Local officials, tourism groups tell Senate committee to preserve home rule on short‑term rentals

At a hearing before the Senate Local Government Committee, municipal leaders, township officials, tourism groups and convention‑and‑visitors bureaus testified in opposition to Senate Bill 104, arguing the bill would strip local governments of longstanding zoning and public‑safety tools for managing short‑term rentals.

The testimony came during the committee’s third hearing on SB 104. Witnesses repeatedly said they support two elements of the bill — a registration requirement and platform collection of lodging taxes — but said the bill’s sweeping preemption of local zoning and regulation would prevent municipalities and townships from addressing noise, safety, septic and housing‑stock problems that vary by community.

Bevin Schneck, Director of Public Affairs at the Ohio Municipal League, told the committee the League represents more than 730 cities and villages and “seeks to preserve the Municipal Home Rule authority found in Article XVIII of the Ohio Constitution.” Schneck said the League opposes statewide preemption that would prevent municipalities from deciding whether and how to regulate short‑term rentals.

Kyle Brooks, director of governmental affairs for the Ohio Township Association, said SB 104 “would effectively strip over half of Ohio’s townships of their zoning authority” and noted the draft’s $20 annual registration fee is unlikely to cover the administrative costs of enforcement. Brooks said townships support the lodging‑tax remittance provision in the bill but want local discretion over land‑use questions.

Mayors and city managers from communities across Ohio described local experiences they said justify local control. Paul Kumar, mayor of Bay Village, recalled a 2019 case in which an absentee owner’s rental drew about 500 people for a private event, creating noise, parking congestion and public‑safety responses; his city later adopted an ordinance banning rentals of less than 29 days. Patrick Ward, mayor of Lyndhurst, said local zoning and rental‑registration systems protect tenant safety and neighborhood character; Lyndhurst charges $100 per year for rental registration.

Tourism and visitor organizations urged a balanced approach. Beth Carmichael of Trumbull County Tourism and the Ohio Association of Convention and Visitors Bureaus warned that unregulated short‑term rental growth can reduce long‑term housing availability and that lodging‑tax collection is important for funding promotion and infrastructure. Larry Fletcher of Shores and Islands Ohio said short‑term rentals are an important part of the lodging inventory in Erie and Ottawa counties but that local control is needed so municipalities can respond to seasonal demand and preserve year‑round residents.

Several witnesses pointed to public‑safety or infrastructure concerns unique to island and lakeshore communities. Ron Ehrbar, mayor of Kelleys Island, said the village adopted a transient rental permit tied to life‑safety inspections because heavy guest loads can strain septic systems and risk contamination of Lake Erie.

Multiple speakers cited research and local data. Carmichael referenced studies from the Wharton School and Altus reporting correlations between short‑term rental growth and local rent/price increases. Larry Fletcher presented lodging statistics for his two‑county region (7,200 hotel rooms, 230 B&B rooms, roughly 3,000 campsites and 347 short‑term rental properties representing about 1,761 rooms) and said short‑term rentals generated a meaningful share of lodging taxes in 2024.

Even opponents of the bill said they favor provisions that increase tax remittance and registration. Chris Nichols, a Canton Township trustee, said his township supports registration and platform collection of lodging taxes but opposes eliminating local authority to inspect and regulate properties for life‑safety and neighborhood integrity.

Supporters of local regulation urged the committee to preserve specific enforcement tools — zoning processes, conditional‑use hearings, nuisance abatement and building and fire inspections — that allow residents and local officials to resolve problems without relying on state action.

The committee did not take a vote on SB 104 at the hearing. Senators asked questions about possible middle‑ground approaches, including statewide standards for tax collection combined with retained local zoning authority. Several witnesses said a one‑size‑fits‑all state mandate would not reflect the diversity of Ohio communities.

Proponents of local control asked lawmakers to revise the bill to preserve local authority to determine allowable locations, inspection requirements and enforcement mechanisms while pursuing agreed‑upon state action for tax collection.

Ending: Witnesses said the balance between tourism and neighborhood stability can vary substantially by community and urged senators to protect local home‑rule authority as they consider tax and enforcement provisions in SB 104.