The bill amends various sections of the Revised Code to extend sales and use taxes, as well as local lodging taxes, to short-term rentals. It mandates that short-term rental platforms collect these taxes on behalf of the state and updates the definitions of "transaction" and "hotel" to include "short-term rental property." Additionally, it allows convention facilities authorities and lake facilities authorities to levy excise taxes on short-term rentals, ensuring that these taxes do not exceed existing hotel tax rates. The revenue generated from these taxes is designated for authorized costs, including the operation and maintenance of facilities, thereby creating a more equitable tax structure for short-term rentals in Ohio.

Furthermore, the bill introduces new definitions related to short-term rental properties and establishes that the operator of a short-term rental platform is considered the vendor for all transactions involving lodging. It allows municipal corporations and townships to levy an excise tax of up to three percent on lodging transactions, with at least fifty percent of the revenue allocated to convention and visitors' bureaus. The bill also clarifies the authority of local governments to amend tax ordinances for economic development and tourism purposes, while specifying that revenue from tax increases must be used for constructing and maintaining related facilities. Overall, the legislation aims to enhance local tourism funding and regulate short-term rental operations effectively.

Statutes affected:
As Introduced: 351.01, 351.021, 353.06, 5739.01, 5739.08, 5739.09, 5739.091, 5741.01