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Taxes On Short-Term Rentals OK’d By Senate Panel

By Brandon Smith, IPB News | Published on in Business, Community, Government, Statewide News
Sen. Karen Tallian (D-Ogden Dunes) says her bill doesn’t impact those who rent out their homes for 15 days a year or less. (Lauren Chapman/IPB News)
Sen. Karen Tallian (D-Ogden Dunes) says her bill doesn’t impact those who rent out their homes for 15 days a year or less. (Lauren Chapman/IPB News)

Short-term rental owners would have to pay sales and innkeeper taxes under legislation approved by a Senate committee Tuesday.

The measure follows up on last year’s bill to regulate those who rent their homes.

Some short-term rental sites – including Airbnb – already collect taxes on behalf of their users. But others don’t – and the owners of the properties would be responsible for paying Indiana sales and innkeeper taxes. Sen. Karen Tallian (D-Ogden Dunes) says her bill doesn’t impact those who rent out their homes for 15 days a year or less.

“Even if you rent your house for 20 days, you get the first 15 days as an exemption,” Tallian says.

Hamilton County Tourism President Brenda Myers says the bill is about fairness. She says her community averages about two hotels-worth of short-term rentals per weekend.

“And that basically means $300,000 in taxes a year that are not generated as a result,” Myers says.

The bill now goes to the Senate floor.