Repeal the authorization of a special county lodging tax

As Introduced

136th
General Assembly

Regular
Session
S. B. No. 43

2025-2026

Senators O'Brien, Lang

A
BILL

To
amend section 5739.09 of the Revised Code
to
repeal the authorization of a special county lodging tax.

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

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

Sec.
5739.09.
(A)(1)
A board of county commissioners may, by resolution adopted by a
majority of the members of the board, levy an excise tax not to
exceed three per cent on transactions by which lodging by a hotel is
or is to be furnished to transient guests. The board shall establish
all regulations necessary to provide for the administration and
allocation of the tax. The regulations may prescribe the time for
payment of the tax, and may provide for the imposition of a penalty
or interest, or both, for late payments, provided that the penalty
does not exceed ten per cent of the amount of tax due, and the rate
at which interest accrues does not exceed the rate per annum
prescribed pursuant to section 5703.47 of the Revised Code. Except as
otherwise provided in this section, the regulations shall provide,
after deducting the real and actual costs of administering the tax,
for the return to each municipal corporation or township that does
not levy an excise tax on the transactions, a uniform percentage of
the tax collected in the municipal corporation or in the
unincorporated portion of the township from each transaction, not to
exceed thirty-three and one-third per cent. Except as provided in
this section, the remainder of the revenue arising from the tax shall
be deposited in a separate fund and shall be spent either (a) to make
contributions to the convention and visitors' bureau operating within
the county, including a pledge and contribution of any portion of the
remainder pursuant to an agreement authorized by section 307.678 or
307.695 of the Revised Code or (b) to pay, if authorized in the
regulations, for public safety services in a resort area designated
under section 5739.101 of the Revised Code.

(2)
If the board of county commissioners of an eligible county as defined
in section 307.678 or 307.695 of the Revised Code adopts a resolution
amending a resolution levying a tax under division (A) of this
section to provide that revenue from the tax shall be used by the
board as described in either division (D) of section 307.678 or
division (H) of section 307.695 of the Revised Code, the remainder of
the revenue shall be used as described in the resolution making that
amendment.

(3)
Except as provided in division (B), (C), (D), (E), (F), (G), (H),
(I), (J), (K), or (Q) of this section, on and after May 10, 1994, a
board of county commissioners may not levy an excise tax pursuant to
division (A) of this section in any municipal corporation or township
located wholly or partly within the county that has in effect an
ordinance or resolution levying an excise tax pursuant to division
(B) of section 5739.08 of the Revised Code.

(4)
The board of a county that has levied a tax under division (M) of
this section may, by resolution adopted within ninety days after July
15, 1985, by a majority of the members of the board, amend the
resolution levying a tax under division (A) of this section to
provide for a portion of that tax to be pledged and contributed in
accordance with an agreement entered into under section 307.695 of
the Revised Code. A tax, any revenue from which is pledged pursuant
to such an agreement, shall remain in effect at the rate at which it
is imposed for the duration of the period for which the revenue from
the tax has been so pledged.

(5)
The board of county commissioners of an eligible county as defined in
section 307.695 of the Revised Code may, by resolution adopted by a
majority of the members of the board, amend a resolution levying a
tax under division (A) of this section to provide that the revenue
from the tax shall be used by the board as described in division (H)
of section 307.695 of the Revised Code, in which case the tax shall
remain in effect at the rate at which it was imposed for the duration
of any agreement entered into by the board under section 307.695 of
the Revised Code, the duration during which any securities issued by
the board under that section are outstanding, or the duration of the
period during which the board owns a project as defined in section
307.695 of the Revised Code, whichever duration is longest.

(6)
The board of county commissioners of an eligible county as defined in
section 307.678 of the Revised Code may, by resolution, amend a
resolution levying a tax under division (A) of this section to
provide that revenue from the tax, not to exceed five hundred
thousand dollars each year, may be used as described in division (E)
of section 307.678 of the Revised Code.

(7)
Notwithstanding division (A) of this section, the board of county
commissioners of a county described in division (H)(1) of this
section may, by resolution, amend a resolution levying a tax under
division (A) of this section to provide that all or a portion of the
revenue from the tax, including any revenue otherwise required to be
returned to townships or municipal corporations under that division,
may be used or pledged for the payment of debt service on securities
issued to pay the costs of constructing, operating, and maintaining
sports facilities described in division (H)(2) of this section.

(8)
The board of county commissioners of a county described in division
(I) of this section may, by resolution, amend a resolution levying a
tax under division (A) of this section to provide that all or a
portion of the revenue from the tax may be used for the purposes
described in section 307.679 of the Revised Code.

(B)
A board of county commissioners that levies an excise tax under
division (A) of this section on June 30, 1997, at a rate of three per
cent, and that has pledged revenue from the tax to an agreement
entered into under section 307.695 of the Revised Code or, in the
case of the board of county commissioners of an eligible county as
defined in section 307.695 of the Revised Code, has amended a
resolution levying a tax under division (M) of this section to
provide that proceeds from the tax shall be used by the board as
described in division (H) of section 307.695 of the Revised Code,
may, at any time by a resolution adopted by a majority of the members
of the board, amend the resolution levying a tax under division (A)
of this section to provide for an increase in the rate of that tax up
to seven per cent on each transaction; to provide that revenue from
the increase in the rate shall be used as described in division (H)
of section 307.695 of the Revised Code or be spent solely to make
contributions to the convention and visitors' bureau operating within
the county to be used specifically for promotion, advertising, and
marketing of the region in which the county is located; and to
provide that the rate in excess of the three per cent levied under
division (A) of this section shall remain in effect at the rate at
which it is imposed for the duration of the period during which any
agreement is in effect that was entered into under section 307.695 of
the Revised Code by the board of county commissioners levying a tax
under division (A) of this section, the duration of the period during
which any securities issued by the board under division (I) of
section 307.695 of the Revised Code are outstanding, or the duration
of the period during which the board owns a project as defined in
section 307.695 of the Revised Code, whichever duration is longest.
The amendment also shall provide that no portion of that revenue need
be returned to townships or municipal corporations as would otherwise
be required under division (A) of this section.

