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.