1. (a) If a tax is imposed under section 3 of this chapter, the county treasurer shall establish the following funds:

   1. (1) A convention, visitor, and tourism promotion fund (before its repeal).
   2. (2) A convention, visitor, tourism promotion, and capital fund.

   3. (3) A municipal tourism capital fund, if the county fiscal body adopts an ordinance to increase the tax rate under section 3 of this chapter and both the county fiscal body and the county executive adopt ordinances approving the establishment of a tourism capital fund.

      The county treasurer shall deposit in each fund all amounts the county treasurer receives under section 3 of this chapter and in accordance with the allocations required by sections 7.5 and 8.5 of this chapter.

2. (b) The county auditor shall issue a warrant directing the county treasurer to transfer money from the convention, visitor, tourism promotion, and capital fund and municipal tourism capital fund to the commission's treasurer if the commission submits a written request for the transfer.

3. (c) Money in a convention, visitor, tourism promotion, and capital fund, or money transferred from such a fund under subsection (b), may be expended only for the following purposes:

   1. (1) To promote and encourage conventions, visitors, and tourism within the county. Expenditures under this subdivision may include expenditures for advertising, promotional activities, trade shows, special events, and recreation.
   2. (2) For infrastructure projects that improve or benefit the tourism economy. Expenditures under this subdivision may include acquisition, construction, alteration, improvements, or installation costs of any existing tangible property or tangible property that is to be constructed. Expenditures under this subdivision may include fees for professional services such as architectural, building consulting or planning, and infrastructure feasibility.
4. (d) Money in a municipal tourism capital fund, or money transferred from such a fund under subsection (b), may be expended on infrastructure projects that improve or benefit the tourism economy. Expenditures may include acquisition, construction, alteration, improvements, or installation costs of any existing tangible property or tangible property that is to be constructed. Expenditures may include fees for professional services such as architectural, building consulting or planning, and infrastructure feasibility.

As added by P.L.236-2023, SEC.121. Amended by P.L.157-2026, SEC.186.