Perrysburg proposes hotel tax increase to boost economic development and safety funding

During the recent Finance Committee meeting on February 11, 2025, the Perrysburg City Council discussed a proposal to increase the hotel tax from 3% to 6%. This significant change aims to enhance the city’s economic development efforts and support local safety forces, which are currently operating at or near capacity.

The proposed tax increase is designed to generate sufficient resources for a more strategic approach to economic development. By collaborating with regional partners, the city plans to acquire key real estate and attract businesses that align with community needs. Notably, the increase would not impose additional taxes on Perrysburg residents; instead, it would be funded by visitors staying in local hotels.

Comparative analysis presented during the meeting highlighted that even after the proposed increase, Perrysburg's hotel tax would remain competitive. The average hotel tax in the region is approximately 7%, with neighboring areas like Erie County at 7%, Hancock County at 9%, and Lucas County at 10%. The tax increase would result in only a modest difference in hotel costs, estimated at $2 to $6 per night for rooms priced between $100 and $200. This positions Perrysburg as a more affordable option compared to many surrounding communities.

Additionally, the proposal includes extending the 6% tax to short-term rentals (STRs), ensuring equitable treatment between hotels and STRs. This move is expected to bolster tax revenue, which would support the convention and visitors bureau's initiatives to attract more visitors to the area.

The discussions reflect a proactive approach by the city to enhance its economic landscape while maintaining a competitive edge in the hospitality sector. As the council considers this proposal, the implications for local businesses and community development remain a focal point for future meetings.