Daviess County will try to increase innkeepers tax again to increase tourism

Although the council approved the resolution, it needs an approval from the Indiana General Assembly before it can go into effect.

"It's just a process of going to the state and requesting an increase in the tax for Daviess County," said Visitors Bureau Executive Director Samantha Bobbitt. "There are other counties that have done it that are much larger than we are." 

The tax at the county's current rate of occupancy and number of hotels is expected to generate an additional $33,000 per year, but the outlook for growth in the local tourism and travel industry is good.

"On the horizon we see the potential for more hotels being built in our community," said Bobbitt. "We want to get ahead of it and get that tax in place beforehand, so if it is going to grow it will grow even more because it is there."

Local officials are quick to point out that the tax is one that is not directed at people who live in Daviess County.

"It won't impact many people in Daviess County," said President of the Daviess County Council Mike Myers. "It will impact those who are staying in our hotels here."

"This is not a tax on the people who live here," added Bobbitt. "This is on those who travel in and rent rooms here. It's about the only way we can increase the amount of money we have to promote tourism."

Tourism that includes tours into the Amish Community and outdoor sports like fishing have helped establish a tourism as an promising industry in the county — something the Visitors Bureau hopes to expand.

"We feel it would be great for our tourism," said Bobbitt. "Building a future that could bring people here and grow what we already have."

"We are looking to do more branding and work in a regional area," added Visitors Bureau Board member Natalie Smith.

A multi-county effort

Tourism growth in southern Indiana has been one of the focuses of a large Lilly Endowment grant to the economic development group Radius Indiana, and the Visitors Bureau is working on part of a coordinated effort to draw more people to the multi-county area.

"We're working with Radius on a branding initiative," said Bobbitt. "This money could be part of the commitment to that. We could also use it to increase tourism. Maybe broaden some horizons and do different promotions."

One of the things about raising the innkeepers tax is that not only is it capturing additional dollars from outside of the community, it is also using those dollars to help bring in more people and more money from out of town.

"It's a good thing to bring in money and promote tourism in the county," said Myers.

For the last few years, community leaders have been discussing the possibility of constructing a cultural and convention center near I-69. That project remains on the drawing board, but could also be a target for the increased funding generated by a raise in the tax.

"Everything is possible," said Bobbitt. "We are not going to close it down and say it wouldn't be. It wouldn't be enough to fund the center itself, but it could be part of it."

Daviess County leaders have discussed raising the tax for several years, dating back to the time when most of the rooms were full because of major construction projects.

"It was first floated when we had all the construction going on at the Duke Plant and Edwardsport and I-69," said Myers. "Our hotels were full at that time. That would have brought in some extra money."

Legislature approval

The county even put together a request last year for the Legislature to raise the local innkeepers tax, but the matter came up too late to get approval. Lawmakers are still waiting to see the formal resolution from the county before taking action on the request.

"I have not received anything yet," said Senator Eric Bassler (R-Washington). "The earlier in the session we get that request, the more likely it will be addressed."

"We need to get a copy of the resolution to our delegation so that they can get it moving," said Smith. "Most likely it will wind up getting attached to another bill that is moving through the Legislature."

County officials say they believe the bill has a good chance if they can get it started soon in the short session.

"We've had good support from those folks in the past and hope to see that same support for this," said Myers.