Tax Provides Boost For Tourism Projects
Revenue from an innkeepers tax will be used to fund several tourism efforts throughout Hamilton County. A bond initiative has been approved by the county council to support special projects involving sports, downtown redevelopment and historic preservation. Officials say the innkeepers tax generates approximately $2.5 million per year, which has to be pumped into tourism development initiatives.NOBLESVILLE, Ind. – Innkeepers tax dollars captured from out-of-area visitors will be invested into several tourism projects throughout the county under a tourism bond initiative approved by the Hamilton County Council last week, the Hamilton County Convention and Visitors Bureau reports.
The $3.45 million bond will be financed by a 5 percent tax paid by visitors for up to 20 years and is expected to generate $31 million in local tax revenues over the life of the projects.
“This proposal is similar to single-use capital projects in larger cities, which often are supported by lodging taxes,” said bureau Executive Director Brenda Myers. “This is Hamilton County’s investment in destination development.”
The bond will support projects throughout the county, including sports, historic preservation, downtown redevelopment, the arts and a local park.
The Hamilton County CVB will manage many of the projects as part of its contract with the Hamilton County Visitor and Convention Commission, the governmentally appointed agency that oversees tourism operations in the county.
Supported projects were vetted through the Destination: Hamilton County Grant Review Committee in January. The Bureau will work with local municipalities to refine the remaining projects.
The Destination: Hamilton County Grant Review Committee approved the project concepts in January, with details to be determined. Projects may include up to $1 million in support for the Grand Park sports complex in Westfield; up to $1 million to support development of the Nickel Plate Arts Trail, including the purchase of two buildings in downtown Noblesville to house the NPAT headquarters and an arts and cultural center; up to $500,000 for an investment in Fishers to be determined later; up to $500,000 for enhancements to Hamilton County’s Strawtown Koteewi Park; and, additional support for signage and enhancements in Carmel.
The innkeepers tax, which is collected by the Hamilton County Treasurer and appropriated to the Hamilton County Visitor and Convention Commission, generates approximately $2.5 million annually, which must be spent on tourism development initiatives and marketing according to state statute.
The Hamilton County Visitor and Convention Commission contracts with the Hamilton County Convention and Visitors Bureau to lead local tourism marketing and development.
It is hoped that repayment of the bond can be shortened to 10 years rather than the scheduled 20, Myers said, through careful planning. Currently, the bond payments will represent about 10 percent of the total lodging tax collection for the year, or approximately $240,000.
“Innkeepers tax revenue must be spent on tourism development. We want to re-invest these dedicated dollars back into our communities, making them great places to live and to visit, said Myers. “Tourism development helps create jobs and investments which return taxes. We feel confident our research shows this is a win-win opportunity for the county.”
According to economic impact studies done by Certec Inc., tourism already contributes $16.8 million to the local tax base annually. Tourism contributes $365 million in total to the local economy, directly supporting more than 4,000 jobs and $82 million in wages.
Source: Hamilton County Convention and Visitors Bureau