Tax Data Series

Sales and Use Tax

Lodging Tax
Amounts Collected by Local Governments, Calendar Year 1994

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 3 percent lodging tax for convention center construction (Lucas County enacted such a tax). During a six month period in 1988 County Convention Facilities Authorities were authorized to enact an additional 4 percent lodging tax for financing a new convention or sports center (Franklin County CFA enacted a 4 percent tax and the Guernsey County CFA enacted a 3 percent tax). Counties were permitted to enact an additional 1.5 percent lodging tax for port authority educational and cultural facilities during a three month period beginning in 1992 (Cuyahoga County enacted such a tax for the rock and roll hall of fame). Finally counties were authorized to enact an additional 1.5 percent lodging tax for municipal educational and cultural facilities during a three month period in 1993 (Summit County enacted such a tax for the Inventure Place). The maximum combined tax rate permitted in most locations is 6 percent. The special lodging taxes imposed by Cuyahoga, Franklin, Guernsey and Summit counties, though, bring the maximum combined rate in portions of these counties to 7.5 percent, 10 percent, 9 percent and 7.5 percent, respectively.

For most municipalities and townships, revenue from the lodging tax goes to the general revenue fund. However, for municipalities or townships who 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. Counties are required to return to municipalities and townships within the county that do not levy a lodging tax, 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.

Forty-nine counties, 77 townships and 106 municipalities (92 cities and 14 villages) reported having lodging taxes for calendar year 1994. Notwithstanding the special levies listed above, rates range from 1.0 percent to 6.0 percent. Approximately 70 percent of the lodging taxes reported were at a 3 percent rate. For jurisdictions that produced revenue, lodging tax collections for calendar year 1994 ranged from $408 in Pleasant Township (Madison County) to $8,121,988 in Franklin County, with a statewide total of $60,632,363.