Morgan County, IN Hotels & Lodging: Transient Occupancy Tax (2026)
Key Facts
- Tax rate
- 5% of gross retail lodging income
- Effective date
- November 1, 2010
- Covered stays
- Rentals of less than 30 days
- Payment due
- Within 20 days after month end
- Fund
- Convention, Visitors and Tourism Promotion Fund
- Exemption
- Stays of 30 days or more
Summary
In unincorporated Morgan County, Indiana, hotels, motels, boat motels, inns, tourist cabins, and college dormitories that rent rooms for less than 30 days must collect a 5% county innkeeper's tax under Code § 35.64, stacked on top of Indiana's state gross retail tax, with proceeds funding the county's tourism promotion fund.
§ 35.64 INNKEEPER'S TAX. ... (A) Beginning November 1, 2010, there shall be established the county innkeeper's tax (the "tax"), at the rate of 5% on all gross retail income derived from lodging subject to the tax within the county. (B) The tax shall be 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 of the following located in the county: (1) Hotel; (2) Motel; (3) Boat motel; (4) Inn; (5) College or university memorial union; (6) College or university residence hall or dormitory; or (7) Tourist cabin. ... (D) The tax shall be reported on forms approved by the County Treasurer and shall be paid monthly to the Treasurer. The tax shall be paid to the Treasurer no more than 20 days after the end of the month the tax is collected.
Full Breakdown
Under Morgan County Code § 35.64, the Board of Commissioners established a county innkeeper's tax effective November 1, 2010, at 5% of gross retail income from lodging rented for stays under 30 days in unincorporated Morgan County, Indiana. The tax reaches seven categories of lodging printed in the ordinance: hotels, motels, boat motels, inns, college or university memorial unions, college or university residence halls or dormitories, and tourist cabins. It excludes three situations: a student renting a college or university residence hall room while earning course credit from a college or university located in the county, anyone renting a room or accommodation for 30 days or more, and a not-for-profit entity that houses a student or participant engaged in educational or therapeutic activities the entity conducts.
Operators report the tax on forms the County Treasurer approves and must pay it monthly, no later than 20 days after the end of the collection month. The 5% county tax stacks on top of Indiana's state gross retail tax imposed under I.C. 6-2.5, so it shows up as a separate line alongside state sales tax on a guest's bill. Revenue flows into the Morgan County Convention, Visitors and Tourism Promotion Fund, limited to promoting conventions, visitors, and tourism through advertising, promotional activities, trade shows, special events, recreation, and Commission expenses.
The Board of Commissioners must send a certified copy of the section to the Commissioner of the State Department of Revenue. The ordinance traces to Ord. 1-2-30, passed September 3, 2010, and was amended by Ord. 1-2-30.1 in 2011 and Ord. 1-2-21.2 in 2013.
Violations & Fines
Section 35.64 does not print a separate penalty schedule for hotels, motels, inns, boat motels, tourist cabins, or college housing that skip the tax. Instead the ordinance sets compliance mechanics directly: operators must use County Treasurer-approved forms and pay within 20 days after the month closes, and a certified copy of the section goes to the State Department of Revenue for oversight.
Frequently Asked Questions
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Sources & Official References
Other rules in Morgan County
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