House Bill 1427, introduced in the Indiana House on April 16, 2025, aims to establish a new tax framework to support local tourism and convention initiatives across counties in Indiana. The bill proposes a tax that will be imposed, paid, and collected similarly to the existing state gross retail tax, ensuring a streamlined process for both taxpayers and the state.

Key provisions of the bill include the creation of a convention, visitor, and tourism promotion fund, which will receive all tax revenues collected under this new framework. The county treasurer is tasked with managing this fund, which is designated for promoting tourism, supporting public safety related to tourism, and funding various promotional activities such as advertising and special events. Additionally, the bill stipulates that if a county has previously issued bonds backed by revenues from a related tax, it must continue to allocate funds for that purpose until the bonds are fully paid.

The introduction of House Bill 1427 has sparked discussions among lawmakers and stakeholders regarding its potential impact on local economies. Proponents argue that the bill could significantly enhance tourism efforts, leading to increased revenue and job creation in the hospitality sector. However, some critics express concerns about the reliance on tax revenues for funding tourism initiatives, questioning the long-term sustainability of such a model.

As the bill progresses through the legislative process, it may undergo amendments based on feedback from various stakeholders, including local governments and tourism boards. The outcome of House Bill 1427 could have lasting implications for Indiana's tourism industry, potentially reshaping how counties fund and promote their tourism efforts in the coming years. The next steps will involve further debates and discussions in the Indiana House, where lawmakers will assess the bill's provisions and its overall impact on the state's economy.