Tax Data Series

Sales and Use Tax

Lodging Tax
Amounts Collected by Local Governments, Calendar Year 2004

The Ohio Revised Code permits local governments to levy a tax on lodging furnished to transient guests by hotels and motels within that local jurisdiction. Municipalities or townships may levy a lodging tax of up to 3.0 percent, plus an additional tax of up to 3.0 percent if they are not located (wholly or partly) in a county that has not levied a lodging tax. Counties may levy a lodging tax of up to 3.0 percent, but may not levy such a tax in any municipality or township that has already levied the additional lodging tax.

In addition, Ohio law has permitted at various times the enactment of several special lodging tax levies to fund designated purposes or projects (see Lodging Tax chapter in "A Brief Summary of State and Local Taxes in Ohio" for more information on special levies).

The maximum combined tax rate permitted in most locations is 6.0 percent. However, due to the enactment of special lodging taxes, in some counties the maximum combined tax rate exceeds 6.0 percent. These counties are (as of December 31, 2004): Cuyahoga (7.50%), Fairfield (7.50%), Franklin (10.0%), Guernsey (9.0%), Hamilton (10.50%), Lucas (8.0%), Muskingum (8.0%), and Summit (7.50%).

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 3.0 percent, at least 50 percent of the revenues from the additional tax are provided to the county and the remainder goes to the municipal or township general fund. 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.

Including the 22 localities that did not report calendar year 2004 lodging tax data, 60 counties, 120 townships and 162 municipalities (126 cities and 36 villages) are shown in this table as having a lodging tax; a total of 342 localities. Excluding those areas with the special levies listed above, rates range from 1.0 percent to 6.0 percent. Approximately 79.8 percent of the lodging taxes reported were at a 3.0 percent rate.

For jurisdictions that produced revenue, lodging tax collections for calendar year 2004 ranged from $99 in the Village of Chippewa Lake (Medina County) to $13,332,312 for the Franklin County Convention Facilities Authority. Incorporating prior year's data for those localities that did not respond, it is estimated that the statewide total was $106,134,477. Twenty-eight localities with a lodging tax reported no revenue for calendar year 2004.