Mayors seek municipal innkeepers fee to fund convention and sports infrastructure; hospitality groups warn of stacking and competitiveness risks

Mayors from Carmel and New Haven presented SB 242 seeking authority for a municipal innkeepers fee (a capped flat fee of up to $5 per room per night, as written) limited to those cities. Carmel Mayor Sue Finkham described a planned hotel and conference center that she said would drive nearly $1 billion of investment in a district and argued local dedicated revenue is needed to finance supporting infrastructure. "This project will complement, not compete with the Indiana Convention Center," she said, and urged a balanced structure that dedicates proceeds to tourism‑related investment, not general government.

Opponents from the hospitality industry, including Patrick Tam (Indiana Restaurant Lodging Association) and Jim Epperson (Indiana Tourism Association), raised objections on economic and structural grounds. Tam argued a municipal fee stacked on top of county innkeepers taxes and state sales taxes would increase effective guest charges and could make the local destination less competitive for conventions and youth‑sports groups that are price sensitive. He used an example to show how a flat fee plus existing taxes and rebates can produce a high effective tax rate on hotels in affected cities.

New Haven's mayor, Mike McMichael, said his city is economically distinct (few hotels in Eastern Allen County) and that local control or a contract with Visit Fort Wayne could help direct dollars to promote youth‑sports facilities and build local market demand. He said the cities could alternatively accept a percentage fee instead of a flat amount and indicated openness to amendments.

Committee members asked about regional coordination, rebate mechanics for sports events and long (22‑year) project terms in the bill. No vote was taken; the bill was held for further review and possible amendment to narrow purposes and address stacking concerns.