(C)(1)
As used in division (C) of this section, "cost" and
"facility" have the same meanings as in section 351.01 of
the Revised Code, and "convention center" has the same
meaning as in section 307.695 of the Revised Code.

(2)
A board of county commissioners that levies a tax under division (A)
of this section on March 18, 1999, at a rate of three per cent may,
by resolution adopted not later than forty-five days after March 18,
1999, amend the resolution levying the tax to provide for all of the
following:

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

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

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

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

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

(D)(1)
As used in division (D) of this section, "cost" has the
same meaning as in section 351.01 of the Revised Code, and
"convention center" has the same meaning as in section
307.695 of the Revised Code.

(2)
A board of county commissioners that levies a tax under division (A)
of this section on June 30, 2002, at a rate of three per cent may, by
resolution adopted not later than September 30, 2002, amend the
resolution levying the tax to provide for all of the following:

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

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

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

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

(3)
Any board of county commissioners that, pursuant to division (D)(2)
of this section, has amended a resolution levying the tax authorized
by division (A) of this section may further amend the resolution to
provide that the revenue referred to in division (D)(2)(b) of this
section shall be pledged and contributed both to a convention
facilities authority to pay the costs of constructing, expanding,
maintaining, or operating one or more convention centers in the
county, including paying bonds, or notes issued in anticipation of
bonds, as provided in Chapter 351. of the Revised Code, and to a
convention and visitors' bureau to pay the costs of promoting one or
more convention centers in the county.

(4)
A county having a population of seven hundred thousand or less may
not levy the increased rate described in division (D)(2) of this
section on or after the first day of the first month beginning after
the effective date of this amendment.

(E)(1)
As used in division (E) of this section:

(a)
"Port authority" means a port authority created under
Chapter 4582. of the Revised Code.

(b)
"Port authority military-use facility" means port authority
facilities on which or adjacent to which is located an installation
of the armed forces of the United States, a reserve component
thereof, or the national guard and at least part of which is made
available for use, for consideration, by the armed forces of the
United States, a reserve component thereof, or the national guard.

(2)
For the purpose of contributing revenue to pay operating expenses of
a port authority that operates a port authority military-use
facility, the board of county commissioners of a county that created,
participated in the creation of, or has joined such a port authority
may do one or both of the following:

(a)
Amend a resolution previously adopted under division (A) of this
section to designate some or all of the revenue from the tax levied
under the resolution to be used for that purpose, notwithstanding
that division;

(b)
Amend a resolution previously adopted under division (A) of this
section to increase the rate of the tax by not more than an
additional two per cent and use the revenue from the increase
exclusively for that purpose.

(3)
If a board of county commissioners amends a resolution to increase
the rate of a tax as authorized in division (E)(2)(b) of this
section, the board also may amend the resolution to specify that the
increase in rate of the tax does not apply to "hotels," as
otherwise defined in section 5739.01 of the Revised Code, having
fewer rooms used for the accommodation of guests than a number of
rooms specified by the board.

(F)(1)
A board of county commissioners of a county organized under a county
charter adopted pursuant to Article X, Section 3, Ohio Constitution,
and that levies an excise tax under division (A) of this section at a
rate of three per cent and levies an additional excise tax under
division (O) of this section at a rate of one and one-half per cent
may, by resolution adopted not later than January 1, 2008, by a
majority of the members of the board, amend the resolution levying a
tax under division (A) of this section to provide for an increase in
the rate of that tax by not more than an additional one per cent on
transactions by which lodging by a hotel is or is to be furnished to
transient guests. Notwithstanding divisions (A) and (O) of this
section, the resolution shall provide that all of the revenue from
the increase in rate, after deducting the real and actual costs of
administering the tax, shall be used to pay the costs of improving,
expanding, equipping, financing, or operating a convention center by
a convention and visitors' bureau in the county.

(2)
The increase in rate shall remain in effect for the period specified
in the resolution, not to exceed ten years, and may be extended for
an additional period of time not to exceed ten years thereafter by a
resolution adopted by a majority of the members of the board.

(3)
The increase in rate shall be subject to the regulations adopted
under division (A) of this section, except that the resolution may
provide that no portion of the revenue from the increase in the rate
shall be returned to townships or municipal corporations as would
otherwise be required under that division.

(G)(1)
Division (G) of this section applies only to a county with a
population greater than sixty-five thousand and less than seventy
thousand according to the most recent federal decennial census and in
which, on December 31, 2006, an excise tax is levied under division
(A) of this section at a rate not less than and not greater than
three per cent, and in which the most recent increase in the rate of
that tax was enacted or took effect in November 1984.

(2)
The board of county commissioners of a county to which division (G)
of this section applies, by resolution adopted by a majority of the
members of the board, may increase the rate of the tax by not more
than one per cent on transactions by which lodging by a hotel is or
is to be furnished to transient guests. The increase in rate shall be
for the purpose of paying expenses deemed necessary by the convention
and visitors' bureau operating in the county to promote travel and
tourism.

(3)
The increase in rate shall remain in effect for the period specified
in the resolution, not to exceed twenty years, provided that the
increase in rate may not continue beyond the time when the purpose
for which the increase is levied ceases to exist. If revenue from the
increase in rate is pledged to the payment of debt charges on
securities, the increase in rate is not subject to diminution by
initiative or referendum or by law for so long as the securities are
outstanding, unless provision is made by law or by the board of
county commissioners for an adequate substitute for that revenue that
is satisfactory to the trustee if a trust agreement secures payment
of the debt charges.

(4)
The increase in rate shall be subject to the regulations adopted
under division (A) of this section, except that the resolution may
provide that no portion of the revenue from the increase in the rate
shall be returned to townships or municipal corporations as would
otherwise be required under division (A) of this section.

(5)
A resolution adopted under division (G) of this section is subject to
referendum under sections 305.31 to 305.99 of the Revised Code.

(H)(1)
Division (H) of this section applies only to a county satisfying all
of the following:

(a)
The population of the county is greater than one hundred seventy-five
thousand and less than two hundred twenty-five thousand according to
the most recent federal decennial census.

