Indiana Code Title 6. Taxation § 6-9-53-3

Sec. 3. (a) The fiscal body of the county may levy a tax on every person engaged in the business of renting or furnishing, for periods of less than thirty (30) days, any room or rooms, lodgings, or accommodations in any:

located in the county.

(b) The tax does not apply to gross income received in a transaction in which:

(c) Subject to subsection (d), the tax may not exceed the rate of eight percent (8%) on the gross retail income derived from lodging income only and is in addition to the state gross retail tax imposed under IC 6-2.5.  However, if the county fiscal body increases the tax rate to more than six percent (6%), the portion of the tax rate that exceeds six percent (6%) shall expire on December 31, 2045.

(d) Notwithstanding subsection (c), the tax rate imposed by the fiscal body of Knox County under this chapter may not exceed five percent (5%), or, if the county fiscal body increases the tax rate to more than six percent (6%) under subsection (c), may not exceed seven percent (7%), if either of the following apply:

(e) The tax shall be imposed, paid, and collected in the same manner as the state gross retail tax is imposed, paid, and collected under IC 6-2.5.