Sales and Use Tax
Lodging Tax
Amounts Collected by Local Governments, Calendar Year
2001
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, 2001)
are: Cuyahoga (7.5%), Fairfield (7.5%), Franklin (10%),
Guernsey (9%), Lucas (8%), Muskingum (8%), 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 15 localities did not report calendar year 2001
lodging tax data, 59 counties, 102 townships and 138
municipalities (109 cities and 29 villages) reported having a
lodging tax. Notwithstanding the special levies listed above,
rates range from 1.0 percent to 6.0 percent. Approximately 78
percent of the lodging taxes reported were at a 3 percent
rate. For jurisdictions that produced revenue, lodging tax
collections for calendar year 2001 ranged from $353 in Elk
Run Township (Columbiana County) to $12,999,042 for the
Franklin County CFA, with a statewide total of $92,662,409.
Twenty-nine localities with a lodging tax reported no revenue
for calendar year 2001.