(b)
An amusement park with an average yearly attendance in excess of two
million guests is located in the county.

(c)
On December 31, 2014, an excise tax was levied in the county under
division (A) of this section at a rate of three per cent.

(2)
The board of county commissioners of a county to which division (H)
of this section applies, by resolution adopted by a majority of the
members of the board, may increase the rate of the tax by not more
than one per cent on transactions by which lodging by a hotel is or
is to be furnished to transient guests. The increase in rate shall be
used to pay the costs of constructing and maintaining facilities
owned by the county or by a port authority created under Chapter
4582. of the Revised Code, and designed to host sporting events and
expenses deemed necessary by the convention and visitors' bureau
operating in the county to promote travel and tourism with reference
to the sports facilities, and to pay or pledge to the payment of debt
service on securities issued to pay the costs of constructing,
operating, and maintaining the sports facilities.

(3)
The increase in rate shall remain in effect for the period specified
in the resolution. If revenue from the increase in rate is pledged to
the payment of debt charges on securities, the increase in rate is
not subject to diminution by initiative or referendum or by law for
so long as the securities are outstanding, unless provision is made
by law or by the board of county commissioners for an adequate
substitute for that revenue that is satisfactory to the trustee if a
trust agreement secures payment of the debt charges.

(4)
The increase in rate shall be subject to the regulations adopted
under division (A) of this section, except that the resolution may
provide that no portion of the revenue from the increase in the rate
shall be returned to townships or municipal corporations as would
otherwise be required under division (A) of this section.

(I)(1)
The board of county commissioners of a county with a population
greater than seventy-five thousand and less than seventy-eight
thousand, by resolution adopted by a majority of the members of the
board not later than October 15, 2015, may increase the rate of the
tax by not more than one per cent on transactions by which lodging by
a hotel is or is to be furnished to transient guests. The increase in
rate shall be for the purposes described in section 307.679 of the
Revised Code or for the promotion of travel and tourism in the
county, including travel and tourism to sports facilities.

(2)
The increase in rate shall remain in effect for the period specified
in the resolution and as necessary to fulfill the county's
obligations under a cooperative agreement entered into under section
307.679 of the Revised Code. If the resolution is adopted by the
board before September 29, 2015, but after that enactment becomes
law, the increase in rate shall become effective beginning on
September 29, 2015. If revenue from the increase in rate is pledged
to the payment of debt charges on securities, or to substitute for
other revenues pledged to the payment of such debt, the increase in
rate is not subject to diminution by initiative or referendum or by
law for so long as the securities are outstanding, unless provision
is made by law or by the board of county commissioners for an
adequate substitute for that revenue that is satisfactory to the
trustee if a trust agreement secures payment of the debt charges.

(3)
The increase in rate shall be subject to the regulations adopted
under division (A) of this section, except that no portion of the
revenue from the increase in the rate shall be returned to townships
or municipal corporations as would otherwise be required under
division (A) of this section.

(J)(1)
Division (J) of this section applies only to counties satisfying
either of the following:

(a)
A county that, on July 1, 2015, does not levy an excise tax under
division (A) of this section and that has a population of at least
thirty-nine thousand but not more than forty thousand according to
the 2010 federal decennial census;

(b)
A county that, on July 1, 2015, levies an excise tax under division
(A) of this section at a rate of three per cent and that has a
population of at least seventy-one thousand but not more than
seventy-five thousand according to 2010 federal decennial census.

(2)
The board of county commissioners of a county to which division (J)
of this section applies, by resolution adopted by a majority of the
members of the board, may levy an excise tax at a rate not to exceed
three per cent on transactions by which lodging by a hotel is or is
to be furnished to transient guests for the purpose of acquiring,
constructing, equipping, or repairing permanent improvements, as
defined in section 133.01 of the Revised Code.

(3)
If the board does not levy a tax under division (A) of this section,
the board shall establish regulations necessary to provide for the
administration of the tax, which may prescribe the time for payment
of the tax and the imposition of penalty or interest subject to the
limitations on penalty and interest provided in division (A) of this
section. No portion of the revenue shall be returned to townships or
municipal corporations in the county unless otherwise provided by
resolution of the board.

(4)
The tax shall apply throughout the territory of the county, including
in any township or municipal corporation levying an excise tax under
division (A) or (B) of section 5739.08 of the Revised Code. The levy
of the tax is subject to referendum as provided under section 305.31
of the Revised Code.

(5)
The tax shall remain in effect for the period specified in the
resolution. If revenue from the increase in rate is pledged to the
payment of debt charges on securities, the increase in rate is not
subject to diminution by initiative or referendum or by law for so
long as the securities are outstanding unless provision is made by
law or by the board for an adequate substitute for that revenue that
is satisfactory to the trustee if a trust agreement secures payment
of the debt charges.

(K)(1)
The board of county commissioners of an eligible county, as defined
in section 307.678 of the Revised Code, that levies an excise tax
under division (A) of this section on July 1, 2017, at a rate of
three per cent may, by resolution adopted by a majority of the
members of the board, amend the resolution levying the tax to
increase the rate of the tax by not more than an additional three per
cent on each transaction.

(2)
No portion of the revenue shall be returned to townships or municipal
corporations in the county unless otherwise provided by resolution of
the board. Otherwise, the revenue from the increase in the rate shall
be distributed and used in the same manner described under division
(A) of this section or distributed or used to provide credit
enhancement facilities as authorized under section 307.678 of the
Revised Code.

(3)
The increase in rate shall remain in effect for the period specified
in the resolution. If revenue from the increase in rate is pledged to
the payment of debt charges on securities, the increase in rate is
not subject to diminution by initiative or referendum or by law for
so long as the securities are outstanding unless provision is made by
law or by the board for an adequate substitute for that revenue that
is satisfactory to the trustee if a trust agreement secures payment
of the debt charges.

(L)(1)
As used in division (L) of this section:

(a)
"Eligible county" means a county that has a population
greater than one hundred ninety thousand and less than two hundred
thousand according to the 2010 federal decennial census and that
levies an excise tax under division (A) of this section at a rate of
three per cent.

