Short-term rentals in Michigan City, explained properly.

Section 26-326(g) makes the permit non-transferable. The new owner must submit an application for a new permit and pay the initial permit fee set in Section 50-167(a).

If any information the owner gave the city in the permit application changes, the owner must give the updated information to the planning and inspection department in writing within 30 business days after the change (Sec. 26-326(f)).

Section 26-328(a), citing Indiana Code 36-1-24-18, says an owner who rents a short-term rental without first obtaining a valid permit from the city planning and inspection department commits a class C infraction, and each short-term rental transaction the provider completes without a permit is a separate violation of the article.

With the exception of renting without a permit, failure to comply with the other terms and conditions of the article is a violation of the article and is subject to a fine under Section 50-167(b), which sets the amount at $500.00. The section history shows Ordinance No. 4749 of November 6, 2024. This fine is marked for review pending the effective date of the fee and fine schedule.

The planning and inspection department must give the owner written notice of the alleged violation and the revocation, sent by registered or certified mail to the address on the permit application. The owner may request a hearing by filing a written petition with the clerk for the board of public works and safety within 10 days after the notice was served. After the hearing the board either sustains or denies the revocation, its decision is final, and it must reduce its findings of fact to writing. A notice becomes an order automatically if no petition is filed within 10 days. A revoked permit's owner may apply again, but a new permit may not be issued until outstanding fines are paid (Sec. 26-326(e)). Section 26-327 was amended by Ordinance No. 4720 on February 6, 2024.

The Department of Revenue describes the county innkeeper's tax (CIT) as a county tax on the rental of rooms and accommodations for periods of less than 30 days, applied in addition to state sales tax, and lists houses, apartments, condominiums and other personal residences available for rent among taxable accommodations. It does not apply to rentals of 30 days or more, and transactions exempt from state sales tax are not subject to it. An owner whose primary personal residence is rented for fewer than 15 days in the current or preceding calendar year, in line with the 14-day rent rule under Section 280A(g) of the Internal Revenue Code, is exempt from sales tax and any CIT, but all transactions through a marketplace facilitator are subject to CIT. Rates and collection points vary by county and are shown on each place's page; the Department says its table may not show all current rates. The state sales tax rate was not stated on the page read.

The Department says marketplace facilitators must register with the Department to collect CIT for all adopting counties, whether or not the county collects locally, and must remit all CIT directly to the Department, which distributes it to the county. When a personal residence is rented through a marketplace facilitator, the homeowner does not collect and pay CIT on that booking. The page covers CIT only; it does not say here whether platforms collect state sales tax on these stays.