Login | May 06, 2025
Bill would implement sales, use taxes on short-term rental stays in the state
KEITH ARNOLD
Special to the Legal News
Published: May 5, 2025
A pair of lawmakers in the Ohio House of Representatives is championing a bill to extend state and local sales and use taxes to short-term rental stays.
Current law only allows hotels to collect a tax that goes directly to the convention and visitors bureau in the county in which the hotel operates, according to Rep. Adam Bird of New Richmond.
House Bill 161 was devised to expand collection of those lodging taxes in addition to state and local taxes to short-term rentals, such as those marketed by popular platforms Airbnb and Vrbo.
Bird noted that East Fork Lake, which is located in his district in the southwest part of the state, attracts high-school and college rowing teams from throughout the Midwest for competitions.
“Many of those who are touring the fun, unique attractions that exist within (the area) are staying in short-term rentals and, thus, the convention and visitors bureau is missing revenue that they could be using to promote and invite more tourism into the county,” Bird said during a Development Committee hearing.
Joint sponsor of the bill, Rep. Jim Thomas of Jackson Township, estimated that Stark County during the past year lost more than $134, 841 in tax revenue as a result of short-term rental operators not collecting the county’s 6 percent lodging tax on overnight stays.
“The loss of revenue to the state from the 5.75 percent sales and use tax was approximately $129,226,” he said. “The loss of revenue to the county from the 0.75 percent sales tax rate was approximately $16,856.”
He based the figures on the 170 current short-term rental listings in the county and an average daily rate of $131, which generated $2.4 million in revenue.
“In 2023, travel and tourism generated $2.2 billion in economic impact in Stark County,” Thomas said. “Travel and tourism spending supported 6.5 percent of all jobs and generated $217.2 million in household incomes across (the county). Unfortunately, Stark County and Visit Canton (the local convention and visitors bureau) have not been receiving state and local sales and use taxes from short-term rental stays.”
Under current law, counties, municipalities and townships are authorized to expand the definition of hotel to include establishments with fewer than five rooms to their lodging tax, according to analysis of HB 161.
The bill extends state and local sales and use taxes to stays at establishments with four or fewer rooms––whether in one or more structures––that are advertised and used as sleeping accommodations for guests.
Another provision of the bill calls for the operator of a short-term rental platform, such as Airbnb, to collect and remit the taxes addressed in the legislation.
“As the members of this committee are well aware, tourism contributes to the quality of life, job market and wealth of the community,” Thomas said.
Rep. Mark Hiner, R-Howard, is sole co-sponsor of HB 161, which awaits further consideration by the committee.
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