Operative Text
Sec. 20. This section is intended as notice to an owner as defined in section 2 of this chapter. An owner of short term rental property who makes a short term rental in which payments for the room, lodging, or other accommodation are not made through a marketplace facilitator (as defined by IC 6-2.5-1-21.9) may be liable for collecting and remitting the following taxes on consideration received by the owner for the short term rental: (1) State gross retail tax imposed under IC 6-2.5-4-4. (2) Innkeeper's tax imposed under IC 6-9.
Indiana Code § 36-1-24-20 serves as a formal notice to short-term rental property owners that when rental payments are processed outside of a marketplace facilitator platform, the owner — rather than the platform — may bear responsibility for collecting and sending two categories of taxes to the state: the state gross retail (sales) tax and the innkeeper's tax. The provision does not create a new tax obligation itself; it alerts owners that these existing tax duties can fall directly on them depending on how payments are handled. The distinction between marketplace-facilitated and non-facilitated transactions is central to determining who handles tax collection and remittance.
Plain English — not legal advice.
Under Ind. Code § 36-1-24-20, operators of short-term rental properties who accept payments directly from guests — rather than through a qualifying marketplace facilitator — generally take steps to understand their obligations regarding state gross retail tax (IC 6-2.5-4-4) and innkeeper's tax (IC 6-9). Compliant operators typically maintain records of how each rental transaction is processed and confirm whether a platform they use qualifies as a marketplace facilitator under IC 6-2.5-1-21.9. Owners who collect payments through multiple channels often track each channel separately to ensure the correct party is handling tax remittance for each transaction.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
Ind. Code § 36-1-24-20 is directed at property owners rather than tenants, but guests renting short-term accommodations may find it useful context for understanding why tax charges appear on direct-booking invoices. When a rental is not booked through a marketplace facilitator, the owner is the party responsible for collecting applicable taxes, which can affect the total amount a guest is charged. Guests who have questions about tax charges on a direct rental booking may consult the Indiana Department of Revenue or a tenant-rights organization for general guidance on how this provision applies.
General guidance for tenants — not legal advice for your specific situation. Consult a tenant-rights organization or attorney for advice on your case.
Generated October 14, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.
Effective Timeline
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