LODGING TAX: Tax Rates and Collections by Local Governments, Calendar Year 2015*
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 permitted the enactment of several special lodging tax levies to fund designated purposes or projects (see Lodging Tax chapter in the Ohio Department of Taxation’s Annual Report for more information on special levies).
The maximum combined tax rate permitted in most locations is 6.00 percent. However, due to the enactment of special lodging taxes, in some counties the maximum combined tax rate exceeds 6.00 percent. These counties and the highest combined tax rates (as of December 31, 2015) are: Ashtabula (8.00%), Cuyahoga (12.50%), Fairfield (7.50%), Franklin (10.00%), Guernsey (9.00%), Hamilton (10.50%), Lucas (10.00%), Mahoning (8.0%), Muskingum (10.00%), Ross (7.25%), Summit (8.50%), and Trumbull (8.00%).
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 allocated to the convention and visitor’s bureau operating within 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 44* localities (or 10.6%) that did not report calendar year 2015 lodging tax data, 69 counties (including convention facility authorities), 148 townships and 210 municipalities are shown in this table as having a lodging tax: a total of 427 localities. Of the lodging taxes reported, 81.8 percent were levied at a 3.00 percent rate.
Incorporating prior year's data for those localities that did not respond and for jurisdictions that produced revenue, lodging tax collections for calendar year 2015 ranged from $38 in Elk Township (Vinton County) to $22,123,857 for the Franklin County CFA. It is estimated that the statewide total was $185,246,321; up 7.6 percent from calendar year 2014. Fifty localities with a lodging tax (or 12.0% of taxes currently in effect) reported no revenue for calendar year 2015.
* For those localities that did not submit data for calendar year 2015, previous year’s data was used.