Morrow County adopts updated lodging tax rules, directs 75% of proceeds to visitors bureau

The Morrow County Board of Commissioners voted to adopt updated lodging-bed tax regulations that take effect July 1, 2024, and will be enforced beginning Oct. 1. The rules reduce the number of taxable rooms from five to two and change how local collections are distributed, the board’s presenter said.

Unidentified Speaker 3, identified in the transcript as the meeting presenter, told commissioners the revisions stem from recommendations by the county economic development office and review by the county auditor and other staff. “The major ones was, going from 5 rooms taxable down to 2,” the presenter said, describing the primary policy change.

Under the adopted rules, 75% of lodging-tax collections will be distributed to the county visitors bureau/chamber to fund programming aimed at boosting tourism and local sales, while 25% will remain with the county to cover administrative costs. The presenter said about $60,000 has already been collected under the tax and would be disbursed under the new allocation.

The presenter also described operational changes: quarterly local inspections to verify business compliance, clearer assignment of collection and compliance roles to county staff, and a clarification that nonprofit organizations using their facilities for purely nonprofit activities remain exempt. However, if a nonprofit rents space to a for-profit group (for example, a corporate retreat), the end user would be charged the 3% lodging tax applicable under county rules.

As part of implementing the new rule, the presenter said staff recommended appointing Grace Byler as the county’s designee to the visitors bureau; the presenter indicated they would present a formal appointment to the board momentarily. The presenter also thanked staff member Angela for several months of work preparing the regulation.

The board moved, seconded and approved the regulation on voice/roll call. The regulation’s stated effective date is 07/01/2024 and enforcement begins Oct. 1.

The board did not detail a precise timeline for the first disbursement of the previously collected $60,000 beyond saying it would be ‘‘quickly dispersed’’ under the new allocation formula. Commissioners also directed staff to manage outreach to local businesses about compliance and collection procedures.

The county did not reference a specific ordinance number in the transcript; the action was recorded as adoption of updated Morrow County lodging-bed tax regulations.