H. B. No. 518 As Introduced

REPRESENTATIVES Schmidt, Cates

A BILL

To amend section 5739.024 of the Revised Code to

authorize the boards of county commissioners of

certain counties to levy an additional excise tax

on lodging.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:

Section 1. That section 5739.024 of the Revised Code be	5
amended to read as follows:	6

Sec. 5739.024. (A)(1) A board of county commissioners may,	7
by resolution adopted by a majority of the members of the board,	8
levy an excise tax not to exceed three per cent on transactions by	9
which lodging by a hotel is or is to be furnished to transient	10
guests. The board shall establish all regulations necessary to	11
provide for the administration and allocation of the tax. The	12
regulations may prescribe the time for payment of the tax, and may	13
provide for the imposition of a penalty or interest, or both, for	14
late payments, provided that the penalty does not exceed ten per	15
cent of the amount of tax due, and the rate at which interest	16
accrues does not exceed the rate per annum prescribed pursuant to	17
section 5703.47 of the Revised Code. Except as provided in	18
divisions (A)(2) ~~and~~, (3), and (4) of this section, the	19
regulations shall provide, after deducting the real and actual	20
costs of administering the tax, for the return to each municipal	21
corporation or township that does not levy an excise tax on such	22
transactions, a uniform percentage of the tax collected in the	23
municipal corporation or in the unincorporated portion of the	24
township from each such transaction, not to exceed thirty-three	25
and one-third per cent. The remainder of the revenue arising from	26
the tax shall be deposited in a separate fund and shall be spent	27
solely to make contributions to the convention and visitors'	28
bureau operating within the county, including a pledge and	29
contribution of any portion of such remainder pursuant to an	30
agreement authorized by section 307.695 of the Revised Code.	31
Except as provided in division (A)(2) or, (3), or (4) of this	32
section, on and after May 10, 1994, a board of county	33
commissioners may not levy an excise tax pursuant to this division	34
in any municipal corporation or township located wholly or partly	35
within the county that has in effect an ordinance or resolution	36
levying an excise tax pursuant to division (B) of this section.	37
The board of a county that has levied a tax under division (C) of	38
this section may, by resolution adopted within ninety days after	39
July 15, 1985, by a majority of the members of the board, amend	40
the resolution levying a tax under this division to provide for a	41
portion of that tax to be pledged and contributed in accordance	42
with an agreement entered into under section 307.695 of the	43
Revised Code. A tax, any revenue from which is pledged pursuant	44
to such an agreement, shall remain in effect at the rate at which	45
it is imposed for the duration of the period for which the revenue	46
therefrom has been so pledged.	47

(2) A board of county commissioners that levies an excise	48
tax under division (A)(1) of this section on June 30, 1997, at a	49
rate of three per cent, and that has pledged revenue from the tax	50
to an agreement entered into under section 307.695 of the Revised	51
Code, may amend the resolution levying that tax to provide for an	52
increase in the rate of the tax up to five per cent on each	53
transaction; to provide that revenue from the increase in the rate	54
shall be spent solely to make contributions to the convention and	55
visitors' bureau operating within the county to be used	56
specifically for promotion, advertising, and marketing of the	57
region in which the county is located; to provide that the rate in	58
excess of the three per cent levied under division (A)(1) of this	59
section shall remain in effect at the rate at which it is imposed	60
for the duration of the period during which any agreement is in	61
effect that was entered into under section 307.695 of the Revised	62
Code by the board of county commissioners levying a tax under	63
division (A)(1) of this section; and to provide that no portion of	64
that revenue need be returned to townships or municipal	65
corporations as would otherwise be required under division (A)(1)	66
of this section.	67

(3) A board of county commissioners that levies a tax under	68
division (A)(1) of this section on March 18, 1999, at a rate of	69
three per cent may, by resolution adopted not later than	70
forty-five days after March 18, 1999, amend the resolution	71
levying the tax to provide for all of the following:	72

(a) That the rate of the tax shall be increased by not more	73
than an additional four per cent on each transaction;	74