(b)
"Professional sports facility" means a sports facility that
is intended to house major or minor league professional athletic
teams, including a stadium, together with all parking facilities,
walkways, and other auxiliary facilities, real and personal property,
property rights, easements, and interests that may be appropriate
for, or used in connection with, the operation of the facility.

(2)
Subject to division (L)(3) of this section, the board of county
commissioners of an eligible county, by resolution adopted by a
majority of the members of the board, may increase the rate of the
tax by not more than one per cent on transactions by which lodging by
a hotel is or is to be furnished to transient guests. Revenue from
the increase in rate shall be used for the purposes of paying the
costs of constructing, improving, and maintaining a professional
sports facility in the county and paying expenses considered
necessary by the convention and visitors' bureau operating in the
county to promote travel and tourism with respect to that
professional sports facility. The tax shall take effect only after
the convention and visitors' bureau enters into a contract for the
construction, improvement, or maintenance of a professional sports
facility that is or will be located on property acquired, in whole or
in part, with revenue from the increased rate, and thereafter shall
remain in effect for the period specified in the resolution. If
revenue from the increase in rate is pledged to the payment of debt
charges on securities, the increase in rate is not subject to
diminution by initiative or referendum or by law for so long as the
securities are outstanding, unless a provision is made by law or by
the board of county commissioners for an adequate substitute for that
revenue that is satisfactory to the trustee if a trust agreement
secures payment of the debt charges. The increase in rate shall be
subject to the regulations adopted under division (A) of this
section, except that the resolution may provide that no portion of
the revenue from the increase in the rate shall be returned to
townships or municipal corporations as would otherwise be required
under division (A) of this section.

(3)
If, on December 31, 2019, the convention and visitors' bureau has not
entered into a contract for the construction, improvement, or
maintenance of a professional sports facility that is or will be
located on property acquired, in whole or in part, with revenue from
the increased rate, the authority to levy the tax under division
(L)(2) of this section is hereby repealed on that date.

(M)(1)
For the purposes described in section 307.695 of the Revised Code and
to cover the costs of administering the tax, a board of county
commissioners of a county where a tax imposed under division (A) of
this section is in effect may, by resolution adopted within ninety
days after July 15, 1985, by a majority of the members of the board,
levy an additional excise tax not to exceed three per cent on
transactions by which lodging by a hotel is or is to be furnished to
transient guests. The tax authorized by division (M) of this section
shall be in addition to any tax that is levied pursuant to divisions
(A) to (L) of this section, but it shall not apply to transactions
subject to a tax levied by a municipal corporation or township
pursuant to section 5739.08 of the Revised Code.

(2)
The board shall establish all regulations necessary to provide for
the administration and allocation of the tax. The regulations may
prescribe the time for payment of the tax, and may provide for the
imposition of a penalty or interest, or both, for late payments,
provided that the penalty does not exceed ten per cent of the amount
of tax due, and the rate at which interest accrues does not exceed
the rate per annum prescribed pursuant to section 5703.47 of the
Revised Code.

(3)
All revenues arising from the tax shall be expended in accordance
with section 307.695 of the Revised Code. The board of county
commissioners of an eligible county as defined in section 307.695 of
the Revised Code may, by resolution adopted by a majority of the
members of the board, amend the resolution levying a tax under this
division to provide that the revenue from the tax shall be used by
the board as described in division (H) of section 307.695 of the
Revised Code.

(4)
A tax imposed under this division shall remain in effect at the rate
at which it is imposed for the duration of the period during which
any agreement entered into by the board under section 307.695 of the
Revised Code is in effect, the duration of the period during which
any securities issued by the board under division (I) of section
307.695 of the Revised Code are outstanding, or the duration of the
period during which the board owns a project as defined in section
307.695 of the Revised Code, whichever duration is longest.

(N)(1)
For the purpose of providing contributions under division (B)(1) of
section 307.671 of the Revised Code to enable the acquisition,
construction, and equipping of a port authority educational and
cultural facility in the county and, to the extent provided for in
the cooperative agreement authorized by that section, for the purpose
of paying debt service charges on bonds, or notes in anticipation of
bonds, described in division (B)(1)(b) of that section, a board of
county commissioners, by resolution adopted within ninety days after
December 22, 1992, by a majority of the members of the board, may
levy an additional excise tax not to exceed one and one-half per cent
on transactions by which lodging by a hotel is or is to be furnished
to transient guests. The excise tax authorized by division (N) of
this section shall be in addition to any tax that is levied pursuant
to divisions (A) to (M) of this section, to any excise tax levied
pursuant to section 5739.08 of the Revised Code, and to any excise
tax levied pursuant to section 351.021 of the Revised Code.

(2)
The board of county commissioners shall establish all regulations
necessary to provide for the administration and allocation of the tax
that are not inconsistent with this section or section 307.671 of the
Revised Code. The regulations may prescribe the time for payment of
the tax, and may provide for the imposition of a penalty or interest,
or both, for late payments, provided that the penalty does not exceed
ten per cent of the amount of tax due, and the rate at which interest
accrues does not exceed the rate per annum prescribed pursuant to
section 5703.47 of the Revised Code.

(3)
All revenues arising from the tax shall be expended in accordance
with section 307.671 of the Revised Code and division (N) of this
section. The levy of a tax imposed under division (N) of this section
may not commence prior to the first day of the month next following
the execution of the cooperative agreement authorized by section
307.671 of the Revised Code by all parties to that agreement.

(4)
The tax shall remain in effect at the rate at which it is imposed for
the period of time described in division (C) of section 307.671 of
the Revised Code for which the revenue from the tax has been pledged
by the county to the corporation pursuant to that section, but, to
any extent provided for in the cooperative agreement, for no lesser
period than the period of time required for payment of the debt
service charges on bonds, or notes in anticipation of bonds,
described in division (B)(1)(b) of that section.

