House Bill 1427, introduced in Indiana on April 16, 2025, aims to bolster the state's convention, visitor, and tourism sectors by establishing a dedicated fund and commission to promote these industries. The bill proposes a tax rate of up to eight percent on certain transactions, with the revenue directed into a newly created convention, visitor, and tourism promotion fund. This fund will be used exclusively for activities that encourage tourism, such as advertising, trade shows, and special events.

One of the bill's key provisions mandates that if a county adopts the ordinance after the fifteenth day of a month, the tax will take effect the following month. Additionally, counties that have previously issued bonds backed by this tax will continue to allocate funds for those obligations until they are fully paid.

The establishment of a commission to oversee the promotion of tourism is another significant aspect of the bill. The commission will consist of members engaged in the tourism industry, ensuring that those directly involved have a voice in shaping initiatives that affect their businesses. This commission can also be formed jointly with neighboring counties, fostering regional collaboration.

Debate surrounding House Bill 1427 has highlighted concerns about the potential economic impact on local businesses and the effectiveness of the proposed tax in generating sufficient revenue. Supporters argue that the bill will enhance Indiana's appeal as a tourist destination, potentially leading to increased economic activity and job creation. Critics, however, worry about the burden of additional taxes on consumers and the risk of misallocation of funds.

As Indiana continues to recover from the economic impacts of the pandemic, the implications of House Bill 1427 could be significant. If successful, the bill may not only revitalize the tourism sector but also contribute to broader economic growth in the state. The next steps for the bill will involve further discussions and potential amendments as it moves through the legislative process, with stakeholders closely monitoring its progress and potential effects on their communities.