(b) That all of the revenue from the increase in rate shall	75
be pledged and contributed to a convention facilities authority	76
established by the board of county commissioners under Chapter	77
351. of the Revised Code on or before November 15, 1998, and used	78
to pay costs of constructing, maintaining, operating, and	79
promoting a facility in the county, including paying bonds, or	80
notes issued in anticipation of bonds, as provided by that	81
chapter;	82

(c) That no portion of the revenue arising from the increase	83
in rate need be returned to municipal corporations or townships as	84
otherwise required under division (A)(1) of this section;	85

(d) That the increase in rate shall not be subject to	86
diminution by initiative or referendum or by law while any bonds,	87
or notes in anticipation of bonds, issued by the authority under	88
Chapter 351. of the Revised Code to which the revenue is pledged	89
remain outstanding in accordance with their terms, unless	90
provision is made by law or by the board of county commissioners	91
for an adequate substitute therefor that is satisfactory to the	92
trustee if a trust agreement secures the bonds.	93

Division (A)(3) of this section does not apply to the board	94
of county commissioners of any county in which a convention center	95
or facility exists or is being constructed on November 15, 1998,	96
or of any county in which a convention facilities authority levies	97
a tax pursuant to section 351.021 of the Revised Code on that	98
date.	99

As used in division (A)(3) of this section, "costs" and	100
"facility" have the same meanings as in section 351.01 of the	101
Revised Code, and "convention center" has the same meaning as in	102
section 307.695 of the Revised Code.	103

(4) A board of county commissioners that levies a tax under	104
division (A)(1) of this section on June 30, 2002, at a rate of	105
three per cent may, by resolution adopted not later than August	106
15, 2002, amend the resolution levying the tax to provide for all	107
of the following:	108

(a) That the rate of the tax shall be increased by not more	109
than an additional four and one-half per cent on each transaction;	110

(b) That all of the revenue from the increase in rate shall	111
be pledged and contributed to a convention facilities authority	112
established by the board of county commissioners under Chapter	113
351. of the Revised Code on or before August 15, 2002, and used to	114
pay costs of constructing, expanding, maintaining, operating, or	115
promoting a convention center in the county, including paying	116
bonds, or notes issued in anticipation of bonds, as provided by	117
that chapter;	118

(c) That no portion of the revenue arising from the increase	119
in rate need be returned to municipal corporations or townships as	120
otherwise required under division (A)(1) of this section;	121

(d) That the increase in rate shall not be subject to	122
diminution by initiative or referendum or by law while any bonds,	123
or notes in anticipation of bonds, issued by the authority under	124
Chapter 351. of the Revised Code to which the revenue is pledged	125
remain outstanding in accordance with their terms, unless	126
provision is made by law or by the board of county commissioners	127
for an adequate substitute therefor that is satisfactory to the	128
trustee if a trust agreement secures the bonds.	129

As used in division (A)(4) of this section, "cost" has the	130
same meaning as in section 351.01 of the Revised Code and	131
"convention center" has the same meaning as in section 307.695 of	132
the Revised Code.	133

(B) The legislative authority of a municipal corporation or	134
the board of trustees of a township that is not wholly or partly	135
located in a county that has in effect a resolution levying an	136
excise tax pursuant to division (A)(1) of this section may by	137
ordinance or resolution levy an excise tax not to exceed three per	138
cent on transactions by which lodging by a hotel is or is to be	139
furnished to transient guests. The legislative authority of the	140
municipal corporation or township shall deposit at least fifty per	141
cent of the revenue from the tax levied pursuant to this division	142
into a separate fund, which shall be spent solely to make	143
contributions to convention and visitors' bureaus operating within	144
the county in which the municipal corporation or township is	145
wholly or partly located, and the balance of such revenue shall be	146
deposited in the general fund. The municipal corporation or	147
township shall establish all regulations necessary to provide for	148
the administration and allocation of the tax. The regulations may	149
prescribe the time for payment of the tax, and may provide for the	150
imposition of a penalty or interest, or both, for late payments,	151
provided that the penalty does not exceed ten per cent of the	152
amount of tax due, and the rate at which interest accrues does not	153
exceed the rate per annum prescribed pursuant to section 5703.47	154
of the Revised Code. The levy of a tax under this division is in	155
addition to any tax imposed on the same transaction by a municipal	156
corporation or a township as authorized by division (C)(1) of	157
section 5739.02 of the Revised Code.	158

