Tax Data Series

Sales and Use Tax

Lodging Tax
Amounts Collected by Local Governments, Calendar Year 1990

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 if any municipality or township located wholly or partly within the county has levied the additional lodging tax.

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 such a tax). The cumulative tax for municipalities and townships is a maximum of 6 percent provided the county in which they are located has not enacted the tax. The county maximum rate is 6 percent. The maximum combined rate for any location is 10 percent.

For most municipalities and townships, revenue from the lodging tax goes to their 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 counties, 76 townships and 96 municipalities reported having lodging taxes for calendar year 1990 with rates ranging from 1.0 percent to 6.0 percent. Approximately 80.2 percent of the lodging taxes reported were at a 3 percent rate. For jurisdictions that produced revenue, lodging tax collections for calendar year 1990 ranged from $9 in the City of Conneaut to $6,549,204 in Franklin County, with a statewide total of $44,981,805.