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Brown County considering major investments with additional Innkeepers Tax revenue

By Donnie Burgess

Posted May 9, 2025

Scott Rudd, Brown County Councilmember, discusses Innkeepers Tax revenue. (Courtesy, Zoom)

Brown County plans to make major investments in tourism and quality of life using an increased Innkeepers Tax.

House Bill 1427 passed this legislative session. Part of that bill allows Brown County to increase its Innkeepers Tax from 5 to 8 percent, which shows up as a fee on overnight stays at places such as hotels, Airbnb and lodges.

County Council member Scott Rudd said an 8 percent Innkeepers Tax could generate up to $21 million over the next twenty years.

“That is a major investment,” Rudd said. “A kind of pivotal moment, if you will, in our tourism economy to start looking at some investments that will continue to help us grow.”

He said most small, tourism-based rural counties have already bumped their local Innkeepers Tax to 8 percent.

Tourism and community leaders have already started discussing potential investments, including parks and recreation, tourism-related economic development, tourism-related infrastructure, and quality-of-life improvements.

Those quality-of-life improvements could result in a new bicycle track, installation of more ball field lights at Deer Run Park, and general improvements to the Salt Creek trail, Pioneer Village, and county fairgrounds.

The council plans to vote on the tax increase July 1.

“And then by October 1, we hope to have a full, 20-year investment plan developed by the tourism community, and other community leaders, to carry us forward for the next 20 years,” he said.

Rudd expects the extra revenue will also help with potential property tax revenue loss.