(C) For the purpose of making the payments authorized by	159
section 307.695 of the Revised Code to construct and equip a	160
convention center in the county and to cover the costs of	161
administering the tax, a board of county commissioners of a county	162
where a tax imposed under division (A)(1) of this section is in	163
effect may, by resolution adopted within ninety days after July	164
15, 1985, by a majority of the members of the board, levy an	165
additional excise tax not to exceed three per cent on transactions	166
by which lodging by a hotel is or is to be furnished to transient	167
guests. The tax authorized by this division shall be in addition	168
to any tax that is levied pursuant to division (A) of this	169
section, but it shall not apply to transactions subject to a tax	170
levied by a municipal corporation or township pursuant to the	171
authorization granted by division (C)(1) of section 5739.02 of the	172
Revised Code. The board shall establish all regulations necessary	173
to provide for the administration and allocation of the tax. The	174
regulations may prescribe the time for payment of the tax, and may	175
provide for the imposition of a penalty or interest, or both, for	176
late payments, provided that the penalty does not exceed ten per	177
cent of the amount of tax due, and the rate at which interest	178
accrues does not exceed the rate per annum prescribed pursuant to	179
section 5703.47 of the Revised Code. All revenues arising from	180
the tax shall be expended in accordance with section 307.695 of	181
the Revised Code. A tax imposed under this section shall remain	182
in effect at the rate at which it is imposed for the duration of	183
the period for which the revenue therefrom has been pledged	184
pursuant to such section.	185

(D) For the purpose of providing contributions under	186
division (B)(1) of section 307.671 of the Revised Code to enable	187
the acquisition, construction, and equipping of a port authority	188
educational and cultural facility in the county and, to the extent	189
provided for in the cooperative agreement authorized by that	190
section, for the purpose of paying debt service charges on bonds,	191
or notes in anticipation thereof, described in division (B)(1)(b)	192
of that section, a board of county commissioners, by resolution	193
adopted within ninety days after December 22, 1992, by a majority	194
of the members of the board, may levy an additional excise tax not	195
to exceed one and one-half per cent on transactions by which	196
lodging by a hotel is or is to be furnished to transient guests.	197
The excise tax authorized by this division shall be in addition to	198
any tax that is levied pursuant to divisions (A), (B), and (C) of	199
this section, to any excise tax levied pursuant to division (C) of	200
section 5739.02 of the Revised Code, and to any excise tax levied	201
pursuant to section 351.021 of the Revised Code. The board of	202
county commissioners shall establish all regulations necessary to	203
provide for the administration and allocation of the tax that are	204
not inconsistent with this section or section 307.671 of the	205
Revised Code. The regulations may prescribe the time for payment	206
of the tax, and may provide for the imposition of a penalty or	207
interest, or both, for late payments, provided that the penalty	208
does not exceed ten per cent of the amount of tax due, and the	209
rate at which interest accrues does not exceed the rate per annum	210
prescribed pursuant to section 5703.47 of the Revised Code. All	211
revenues arising from the tax shall be expended in accordance with	212
section 307.671 of the Revised Code and division (D) of this	213
section. The levy of a tax imposed under this section may not	214
commence prior to the first day of the month next following the	215
execution of the cooperative agreement authorized by section	216
307.671 of the Revised Code by all parties to that agreement. Such	217
tax shall remain in effect at the rate at which it is imposed for	218
the period of time described in division (C) of section 307.671 of	219
the Revised Code for which the revenue from the tax has been	220
pledged by the county to the corporation pursuant to such section,	221
but, to any extent provided for in the cooperative agreement, for	222
no lesser period than the period of time required for payment of	223
the debt service charges on bonds, or notes in anticipation	224
thereof, described in division (B)(1)(b) of that section.	225

