SB 242 Indiana Senate · 2026 Regular Session

Innkeeper's tax.

Summary

Authorizes the city of New Haven to impose an innkeeper's tax at a flat rate that does not exceed $5 per night. Amends provisions regarding distribution and uses of the Hamilton County innkeeper's tax. Makes corresponding changes to statutes concerning innkeeper's tax administration.

Issues: ✓ Budget & Taxes

Bill status passed 3 of 5 stages cleared

Introduction

Jan 2026

Committee Review

Jan 2026

Senate Passage

Jan 2026

House Passage

Governor

Introduced Jan 8, 2026 Last action Jan 28, 2026

Maddy AI version diff · 2 comparisons

What changed between versions

Engrossed Senate Bill (H) → Senate Bill (S) · 4 edits

MODERATE

The bill number was changed from SB 242.2 to SB 242.1, and the effective date was made retroactive to July 1, 2025, in addition to the original July 1, 2026 date. A repealed section regarding Orange County's food and beverage tax was removed, and the bill now explicitly adds a tourism capital fund option for counties that increase their innkeeper's tax rate.

Scope change

The bill's applicability was expanded to include Orange County by removing a conflicting food and beverage tax provision, and the effective date was extended retroactively to July 1, 2025.

TIMELINE

The effective date was changed from July 1, 2026 only to include a retroactive effective date of July 1, 2025.

REQUIREMENT

A repealed section regarding Orange County's food and beverage tax was removed to prevent conflicts with the innkeeper's tax provisions.

FISCAL

A new tourism capital fund option was added for counties that choose to increase their innkeeper's tax rate.

TECHNICAL

The bill number was updated from SB 242.2 to SB 242.1, and the digest was updated with new citation information.

Floor votes · Senate Jan 26, 2026

How they voted

37–7

Passed · 4 other

Total votes 48

Jan 26, 2026

D Democratic9

7 Yea 2

77% Yea

R Republican39

30 Yea 7 Nay 2

76% Yea

Vote distribution

All Yea All Nay Mixed No data

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Amendments

Jan 26, 2026

Upper · Passed

Third reading: passed; Roll Call 81: yeas 37, nays 7

upper

Jan 22, 2026

Upper · Passed

Amendment #1 (Holdman) prevailed; voice vote

upper

Jan 22, 2026

Upper · Passed

Amendment #5 (Baldwin) prevailed; voice vote

upper

Jan 22, 2026

Upper · Passed

Amendment #2 (Holdman) prevailed; voice vote

upper

Jan 20, 2026

Upper · Passed

Committee report: amend do pass, adopted

upper

3 primary · 2 co-sponsors