(O)(1)
For the purpose of paying the costs of acquiring, constructing,
equipping, and improving a municipal educational and cultural
facility, including debt service charges on bonds provided for in
division (B) of section 307.672 of the Revised Code, and for any
additional purposes determined by the county in the resolution
levying the tax or amendments to the resolution, including subsequent
amendments providing for paying costs of acquiring, constructing,
renovating, rehabilitating, equipping, and improving a port authority
educational and cultural performing arts facility, as defined in
section 307.674 of the Revised Code, and including debt service
charges on bonds provided for in division (B) of section 307.674 of
the Revised Code, the legislative authority of a county, by
resolution adopted within ninety days after June 30, 1993, by a
majority of the members of the legislative authority, may levy an
additional excise tax not to exceed one and one-half per cent on
transactions by which lodging by a hotel is or is to be furnished to
transient guests. The excise tax authorized by division (O) of this
section shall be in addition to any tax that is levied pursuant to
divisions (A) to (N) of this section, to any excise tax levied
pursuant to section 5739.08 of the Revised Code, and to any excise
tax levied pursuant to section 351.021 of the Revised Code.

(2)
The legislative authority of the county shall establish all
regulations necessary to provide for the administration and
allocation of the tax. The regulations may prescribe the time for
payment of the tax, and may provide for the imposition of a penalty
or interest, or both, for late payments, provided that the penalty
does not exceed ten per cent of the amount of tax due, and the rate
at which interest accrues does not exceed the rate per annum
prescribed pursuant to section 5703.47 of the Revised Code.

(3)
All revenues arising from the tax shall be expended in accordance
with section 307.672 of the Revised Code and this division. The levy
of a tax imposed under this division shall not commence prior to the
first day of the month next following the execution of the
cooperative agreement authorized by section 307.672 of the Revised
Code by all parties to that agreement. The tax shall remain in effect
at the rate at which it is imposed for the period of time determined
by the legislative authority of the county. That period of time shall
not exceed fifteen years, except that the legislative authority of a
county with a population of less than two hundred fifty thousand
according to the most recent federal decennial census, by resolution
adopted by a majority of its members before the original tax expires,
may extend the duration of the tax for an additional period of time.
The additional period of time by which a legislative authority
extends a tax levied under division (O) of this section shall not
exceed fifteen years.

(P)(1)
The legislative authority of a county that has levied a tax under
division (O) of this section may, by resolution adopted within one
hundred eighty days after January 4, 2001, by a majority of the
members of the legislative authority, amend the resolution levying a
tax under that division to provide for the use of the proceeds of
that tax, to the extent that it is no longer needed for its original
purpose as determined by the parties to a cooperative agreement
amendment pursuant to division (D) of section 307.672 of the Revised
Code, to pay costs of acquiring, constructing, renovating,
rehabilitating, equipping, and improving a port authority educational
and cultural performing arts facility, including debt service charges
on bonds provided for in division (B) of section 307.674 of the
Revised Code, and to pay all obligations under any guaranty
agreements, reimbursement agreements, or other credit enhancement
agreements described in division (C) of section 307.674 of the
Revised Code.

(2)
The resolution may also provide for the extension of the tax at the
same rate for the longer of the period of time determined by the
legislative authority of the county, but not to exceed an additional
twenty-five years, or the period of time required to pay all debt
service charges on bonds provided for in division (B) of section
307.672 of the Revised Code and on port authority revenue bonds
provided for in division (B) of section 307.674 of the Revised Code.

(3)
All revenues arising from the amendment and extension of the tax
shall be expended in accordance with section 307.674 of the Revised
Code and divisions (O) and (P) of this section.

(Q)(1)
As used in division (Q) of this section:

(a)
"Convention facilities authority" has the same meaning as
in section 351.01 of the Revised Code.

(b)
"Convention center" has the same meaning as in section
307.695 of the Revised Code.

(2)
Notwithstanding any contrary provision of division (N) of this
section, the legislative authority of a county with a population of
one million or more according to the most recent federal decennial
census that has levied a tax under division (N) of this section may,
by resolution adopted by a majority of the members of the legislative
authority, provide for the extension of such levy and may provide
that the proceeds of that tax, to the extent that they are no longer
needed for their original purpose as defined by a cooperative
agreement entered into under section 307.671 of the Revised Code,
shall be deposited into the county general revenue fund. The
resolution shall provide for the extension of the tax at a rate not
to exceed the rate specified in division (N) of this section for a
period of time determined by the legislative authority of the county,
but not to exceed an additional forty years.

(3)
The legislative authority of a county with a population of one
million or more that has levied a tax under division (A) of this
section may, by resolution adopted by a majority of the members of
the legislative authority, increase the rate of the tax levied by
such county under division (A) of this section to a rate not to
exceed five per cent on transactions by which lodging by a hotel is
or is to be furnished to transient guests. Notwithstanding any
contrary provision of division (A) of this section, the resolution
may provide that all collections resulting from the rate levied in
excess of three per cent, after deducting the real and actual costs
of administering the tax, shall be deposited in the county general
fund.

(4)
The legislative authority of a county with a population of one
million or more that has levied a tax under division (A) of this
section may, by resolution adopted on or before August 30, 2004, by a
majority of the members of the legislative authority, provide that
all or a portion of the proceeds of the tax levied under division (A)
of this section, after deducting the real and actual costs of
administering the tax and the amounts required to be returned to
townships and municipal corporations with respect to the first three
per cent levied under division (A) of this section, shall be
deposited in the county general fund, provided that such proceeds
shall be used to satisfy any pledges made in connection with an
agreement entered into under section 307.695 of the Revised Code.

(5)
No amount collected from a tax levied, extended, or required to be
deposited in the county general fund under division (Q) of this
section shall be contributed to a convention facilities authority,
corporation, or other entity created after July 1, 2003, for the
principal purpose of constructing, improving, expanding, equipping,
financing, or operating a convention center unless the mayor of the
municipal corporation in which the convention center is to be
operated by that convention facilities authority, corporation, or
other entity has consented to the creation of that convention
facilities authority, corporation, or entity. Notwithstanding any
contrary provision of section 351.04 of the Revised Code, if a tax is
levied by a county under division (Q) of this section, the board of
county commissioners of that county may determine the manner of
selection, the qualifications, the number, and terms of office of the
members of the board of directors of any convention facilities
authority, corporation, or other entity described in division (Q)(5)
of this section.