(E) For the purpose of paying the costs of acquiring,	226
constructing, equipping, and improving a municipal educational and	227
cultural facility, including debt service charges on bonds	228
provided for in division (B) of section 307.672 of the Revised	229
Code, and for such additional purposes as are determined by the	230
county in the resolution levying the tax or amendments thereto,	231
including subsequent amendments providing for paying costs of	232
acquiring, constructing, renovating, rehabilitating, equipping,	233
and improving a port authority educational and cultural performing	234
arts facility, as defined in section 307.674 of the Revised Code,	235
including debt service charges on bonds provided for in division	236
(B) of section 307.674 of the Revised Code, the legislative	237
authority of a county, by resolution adopted within ninety days	238
after June 30, 1993, by a majority of the members of the	239
legislative authority, may levy an additional excise tax not to	240
exceed one and one-half per cent on transactions by which lodging	241
by a hotel is or is to be furnished to transient guests. The	242
excise tax authorized by this division shall be in addition to any	243
tax that is levied pursuant to divisions (A), (B), (C), and (D) of	244
this section, to any excise tax levied pursuant to division (C) of	245
section 5739.02 of the Revised Code, and to any excise tax levied	246
pursuant to section 351.021 of the Revised Code. The legislative	247
authority of the county shall establish all regulations necessary	248
to provide for the administration and allocation of the tax. The	249
regulations may prescribe the time for payment of the tax, and may	250
provide for the imposition of a penalty or interest, or both, for	251
late payments, provided that the penalty does not exceed ten per	252
cent of the amount of tax due, and the rate at which interest	253
accrues does not exceed the rate per annum prescribed pursuant to	254
section 5703.47 of the Revised Code. All revenues arising from the	255
tax shall be expended in accordance with section 307.672 of the	256
Revised Code and division (E) of this section. The levy of a tax	257
imposed under this division shall not commence prior to the first	258
day of the month next following the execution of the cooperative	259
agreement authorized by section 307.672 of the Revised Code by all	260
parties to that agreement. Such tax shall remain in effect at the	261
rate at which it is imposed for the period of time determined by	262
the legislative authority of the county, but not to exceed fifteen	263
years.	264

(F) The legislative authority of a county that has levied a	265
tax under division (E) of this section may, by resolution adopted	266
within one hundred eighty days after January 4, 2001, by a	267
majority of the members of the legislative authority, amend the	268
resolution levying a tax under division (E) of this section to	269
provide for the use of the proceeds of that tax, to the extent	270
that it is no longer needed for its original purpose as determined	271
by the parties to a cooperative agreement amendment pursuant to	272
division (D) of section 307.672 of the Revised Code, to pay costs	273
of acquiring, constructing, renovating, rehabilitating, equipping,	274
and improving a port authority educational and cultural performing	275
arts facility, including debt service charges on bonds provided	276
for in division (B) of section 307.674 of the Revised Code, and to	277
pay all obligations under any guaranty agreements, reimbursement	278
agreements, or other credit enhancement agreements described in	279
division (C) of section 307.674 of the Revised Code. The	280
resolution may also provide for the extension of the tax at the	281
same rate for the longer of the period of time determined by the	282
legislative authority of the county, but not to exceed an	283
additional twenty-five years, or the period of time required to	284
pay all debt service charges on bonds provided for in division (B)	285
of section 307.672 of the Revised Code and on port authority	286
revenue bonds provided for in division (B) of section 307.674 of	287
the Revised Code. All revenues arising from the amendment and	288
extension of the tax shall be expended in accordance with section	289
307.674 of the Revised Code and divisions (E) and (F) of this	290
section.	291

(G) For purposes of a tax levied by a county, township, or	292
municipal corporation under this section or division (C) of	293
section 5739.02 of the Revised Code, a board of county	294
commissioners, board of township trustees, or the legislative	295
authority of a municipal corporation may adopt a resolution or	296
ordinance at any time specifying that "hotel," as otherwise	297
defined in section 5739.01 of the Revised Code, includes	298
establishments in which fewer than five rooms are used for the	299
accommodation of guests. The resolution or ordinance may apply to	300
a tax imposed pursuant to this section prior to the adoption of	301
the resolution or ordinance if the resolution or ordinance so	302
states, but the tax shall not apply to transactions by which	303
lodging by such an establishment is provided to transient guests	304
prior to the adoption of the resolution or ordinance.	305

Section 2. That existing section 5739.024 of the Revised Code	306
is hereby repealed.	307