Ohio committee hears broad testimony on short-term rental substitute bill that would limit local bans and cap lodging taxes

The Senate Local Government Committee on March 12 adopted a substitute as its working document for Senate Bill 104 and heard public testimony for and against provisions that would restrict local governments’ ability to ban or heavily regulate short-term rentals and would cap lodging taxes for those rentals at 7.5%.

Supporters, including short-term rental owners and trade groups, told the committee the bill would create consistent statewide rules and protect property owners from what they described as arbitrary local bans. Opponents, including local convention and visitors bureaus, said the substitute limits local control, constrains local revenue and administration, and was distributed to stakeholders too recently for adequate review.

Senate Bill 104, as discussed in committee, would: grandfather existing local regulations in place before the bill’s effective date; allow local governments to suspend operation of a short-term rental for up to 30 days after three violations of the same local requirement within 180 days; replace a $20 licensing fee with a one-time $50 fee and prohibit…