County Council Approves New Innkeepers' Tax
A county council has approved a new tax on short-term lodging rentals to fund tourism promotion.
April 15, 2026
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Source: bernewitness.com
The St. Joseph County Council in Indiana has approved a new innkeepers' tax on short-term rental properties. The measure, passed on April 8, 2026, extends the existing 6% hotel tax to platforms like Airbnb and Vrbo.
The tax is expected to generate approximately $400,000 in new annual revenue. These funds are designated for the county's tourism promotion efforts, managed by the local convention and visitors bureau.
Supporters argue the tax creates a level playing field between traditional hotels and short-term rentals while boosting the local tourism economy. The ordinance will take effect on July 1, 2026, following final approval from the county commissioners.
❓ Frequently Asked Questions
What is an innkeepers' tax?
An innkeepers' tax is a levy on lodging facilities, typically paid by guests, with revenue used to promote local tourism and fund visitor-related facilities.
Which rentals are affected by this new tax?
The tax applies to short-term rentals booked through platforms like Airbnb and Vrbo, extending the existing hotel tax to these properties.
How will the tax revenue be used?
The estimated $400,000 in annual revenue will be allocated to the St. Joseph County Convention and Visitors Bureau to fund tourism marketing and promotion.
