Tax Data Series

Sales and Use Tax

Lodging Tax
Amounts Collected by Local Governments, Calendar Year 2000

Ohio's Revised Code permits local governments to levy a tax on lodging furnished to transient guests by hotels and motels within their jurisdiction. Municipalities or townships may levy a lodging tax of up to 3 percent, plus an additional tax of up to 3 percent if they are not located (wholly or partly) in a county that has levied a lodging tax. Counties may levy a lodging tax of up to 3 percent, but can not initiate such a tax in any municipality or township that has levied the additional lodging tax.

In addition, Ohio law permitted the enactment of several special lodging tax levies during a limited period of time. During a three month period in 1985, counties were authorized to enact an additional lodging tax for convention center construction (Lucas County enacted such a tax at 3 percent). During a six month period in 1988, county convention facilities authorities were authorized to enact an additional lodging tax for financing a new convention or sports center (Franklin, Guernsey, and Muskingum County CFA's enacted such a tax). Counties were permitted to enact an additional lodging tax for port authority educational and cultural facilities during a three month period beginning in 1992 (Cuyahoga County enacted such a tax at 1.5 percent for the rock and roll hall of fame). Counties were authorized to enact an additional lodging tax for municipal educational and cultural facilities during a three month period in 1993 (Summit County enacted such a tax at 1.5 percent for the national inventors hall of fame). Lucas County enacted a special lodging tax under a 1997 law, with the proceeds used by the county convention and visitors bureau to be used to promote and market the region. Finally, a 1999 law authorized a 45-day period during which qualified counties could enact a special lodging tax of up to 4 percent for financing a new county convention facility.The maximum combined tax rate permitted in most locations is 6 percent. However, due to the enactment of special lodging taxes, in some counties the maximum combined tax rate exceeds 6 percent. These counties and the highest combined tax rates (as of December 31, 2000) are: Cuyahoga (7.5%), Fairfield (7.5%), Franklin (10%), Guernsey (9%), Lucas (8%), Muskingum (8%), Richland (9.5%), and Summit (7.5%).

For most municipalities and townships, revenue from the lodging tax goes to the general revenue fund. However, for municipalities or townships that levy the additional tax of up to 3 percent, the revenues from the additional tax are divided between the general revenue fund of the municipality or township and the convention and visitors' bureau (at least 50 percent) operating in the county. To those municipalities and townships within the county that do not levy a lodging tax, counties are required to return a uniform percentage (not to exceed 33 1/3 percent) of the revenue from the county lodging tax generated within such municipalities or townships. The remainder of the revenue is deposited in a separate fund to be used for county convention and visitors' bureau expenses.

Although 22 localities did not report calendar year 2000 lodging tax data, 57 counties, 96 townships and 131 municipalities (106 cities and 25 villages) reported having a lodging tax. Notwithstanding the special levies listed above, rates range from 1.0 percent to 6.0 percent. Approximately 77 percent of the lodging taxes reported were at a 3 percent rate. For jurisdictions that produced revenue, lodging tax collections for calendar year 2000 ranged from $52 in Washington Township (Hocking County) to $13,208,382 for the Franklin County CFA, with a statewide total of $94,803,136. Eighteen localities with a lodging tax reported no revenue for calendar year 2000.