Sub. H. B. No. 518 As Reported by the House State Government Committee

REPRESENTATIVES Schmidt, Cates

A BILL

To amend section 5739.09 of the Revised Code to

authorize the boards of county commissioners of

certain counties to levy an additional excise tax

on lodging and to allow the most populous municipal

corporation in those counties to levy an additional

excise tax on lodging as well.

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

Section 1. That section 5739.09 of the Revised Code be	7
amended to read as follows:	8

Sec. 5739.09. (A)(1) A board of county commissioners may,	9
by resolution adopted by a majority of the members of the board,	10
levy an excise tax not to exceed three per cent on transactions by	11
which lodging by a hotel is or is to be furnished to transient	12
guests. The board shall establish all regulations necessary to	13
provide for the administration and allocation of the tax. The	14
regulations may prescribe the time for payment of the tax, and may	15
provide for the imposition of a penalty or interest, or both, for	16
late payments, provided that the penalty does not exceed ten per	17
cent of the amount of tax due, and the rate at which interest	18
accrues does not exceed the rate per annum prescribed pursuant to	19
section 5703.47 of the Revised Code. Except as provided in	20
divisions (A)(2) ~~and~~, (3), and (4) of this section, the	21
regulations shall provide, after deducting the real and actual	22
costs of administering the tax, for the return to each municipal	23
corporation or township that does not levy an excise tax on ~~such~~	24
the transactions, a uniform percentage of the tax collected in the	25
municipal corporation or in the unincorporated portion of the	26
township from each ~~such~~ transaction, not to exceed thirty-three	27
and one-third per cent. The remainder of the revenue arising from	28
the tax shall be deposited in a separate fund and shall be spent	29
solely to make contributions to the convention and visitors'	30
bureau operating within the county, including a pledge and	31
contribution of any portion of ~~such~~the remainder pursuant to an	32
agreement authorized by section 307.695 of the Revised Code.	33
Except as provided in division (A)(2) or, (3), or (4) of this	34
section, on and after May 10, 1994, a board of county	35
commissioners may not levy an excise tax pursuant to this division	36
in any municipal corporation or township located wholly or partly	37
within the county that has in effect an ordinance or resolution	38
levying an excise tax pursuant to division (B) of this section.	39
The board of a county that has levied a tax under division (C) of	40
this section may, by resolution adopted within ninety days after	41
July 15, 1985, by a majority of the members of the board, amend	42
the resolution levying a tax under this division to provide for a	43
portion of that tax to be pledged and contributed in accordance	44
with an agreement entered into under section 307.695 of the	45
Revised Code. A tax, any revenue from which is pledged pursuant	46
to such an agreement, shall remain in effect at the rate at which	47
it is imposed for the duration of the period for which the revenue	48
~~therefrom~~from the tax has been so pledged.	49

(2) A board of county commissioners that levies an excise	50
tax under division (A)(1) of this section on June 30, 1997, at a	51
rate of three per cent, and that has pledged revenue from the tax	52
to an agreement entered into under section 307.695 of the Revised	53
Code, may amend the resolution levying that tax to provide for an	54
increase in the rate of the tax up to five per cent on each	55
transaction; to provide that revenue from the increase in the rate	56
shall be spent solely to make contributions to the convention and	57
visitors' bureau operating within the county to be used	58
specifically for promotion, advertising, and marketing of the	59
region in which the county is located; to provide that the rate in	60
excess of the three per cent levied under division (A)(1) of this	61
section shall remain in effect at the rate at which it is imposed	62
for the duration of the period during which any agreement is in	63
effect that was entered into under section 307.695 of the Revised	64
Code by the board of county commissioners levying a tax under	65
division (A)(1) of this section; and to provide that no portion of	66
that revenue need be returned to townships or municipal	67
corporations as would otherwise be required under division (A)(1)	68
of this section.	69

(3) A board of county commissioners that levies a tax under	70
division (A)(1) of this section on March 18, 1999, at a rate of	71
three per cent may, by resolution adopted not later than	72
forty-five days after March 18, 1999, amend the resolution	73
levying the tax to provide for all of the following:	74

(a) That the rate of the tax shall be increased by not more	75
than an additional four per cent on each transaction;	76

(b) That all of the revenue from the increase in the rate	77
shall be pledged and contributed to a convention facilities	78
authority established by the board of county commissioners under	79
Chapter 351. of the Revised Code on or before November 15, 1998,	80
and used to pay costs of constructing, maintaining, operating, and	81
promoting a facility in the county, including paying bonds, or	82
notes issued in anticipation of bonds, as provided by that	83
chapter;	84

(c) That no portion of the revenue arising from the increase	85
in rate need be returned to municipal corporations or townships as	86
otherwise required under division (A)(1) of this section;	87