(6)(a)
No amount collected from a tax levied, extended, or required to be
deposited in the county general fund under division (Q) of this
section may be used for any purpose other than paying the direct and
indirect costs of constructing, improving, expanding, equipping,
financing, or operating a convention center and for the real and
actual costs of administering the tax, unless, prior to the adoption
of the resolution of the legislative authority of the county
authorizing the levy, extension, increase, or deposit, the county and
the mayor of the most populous municipal corporation in that county
have entered into an agreement as to the use of such amounts,
provided that such agreement has been approved by a majority of the
mayors of the other municipal corporations in that county. The
agreement shall provide that the amounts to be used for purposes
other than paying the convention center or administrative costs
described in division (Q)(6)(a) of this section be used only for the
direct and indirect costs of capital improvements, including the
financing of capital improvements, except that the agreement may
subsequently be amended by the parties that have entered into that
agreement to authorize such amounts to instead be used for any costs
related to the promotion or support of tourism or tourism-related
programs.

(b)
If the county in which the tax is levied has an association of mayors
and city managers, the approval of that association of an agreement
described in division (Q)(6)(a) of this section shall be considered
to be the approval of the majority of the mayors of the other
municipal corporations for purposes of that division.

(7)
Each year, the auditor of state shall conduct an audit of the uses of
any amounts collected from taxes levied, extended, or deposited under
division (Q) of this section and shall prepare a report of the
auditor of state's findings. The auditor of state shall submit the
report to the legislative authority of the county that has levied,
extended, or deposited the tax, the speaker of the house of
representatives, the president of the senate, and the leaders of the
minority parties of the house of representatives and the senate.

(R)(1)
As used in division (R) of this section:

(a)
"Convention facilities authority" has the same meaning as
in section 351.01 of the Revised Code.

(b)
"Convention center" has the same meaning as in section
307.695 of the Revised Code.

(2)
Notwithstanding any contrary provision of division (N) of this
section, the legislative authority of a county with a population of
one million two hundred thousand or more according to the most recent
federal decennial census or the most recent annual population
estimate published or released by the United States census bureau at
the time the resolution is adopted placing the levy on the ballot,
that has levied a tax under division (N) of this section may, by
resolution adopted by a majority of the members of the legislative
authority, provide for the extension of such levy and may provide
that the proceeds of that tax, to the extent that the proceeds are no
longer needed for their original purpose as defined by a cooperative
agreement entered into under section 307.671 of the Revised Code and
after deducting the real and actual costs of administering the tax,
shall be used for paying the direct and indirect costs of
constructing, improving, expanding, equipping, financing, or
operating a convention center. The resolution shall provide for the
extension of the tax at a rate not to exceed the rate specified in
division (N) of this section for a period of time determined by the
legislative authority of the county, but not to exceed an additional
forty years.

(3)
The legislative authority of a county with a population of one
million two hundred thousand or more that has levied a tax under
division (A) of this section may, by resolution adopted by a majority
of the members of the legislative authority, increase the rate of the
tax levied by such county under division (A) of this section to a
rate not to exceed five per cent on transactions by which lodging by
a hotel is or is to be furnished to transient guests. Notwithstanding
any contrary provision of division (A) of this section, the
resolution shall provide that all collections resulting from the rate
levied in excess of three per cent, after deducting the real and
actual costs of administering the tax, shall be used for paying the
direct and indirect costs of constructing, improving, expanding,
equipping, financing, or operating a convention center.

(4)
The legislative authority of a county with a population of one
million two hundred thousand or more that has levied a tax under
division (A) of this section may, by resolution adopted on or before
July 1, 2008, by a majority of the members of the legislative
authority, provide that all or a portion of the proceeds of the tax
levied under division (A) of this section, after deducting the real
and actual costs of administering the tax and the amounts required to
be returned to townships and municipal corporations with respect to
the first three per cent levied under division (A) of this section,
shall be used to satisfy any pledges made in connection with an
agreement entered into under section 307.695 of the Revised Code or
shall otherwise be used for paying the direct and indirect costs of
constructing, improving, expanding, equipping, financing, or
operating a convention center.

(5)
Any amount collected from a tax levied or extended under division (R)
of this section may be contributed to a convention facilities
authority created before July 1, 2005, but no amount collected from a
tax levied or extended under division (R) of this section may be
contributed to a convention facilities authority, corporation, or
other entity created after July 1, 2005, unless the mayor of the
municipal corporation in which the convention center is to be
operated by that convention facilities authority, corporation, or
other entity has consented to the creation of that convention
facilities authority, corporation, or entity.

(S)
As used in division (S) of this section, "soldiers' memorial"
means a memorial constructed and funded under Chapter 345. of the
Revised Code.

The
board of county commissioners of a county with a population between
one hundred three thousand and one hundred seven thousand according
to the most recent federal decennial census, by resolution adopted by
a majority of the members of the board within six months after
September 15, 2014, may levy a tax not to exceed three per cent on
transactions by which a hotel is or is to be furnished to transient
guests. The purpose of the tax shall be to pay the costs of
expanding, maintaining, or operating a soldiers' memorial and the
costs of administering the tax. All revenue arising from the tax
shall be credited to one or more special funds in the county treasury
and shall be spent solely for the purposes of paying those costs.

The
board of county commissioners shall adopt all rules necessary to
provide for the administration of the tax subject to the same
limitations on imposing penalty or interest under division (A) of
this section.

(T)
As used in division (T) of this section:

(1)
"Eligible county" means a county in which a county
agricultural society or independent agricultural society is organized
under section 1711.01 or 1711.02 of the Revised Code, provided the
agricultural society owns a facility or site in the county at which
an annual harness horse race is conducted where one-day attendance
equals at least forty thousand attendees.

(2)
"Permanent improvements," "debt charges," and
"financing costs" have the same meanings as in section
133.01 of the Revised Code.

(3)
"Costs of permanent improvements" include all costs allowed
in section 133.15 of the Revised Code.

