The Warrick County Council approved an innkeeper’s tax Thursday night with little discussion.
The tax, which will go into effect Jan. 1, was approved 6-1 with Councilman Ted Metzger opposing.
Seventy-six other counties have an innkeeper’s tax.
The state has a standard for an innkeeper’s tax that counties can implement on their own, but if a county want to increase the tax, then it needs state approval.
In January, the Warrick County Council submitted a modified version of an innkeeper’s tax to the state legislature where they would have more control on how the funds are spent. The bill died in committee.
A few council members hesitated on the innkeepers tax because they considered it a tax. Other members consider it more as a user fee.
“I, as a citizen of Warrick County and have my home here and live here, am not going to be paying that tax,” Councilman Greg Richmond said at the council’s April meeting. “People who come from everywhere else around are going to be paying that. ... Since it’s a user fee rather than a tax and it’s not going to hurt me any at all, I think it’s the right thing to do.”
Metzger disagreed saying it can’t be a user fee because the people coming in aren’t using Warrick County resources.
“The people I talk to ... they see it as a tax, a new tax,” Metzger said in May. “They also it with this new tax is a new bureaucracy, an unelected bureaucracy that’s setting up policy. And they don’t like it.”
He said he preferred to resubmit the previous version back to the state because the legislature didn’t look at any innkeeper’s tax bills.
The 5 percent tax will be applied to any person staying at a hotel, motel, inn or tourist cabin for less than 30 days.
Shari Sherman, Warrick County Chamber of Commerce Executive Director, was elated by the ordinance passing.
Every time the county council discussed an innkeeper’s tax, Sherman was there in support.
“It’s good for business,” Sherman said. “It’s good for the economy. It gives a source of income to promote the county.”
All the money collected from the tax will go to promote the county. Sherman said with one hotel being built in the county, she estimates the county will collect $150,000 to $175,000 year.
According to the ordinance the money shall “promote and encourage conventions, visitors and tourism within Warrick County.” The money can also be used to for advertisement and promotional materials.
“I think it’s a good direction and now is the time to move it forward,” Sherman said.