(d) That the increase in rate shall not be subject to	88
diminution by initiative or referendum or by law while any bonds,	89
or notes in anticipation of bonds, issued by the authority under	90
Chapter 351. of the Revised Code to which the revenue is pledged,	91
remain outstanding in accordance with their terms, unless	92
provision is made by law or by the board of county commissioners	93
for an adequate substitute therefor that is satisfactory to the	94
trustee if a trust agreement secures the bonds.	95

Division (A)(3) of this section does not apply to the board	96
of county commissioners of any county in which a convention center	97
or facility exists or is being constructed on November 15, 1998,	98
or of any county in which a convention facilities authority levies	99
a tax pursuant to section 351.021 of the Revised Code on that	100
date.	101

As used in division (A)(3) of this section, "~~costs~~cost" and	102
"facility" have the same meanings as in section 351.01 of the	103
Revised Code, and "convention center" has the same meaning as in	104
section 307.695 of the Revised Code.	105

(4) A board of county commissioners that levies a tax under	106
division (A)(1) of this section on June 30, 2002, at a rate of	107
three per cent may, by resolution adopted not later than September	108
30, 2002, amend the resolution levying the tax to provide for all	109
of the following:	110

(a) That the rate of the tax shall be increased by not more	111
than an additional three and one-half per cent on each	112
transaction;	113

(b) That all of the revenue from the increase in rate shall	114
be pledged and contributed to a convention facilities authority	115
established by the board of county commissioners under Chapter	116
351. of the Revised Code on or before May 15, 2002, and be used to	117
pay costs of constructing, expanding, maintaining, operating, or	118
promoting a convention center in the county, including paying	119
bonds, or notes issued in anticipation of bonds, as provided by	120
that chapter;	121

(c) That no portion of the revenue arising from the increase	122
in rate need be returned to municipal corporations or townships as	123
otherwise required under division (A)(1) of this section;	124

(d) That the increase in rate shall not be subject to	125
diminution by initiative or referendum or by law while any bonds,	126
or notes in anticipation of bonds, issued by the authority under	127
Chapter 351. of the Revised Code to which the revenue is pledged,	128
remain outstanding in accordance with their terms, unless	129
provision is made by law or by the board of county commissioners	130
for an adequate substitute therefor that is satisfactory to the	131
trustee if a trust agreement secures the bonds.	132

As used in division (A)(4) of this section, "cost" has the	133
same meaning as in section 351.01 of the Revised Code, and	134
"convention center" has the same meaning as in section 307.695 of	135
the Revised Code.	136

(B)(1) The legislative authority of a municipal corporation	137
or the board of trustees of a township that is not wholly or	138
partly located in a county that has in effect a resolution levying	139
an excise tax pursuant to division (A)(1) of this section may, by	140
ordinance or resolution, levy an excise tax not to exceed three	141
per cent on transactions by which lodging by a hotel is or is to	142
be furnished to transient guests. The legislative authority of	143
the municipal corporation or the board of trustees of the township	144
shall deposit at least fifty per cent of the revenue from the tax	145
levied pursuant to this division into a separate fund, which shall	146
be spent solely to make contributions to convention and visitors'	147
bureaus operating within the county in which the municipal	148
corporation or township is wholly or partly located, and the	149
balance of ~~such~~that revenue shall be deposited in the general	150
fund. The municipal corporation or township shall establish all	151
regulations necessary to provide for the administration and	152
allocation of the tax. The regulations may prescribe the time for	153
payment of the tax, and may provide for the imposition of a	154
penalty or interest, or both, for late payments, provided that the	155
penalty does not exceed ten per cent of the amount of tax due, and	156
the rate at which interest accrues does not exceed the rate per	157
annum prescribed pursuant to section 5703.47 of the Revised Code.	158
The levy of a tax under this division is in addition to any tax	159
imposed on the same transaction by a municipal corporation or a	160
township as authorized by division (A) of section 5739.08 of the	161
Revised Code.	162

(2) The legislative authority of the most populous municipal	163
corporation located wholly or partly in a county in which the	164
board of county commissioners has levied a tax under division	165
(A)(4) of this section may amend, on or before September 30, 2002,	166
that municipal corporation's ordinance or resolution that levies	167
an excise tax on transactions by which lodging by a hotel is or is	168
to be furnished to transient guests, to provide for all of the	169
following:	170

(a) That the rate of the tax shall be increased by not more	171
than an additional one per cent on each transaction;	172