A
board of county commissioners of an eligible county, by resolution
adopted by a majority of the members of the board, may levy an excise
tax at the rate of up to three per cent on transactions by which
lodging by a hotel is or is to be furnished to transient guests for
the purpose of paying the costs of permanent improvements at sites at
which one or more agricultural societies conduct fairs or exhibits,
including paying financing costs and debt charges on bonds, or notes
in anticipation of bonds, paying the costs of maintaining or
operating such permanent improvements, and paying the costs of
administering the tax.

A
resolution adopted under division (T) of this section, other than a
resolution that only extends the period of time for which the tax is
levied, shall direct the board of elections to submit the question of
the proposed lodging tax to the electors of the county at a special
election held on the date specified by the board in the resolution,
provided that the election occurs not less than ninety days after a
certified copy of the resolution is transmitted to the board of
elections. A resolution submitted to the electors under division (T)
of this section shall not go into effect unless it is approved by a
majority of those voting upon it. The resolution takes effect on the
date the board of county commissioners receives notification from the
board of elections of an affirmative vote.

The
tax shall remain in effect for the period specified in the
resolution, not to exceed five years, and may be extended for an
additional period of years that is at least the number of years
required for payment of the debt charges on bonds or notes in
anticipation of bonds authorized under this division but not in
excess of fifteen years thereafter by a resolution adopted by a
majority of the members of the board. A resolution extending the
period of time for which the tax is in effect is not subject to
approval of the electors of the county, but is subject to referendum
under sections 305.31 to 305.99 of the Revised Code. All revenue
arising from the tax shall be credited to one or more special funds
in the county treasury and shall be spent solely for the purposes of
paying the costs of such permanent improvements, including paying
financing costs and debt charges on bonds, or notes in anticipation
of bonds, and maintaining or operating the improvements. Revenue
allocated for the use of a county agricultural society may be
credited to the county agricultural society fund created in section
1711.16 of the Revised Code upon appropriation by the board. If
revenue is credited to that fund, it shall be expended only as
provided in that section.

The
board of county commissioners shall adopt all rules necessary to
provide for the administration of the tax. The rules may prescribe
the time for payment of the tax, and may provide for the imposition
or penalty or interest, or both, for late payments, provided that the
penalty does not exceed ten per cent of the amount of tax due, and
the rate at which interest accrues does not exceed the rate per annum
prescribed in section 5703.47 of the Revised Code.

The
board of county commissioners may issue bonds, or notes in
anticipation thereof, pursuant to Chapter 133. of the Revised Code,
for the purpose of paying the costs of permanent improvements as
authorized in this division and pledge the revenue arising from the
tax for that purpose. The board of county commissioners may pledge or
contribute the revenue arising from the tax levied under this
division to a port authority created under Chapter 4582. of the
Revised Code, and the port authority may issue bonds, or notes in
anticipation thereof, pursuant to that chapter, for the purpose of
paying the costs of permanent improvements as authorized in this
division.

(U)
As used in division (U) of this section, "eligible county"
means a county in which a tax is levied under division (A) of this
section at a rate of three per cent and whose territory includes a
part of Lake Erie the shoreline of which represents at least fifty
per cent of the linear length of the county's border with other
counties of this state.

The
board of county commissioners of an eligible county that has entered
into an agreement with a port authority in the county under section
4582.56 of the Revised Code may levy an additional lodging tax on
transactions by which lodging by a hotel is or is to be furnished to
transient guests for the purpose of financing lakeshore improvement
projects constructed or financed by the port authority under that
section. The resolution levying the tax shall specify the purpose of
the tax, the rate of the tax, which shall not exceed two per cent,
and the number of years the tax will be levied or that it will be
levied for a continuing period of time. The tax shall be administered
pursuant to the regulations adopted by the board under division (A)
of this section, except that all the proceeds of the tax levied under
this division shall be pledged to the payment of the costs, including
debt charges, of lakeshore improvements undertaken by a port
authority pursuant to the agreement under section 4582.56 of the
Revised Code. No revenue from the tax may be used to pay the current
expenses of the port authority.

A
resolution levying a tax under division (U) of this section is
subject to referendum under sections 305.31 to 305.41 and 305.99 of
the Revised Code.

(V)(1)
As used in division (V) of this section:

(a)
"Tourism development district" means a district designated
by a municipal corporation under section 715.014 of the Revised Code
or by a township under section 503.56 of the Revised Code.

(b)
"Lodging tax" means a tax levied pursuant to this section
or section 5739.08 of the Revised Code.

(c)
"Tourism development district lodging tax proceeds" means
all proceeds of a lodging tax derived from transactions by which
lodging by a hotel located in a tourism development district is or is
to be provided to transient guests.

(d)
"Eligible county" has the same meaning as in section
307.678 of the Revised Code.

(2)(a)
Notwithstanding division (A) of this section, the board of county
commissioners, board of township trustees, or legislative authority
of any county, township, or municipal corporation that levies a
lodging tax on September 29, 2017, and in which any part of a tourism
development district is located on or after that date shall amend the
ordinance or resolution levying the tax to require either of the
following:

(i)
In the case of a tax levied by a county, that all tourism development
district lodging tax proceeds from that tax be used exclusively to
foster and develop tourism in the tourism development district;

(ii)
In the case of a tax levied by a township or municipal corporation,
that all tourism development district lodging tax proceeds from that
tax be used exclusively to foster and develop tourism in the tourism
development district.

(b)
Notwithstanding division (A) of this section, any ordinance or
resolution levying a lodging tax adopted on or after September 29,
2017, by a county, township, or municipal corporation in which any
part of a tourism development district is located on or after that
date shall require that all tourism development district lodging tax
proceeds from that tax be used exclusively to foster and develop
tourism in the tourism development district.

(c)
A county shall not use any of the proceeds described in division
(V)(2)(a)(i) or (V)(2)(b) of this section unless the convention and
visitors' bureau operating within the county approves the manner in
which such proceeds are used to foster and develop tourism in the
tourism development district. Upon obtaining such approval, the
county may pay such proceeds to the bureau to use for the agreed-upon
purpose.

