Ohio tourism, hotel and local officials back bill to make short‑term rentals collect lodging and sales taxes

Supporters of House Bill 161 told the House Development Committee the legislation would require short‑term rentals to collect and remit lodging and sales taxes at local rates and that doing so would create parity with hotels and help fund tourism promotion and public services.

"House Bill 161 would establish that short term rentals ... are required to collect and remit lodging and sales taxes," said Andrew Herff of the Ohio Association of Convention and Visitors Bureaus. Herff and representatives from local CVBs and tourism organizations said the bill does not change how lodging tax revenue is distributed and does not intend to preempt local regulation of short‑term rentals.

County and regional witnesses provided examples and estimates. A Shores and Islands witness cited a $3 billion regional tourism economy and noted that many short‑term rentals already collect lodging tax in their counties. Karen Raymore of Hocking Hills said Hocking County has more than 1,600 short‑term rentals and estimated a conservative $500,000 in annual sales tax revenue is currently uncollected. Jeff Blom of Clermont County presented a 2024 short‑term rental booking estimate of about $3.1 million and said applying existing sales and lodging tax rates would have generated approximately $222,750 in sales tax and $231,000 in lodging tax for the county.

Joe Savaris of the Ohio Hotel and Lodging Association argued the bill advances clarity and enforceability. "Tax parity matters because hotel and lodging businesses already pay their fair share," he said, and urged mechanisms for collection and remittance, including platform collection, to ease compliance.

Members raised enforcement, housing and local control questions. Representative Demetriou asked whether lodging taxes were intended to benefit visitor bureaus or to offset community impacts; witnesses answered both. Representative Dean pressed whether the change amounts to a "new tax." Witnesses responded that the taxes already exist for transient lodging and the bill extends existing obligations to short‑term rentals rather than creating new rates.

The Ohio Township Association asked for an amendment to allow township rental registration so local officials can identify short‑term rentals for enforcement and public safety planning. Several members also raised concerns about housing supply and local bans in some jurisdictions; witnesses said those are separate issues that merit further discussion but should not prevent addressing tax collection.

The committee recorded a range of proponent testimony and noted written testimony available on members' devices; no formal vote or amendment was recorded at the hearing.