House Bill 1427, introduced in the Indiana House on April 16, 2025, aims to enhance funding for tourism and convention infrastructure across the state. The bill proposes the establishment of a tourism capital improvement fund, which will be financed through a four percent tax rate on certain tourism-related revenues. This fund is intended to support capital improvements that promote conventions, tourism, and recreation within counties.

Key provisions of the bill include the allocation of funds to county and city governments, as well as nonprofit organizations, for projects that enhance local tourism infrastructure. The Indiana Tourism Commission will oversee the distribution of these funds, with transfers occurring quarterly, contingent upon approval by the commission.

The bill has sparked notable discussions among lawmakers, particularly regarding the balance between tourism funding and other budgetary needs. Some legislators have expressed concerns about the long-term sustainability of funding sources, while others argue that investing in tourism infrastructure can yield significant economic benefits, including job creation and increased local revenue.

Economic implications of House Bill 1427 are significant, as proponents believe that improved tourism facilities will attract more visitors, thereby boosting local economies. However, critics caution that reliance on tourism funding may divert resources from essential services.

As the bill progresses through the legislative process, it is expected to face further scrutiny and potential amendments. Stakeholders, including local governments and tourism advocates, are closely monitoring developments, as the outcome could shape Indiana's tourism landscape for years to come. The bill is set to take effect on July 1, 2025, if passed, marking a pivotal moment for the state's approach to tourism and convention funding.