(b) That all of the revenue from the increase in rate shall	173
be pledged and contributed to a convention facilities authority	174
established by the board of county commissioners under Chapter	175
351. of the Revised Code on or before May 15, 2002, and be used to	176
pay costs of constructing, expanding, maintaining, operating, or	177
promoting a convention center in the county, including paying	178
bonds, or notes issued in anticipation of bonds, as provided by	179
that chapter;	180

(c) That the increase in rate shall not be subject to	181
diminution by initiative or referendum or by law while any bonds,	182
or notes in anticipation of bonds, issued by the authority under	183
Chapter 351. of the Revised Code to which the revenue is pledged,	184
remain outstanding in accordance with their terms, unless	185
provision is made by law, by the board of county commissioners, or	186
by the legislative authority, for an adequate substitute therefor	187
that is satisfactory to the trustee if a trust agreement secures	188
the bonds.	189

As used in division (B)(2) of this section, "cost" has the	190
same meaning as in section 351.01 of the Revised Code, and	191
"convention center" has the same meaning as in section 307.695 of	192
the Revised Code.	193

(C) For the purpose of making the payments authorized by	194
section 307.695 of the Revised Code to construct and equip a	195
convention center in the county and to cover the costs of	196
administering the tax, a board of county commissioners of a county	197
where a tax imposed under division (A)(1) of this section is in	198
effect may, by resolution adopted within ninety days after July	199
15, 1985, by a majority of the members of the board, levy an	200
additional excise tax not to exceed three per cent on transactions	201
by which lodging by a hotel is or is to be furnished to transient	202
guests. The tax authorized by this division shall be in addition	203
to any tax that is levied pursuant to division (A) of this	204
section, but it shall not apply to transactions subject to a tax	205
levied by a municipal corporation or township pursuant to the	206
authorization granted by division (A) of section 5739.08 of the	207
Revised Code. The board shall establish all regulations necessary	208
to provide for the administration and allocation of the tax. The	209
regulations may prescribe the time for payment of the tax, and may	210
provide for the imposition of a penalty or interest, or both, for	211
late payments, provided that the penalty does not exceed ten per	212
cent of the amount of tax due, and the rate at which interest	213
accrues does not exceed the rate per annum prescribed pursuant to	214
section 5703.47 of the Revised Code. All revenues arising from the	215
tax shall be expended in accordance with section 307.695 of the	216
Revised Code. A tax imposed under this ~~section~~division shall	217
remain in effect at the rate at which it is imposed for the	218
duration of the period for which the revenue ~~therefrom~~from the	219
tax has been pledged pursuant to ~~such~~that section.	220

(D) For the purpose of providing contributions under	221
division (B)(1) of section 307.671 of the Revised Code to enable	222
the acquisition, construction, and equipping of a port authority	223
educational and cultural facility in the county and, to the extent	224
provided for in the cooperative agreement authorized by that	225
section, for the purpose of paying debt service charges on bonds,	226
or notes in anticipation ~~thereof~~of bonds, described in division	227
(B)(1)(b) of that section, a board of county commissioners, by	228
resolution adopted within ninety days after December 22, 1992, by	229
a majority of the members of the board, may levy an additional	230
excise tax not to exceed one and one-half per cent on transactions	231
by which lodging by a hotel is or is to be furnished to transient	232
guests. The excise tax authorized by this division shall be in	233
addition to any tax that is levied pursuant to divisions (A), (B),	234
and (C) of this section, to any excise tax levied pursuant to	235
section 5739.08 of the Revised Code, and to any excise tax levied	236
pursuant to section 351.021 of the Revised Code. The board of	237
county commissioners shall establish all regulations necessary to	238
provide for the administration and allocation of the tax that are	239
not inconsistent with this section or section 307.671 of the	240
Revised Code. The regulations may prescribe the time for payment	241
of the tax, and may provide for the imposition of a penalty or	242
interest, or both, for late payments, provided that the penalty	243
does not exceed ten per cent of the amount of tax due, and the	244
rate at which interest accrues does not exceed the rate per annum	245
prescribed pursuant to section 5703.47 of the Revised Code. All	246
revenues arising from the tax shall be expended in accordance with	247
section 307.671 of the Revised Code and division (D) of this	248
section. The levy of a tax imposed under this ~~section~~division	249
may not commence prior to the first day of the month next	250
following the execution of the cooperative agreement authorized by	251
section 307.671 of the Revised Code by all parties to that	252
agreement. ~~Such~~The tax shall remain in effect at the rate at	253
which it is imposed for the period of time described in division	254
(C) of section 307.671 of the Revised Code for which the revenue	255
from the tax has been pledged by the county to the corporation	256
pursuant to ~~such~~that section, but, to any extent provided for in	257
the cooperative agreement, for no lesser period than the period of	258
time required for payment of the debt service charges on bonds, or	259
notes in anticipation ~~thereof~~of bonds, described in division	260
(B)(1)(b) of that section.	261

