum near Indiana 46 and Margaret Avenue and to marketing events.

“We will definitely refinance our bond, as rates have changed, which is just being good stewards of that money,” Patterson said. “We just have to find out what the best model for the implementation of the innkeeper’s tax is. Right now, we will continue as we are and we will review that.”

Any increase in the innkeeper’s tax must first be approved by the Vigo County Council.

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See the full article here:

http://tribstar.com/local/x881894645/CVB-formulating-plan-to-raise-Vigo-innkeeper-s-tax