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Bill

HB 161

Extend sales, use and local lodging taxes to short-term rentals

136th Legislature (2025-2026) Introduced by Adam Bird and 3 co-sponsors

HB 161 extends Ohio sales, use, and lodging taxes to short-term rentals, requiring hosts to comply with tax collection obligations currently applied to hotels.

Referred to committee
#economicdevelopment #taxation #tourism
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WeVote Research Nonpartisan
Bill Summary · HB 161

Legislative bill overview

HB 161 would extend Ohio's existing sales tax, use tax, and local lodging taxes to short-term rental properties. Currently, these rentals operate in a legal gray area regarding tax obligations. The bill aims to bring short-term rentals under the same tax framework as hotels and traditional lodging establishments.

Why is this important

Short-term rental platforms like Airbnb and Vrbo have grown substantially, creating revenue gaps for municipalities that depend on lodging taxes for tourism infrastructure and services. Extending these taxes would level the playing field between traditional hotels (which collect these taxes) and short-term rental hosts, while generating new revenue for state and local governments.

Potential points of contention

  • Compliance burden: Property owners renting units occasionally may face complex tax filing requirements they currently don't navigate, potentially creating barriers for small-scale hosts
  • Competitive impact: Extending taxes could increase costs for short-term rental hosts relative to long-term rentals, potentially reducing the affordability advantage these platforms currently offer consumers
  • Implementation challenges: Determining which rentals qualify as "short-term" and ensuring platforms properly collect and remit taxes will require clear definitions and enforcement mechanisms

Compiled from official sources — confirm details with the bill’s official record.

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