(E) For the purpose of paying the costs of acquiring,	262
constructing, equipping, and improving a municipal educational and	263
cultural facility, including debt service charges on bonds	264
provided for in division (B) of section 307.672 of the Revised	265
Code, and for ~~such~~any additional purposes ~~as are~~ determined by	266
the county in the resolution levying the tax or amendments ~~thereto~~	267
to the resolution, including subsequent amendments providing for	268
paying costs of acquiring, constructing, renovating,	269
rehabilitating, equipping, and improving a port authority	270
educational and cultural performing arts facility, as defined in	271
section 307.674 of the Revised Code, and including debt service	272
charges on bonds provided for in division (B) of section 307.674	273
of the Revised Code, the legislative authority of a county, by	274
resolution adopted within ninety days after June 30, 1993, by a	275
majority of the members of the legislative authority, may levy an	276
additional excise tax not to exceed one and one-half per cent on	277
transactions by which lodging by a hotel is or is to be furnished	278
to transient guests. The excise tax authorized by this division	279
shall be in addition to any tax that is levied pursuant to	280
divisions (A), (B), (C), and (D) of this section, to any excise	281
tax levied pursuant to section 5739.08 of the Revised Code, and	282
to any excise tax levied pursuant to section 351.021 of the	283
Revised Code. The legislative authority of the county shall	284
establish all regulations necessary to provide for the	285
administration and allocation of the tax. The regulations may	286
prescribe the time for payment of the tax, and may provide for the	287
imposition of a penalty or interest, or both, for late payments,	288
provided that the penalty does not exceed ten per cent of the	289
amount of tax due, and the rate at which interest accrues does not	290
exceed the rate per annum prescribed pursuant to section 5703.47	291
of the Revised Code. All revenues arising from the tax shall be	292
expended in accordance with section 307.672 of the Revised Code	293
and this division ~~(E) of this section~~. The levy of a tax imposed	294
under this division shall not commence prior to the first day of	295
the month next following the execution of the cooperative	296
agreement authorized by section 307.672 of the Revised Code by all	297
parties to that agreement. ~~Such~~The tax shall remain in effect at	298
the rate at which it is imposed for the period of time determined	299
by the legislative authority of the county, but not to exceed	300
fifteen years.	301

(F) The legislative authority of a county that has levied a	302
tax under division (E) of this section may, by resolution adopted	303
within one hundred eighty days after January 4, 2001, by a	304
majority of the members of the legislative authority, amend the	305
resolution levying a tax under that division ~~(E) of this section~~	306
to provide for the use of the proceeds of that tax, to the extent	307
that it is no longer needed for its original purpose as determined	308
by the parties to a cooperative agreement amendment pursuant to	309
division (D) of section 307.672 of the Revised Code, to pay costs	310
of acquiring, constructing, renovating, rehabilitating, equipping,	311
and improving a port authority educational and cultural performing	312
arts facility, including debt service charges on bonds provided	313
for in division (B) of section 307.674 of the Revised Code, and to	314
pay all obligations under any guaranty agreements, reimbursement	315
agreements, or other credit enhancement agreements described in	316
division (C) of section 307.674 of the Revised Code. The	317
resolution may also provide for the extension of the tax at the	318
same rate for the longer of the period of time determined by the	319
legislative authority of the county, but not to exceed an	320
additional twenty-five years, or the period of time required to	321
pay all debt service charges on bonds provided for in division (B)	322
of section 307.672 of the Revised Code and on port authority	323
revenue bonds provided for in division (B) of section 307.674 of	324
the Revised Code. All revenues arising from the amendment and	325
extension of the tax shall be expended in accordance with section	326
307.674 of the Revised Code, this division, and ~~divisions~~division	327
(E) ~~and (F)~~ of this section.	328

(G) For purposes of a tax levied by a county, township, or	329
municipal corporation under this section or section 5739.08 of	330
the Revised Code, a board of county commissioners, board of	331
township trustees, or the legislative authority of a municipal	332
corporation may adopt a resolution or ordinance at any time	333
specifying that "hotel," as otherwise defined in section 5739.01	334
of the Revised Code, includes establishments in which fewer than	335
five rooms are used for the accommodation of guests. The	336
resolution or ordinance may apply to a tax imposed pursuant to	337
this section prior to the adoption of the resolution or ordinance	338
if the resolution or ordinance so states, but the tax shall not	339
apply to transactions by which lodging by such an establishment is	340
provided to transient guests prior to the adoption of the	341
resolution or ordinance.	342

Section 2. That existing section 5739.09 of the Revised Code	343
is hereby repealed.	344