Dearborn County, IN Hotels & Lodging: Transient Occupancy Tax (2026)
Key Facts
- Tax rate
- 5% of gross retail income from lodging
- Rental period covered
- Less than 30 days
- Listed properties
- Hotel, motel, boat motel, inn, tourist cabin
- Collected by
- State of Indiana Department of Revenue
- Paid to county
- Monthly, to the Dearborn County Treasurer
- Revenue fund
- Convention, Recreation, and Visitor Promotion Fund
- Code section
- Dearborn County Code § 35.01
Summary
Dearborn County, Indiana imposes a 5% innkeeper's tax on gross retail income from lodging rented for periods of less than 30 days in hotels, motels, boat motels, inns and tourist cabins. It sits on top of the state gross retail tax and is collected by the Indiana Department of Revenue.
(A) A county tax in the amount of 5% is hereby imposed on gross retail income derived from lodging income. The tax is imposed on the gross retail income derived from lodging income only and is in addition to the State of Indiana gross retail tax imposed under I.C. 6-2.5. (B) The innkeeper's tax is hereby imposed on every person engaged in the business of renting or furnishing for periods of less than 30 days, any room or rooms, lodgings, or accommodations in any: (1) Hotel; (2) Motel; (3) Boat motel; (4) Inn; and/or (5) Tourist cabin. (C) The innkeeper's tax shall be reported on forms approved by the State of Indiana Department of Revenue. The innkeeper's tax shall be imposed, paid, and collected by the State of Indiana Department of Revenue in exactly the same manner as the State of Indiana gross retail tax is imposed, paid, and collected under I.C. 6-2.5. (D) The amounts received from the innkeeper's tax imposed under this section shall be paid monthly by the Treasurer of the State of Indiana to the Dearborn County Treasurer upon warrants being issued by the Auditor of the State of Indiana.
Full Breakdown
Section 35.01 of the Dearborn County Code, adopted by the County Council as Ord. 1-1995 and amended by Ord. 2019-010, sets a county tax of 5% on gross retail income derived from lodging income. The code is explicit that the tax reaches lodging income only and is in addition to the State of Indiana gross retail tax imposed under I.C. 6-2.5.
The tax falls on every person engaged in the business of renting or furnishing any room, lodgings or accommodations for periods of less than 30 days. Five kinds of property are listed: a hotel, a motel, a boat motel, an inn, and a tourist cabin. The ordinance does not name short-term rentals, vacation homes or bed and breakfasts, so the printed list is the measure of who is covered.
The county does not run its own collection desk. Under division (C), the innkeeper's tax is reported on forms approved by the State of Indiana Department of Revenue, and it is imposed, paid and collected by that department in exactly the same manner as the state gross retail tax under I.C. 6-2.5. An operator in unincorporated Dearborn County therefore files with the state, not with the Board of Commissioners.
Division (D) routes the money back. The Treasurer of the State of Indiana pays the amounts received monthly to the Dearborn County Treasurer, upon warrants issued by the Auditor of the State of Indiana. The County Treasurer deposits everything received into the Dearborn County Convention, Recreation, and Visitor Promotion Fund.
Divisions (E) and (F) control spending. The Dearborn County Auditor issues a warrant directing the Treasurer to transfer money from that fund to the Treasurer of the Dearborn County Convention, Visitor, and Tourism Commission when the Commission submits a written request. The Commission may spend the money only to promote and encourage conventions, trade shows, special events, recreation, and visitors for industrial development within Dearborn County, or for any other purpose later authorized by law.
This page covers Dearborn County, Indiana, in the southeast corner of the state. It has no connection to Dearborn, Michigan, or to Dearborn Heights.
Violations & Fines
Section 35.01 contains no penalty clause of its own. Because the tax is imposed, paid and collected by the Indiana Department of Revenue in the same manner as the state gross retail tax under I.C. 6-2.5, an operator who fails to report or remit deals with that department, not with a county citation process. The printed text does not state a county fine, interest rate or late fee.
Frequently Asked Questions
What is the lodging tax rate in unincorporated Dearborn County, Indiana?
Who collects the Dearborn County innkeeper's tax?
Does the tax apply to stays of 30 days or longer?
Where does the money go?
Does the ordinance name short-term rentals?
Sources & Official References
Other rules in Dearborn County
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