A
municipal corporation or township shall not use any of the proceeds
described in division (V)(2)(a)(ii) or (V)(2)(b) of this section
unless the convention and visitors' bureau operating within the
municipal corporation or township approves the manner in which such
proceeds are used to foster and develop tourism in the tourism
development district. Upon obtaining such approval, the municipal
corporation or township may pay such proceeds to the bureau to use
for the agreed-upon purpose.

(3)(a)
Notwithstanding division (A) of this section, the board of county
commissioners of an eligible county that levies a lodging tax on
March 23, 2018, may amend the resolution levying that tax to require
that all or a portion of the proceeds of that tax otherwise required
to be spent solely to make contributions to the convention and
visitors' bureau operating within the county shall be used to foster
and develop tourism in a tourism development district.

(b)
Notwithstanding division (A) of this section, the board of county
commissioners of an eligible county that adopts a resolution levying
a lodging tax on or after March 23, 2018, may require that all or a
portion of the proceeds of that tax otherwise required to be spent
solely to make contributions to the convention and visitors' bureau
operating within the county pursuant to division (A) of this section
shall be used to foster and develop tourism in a tourism development
district.

(c)
A county shall not use any of the proceeds in the manner described in
division (V)(3)(a) or (b) of this section unless the convention and
visitors' bureau operating within the county approves the manner in
which such proceeds are used to foster and develop tourism in the
tourism development district. Upon obtaining such approval, the
county may pay such proceeds to the bureau to use for the agreed upon
purpose.

(W)(1)
As used in division (W) of this section:

(a)
"Eligible county" means a county with a population greater
than three hundred thousand and less than three hundred fifty
thousand that levies a tax under division (A) of this section at a
rate of three per cent;

(b)
"Cost" and "facility" have the same meanings as
in section 351.01 of the Revised Code.

(2)
A board of county commissioners of an eligible county, by resolution
adopted by a majority of the members of the board, may levy an excise
tax at the rate of up to three per cent on transactions by which
lodging by a hotel is or is to be furnished to transient guests. All
of the revenue from the tax shall be used to pay the costs of
administering the tax or pledged and contributed to a convention
facilities authority established by the board of county commissioners
under Chapter 351. of the Revised Code and used by the authority to
pay the cost of constructing a facility in the county, including
paying bonds, or notes issued in anticipation of bonds, as provided
by that chapter, or paying the expenses of maintaining, operating, or
promoting such a facility. No portion of the revenue arising from the
tax need be returned to municipal corporations or townships as
required for taxes levied under division (A) of this section.

(3)
A resolution adopted under division (W) of this section shall direct
the board of elections to submit the question of the proposed lodging
tax to the electors of the county at a special election held on the
date specified by the board in the resolution, provided that the
election occurs not less than ninety days after a certified copy of
the resolution is transmitted to the board of elections. A resolution
submitted to the electors under division (W) of this section shall
not go into effect unless it is approved by a majority of those
voting upon it. The resolution takes effect on the date the board of
county commissioners receives notification from the board of
elections of an affirmative vote.

(4)
Once the tax is approved by the electors of the county pursuant to
division (W)(3) of this section, it shall not be subject to
diminution by initiative or referendum or by law while any bonds, or
notes in anticipation of bonds, issued by the authority under Chapter
351. of the Revised Code to which the revenue is pledged, remain
outstanding in accordance with their terms, unless provision is made
by law or by the board of county commissioners for an adequate
substitute therefore that is satisfactory to the trustee if a trust
agreement secures the bonds.

(5)
The tax authorized by division (W) of this section shall be in
addition to any other tax that is levied pursuant to this section.

(X)(1)
As used in division (X) of this section:

(a)
"Convention facilities authority," "cost," and
"facility" have the same meanings as in section 351.01 of
the Revised Code, except that "facility" does not include a
"sports facility," as that term is defined in that section,
other than a facility intended to house a major league soccer team.

(b)
"Eligible county" means a county with a population greater
than eight hundred thousand but less than one million that levies a
tax under division (A) of this section.

(c)
"Port authority" means a port authority created under
Chapter 4582. of the Revised Code.

(2)
A board of county commissioners or the legislative authority of an
eligible county may, by resolution adopted by a majority of the
members of the board or legislative authority, levy an excise tax at
a rate not to exceed one per cent on transactions by which lodging by
a hotel is or is to be furnished to transient guests. All revenue
arising from the tax shall be used to pay the costs of administering
the tax or pledged and contributed to the convention and visitors'
bureau operating within the applicable eligible county, a convention
facilities authority within the applicable eligible county, or a port
authority and used by the convention and visitors' bureau, the
convention facilities authority, or the port authority to pay the
cost of acquiring, constructing, renovating, expanding, maintaining,
or operating one or more facilities in the county, including paying
bonds, or notes issued in anticipation of bonds, or paying the
expenses of maintaining, operating, or promoting one or more
facilities. No portion of the revenue arising from the tax need be
returned to municipal corporations or townships as required for taxes
levied under division (A) of this section.

(3)
The tax authorized by division (X) of this section shall be in
addition to any other tax that is levied pursuant to this section.

(4)
Any board of county commissioners of an eligible county that,
pursuant to division (D)(2) of this section, has amended a resolution
levying the tax authorized by division (A) of this section may
further amend the resolution to provide that all or a portion of the
revenue referred to in division (D)(2)(b) of this section and
division (A) of this section may be pledged and contributed to pay
the costs of acquiring, constructing, renovating, expanding,
maintaining, or operating one or more facilities in the county,
including paying bonds, or notes issued in anticipation of bonds, or
paying the expenses of maintaining, operating, or promoting one or
more facilities.

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

Section
3.
A
board of county commissioners of a county that levies an increased
rate of tax under division (D) of section 5739.09 of the Revised
Code, as that division existed before the effective date of its
amendment by this act, and that is no longer eligible to levy that
increased rate under that division as amended by this act, shall
amend the resolution levying the tax to comply with that amendment on
or before the first day of the first month beginning after the
effective date of that amendment.