Centerville, Washington Twp. joining hotel tax crowd

Collections worth millions for counties, localities


Local Lodging Tax Collections in 2010

Montgomery County $2,092,910

Dayton $580,119

Englewood $169,730

Huber Heights $135,749

Miamisburg $219,465

Moraine $21,532

Riverside, $7,071

Vandalia $37,518

West Carrollton $0

Brookville $41,704

Butler Twp. $529, 321

Miami Twp. $257, 695

Countywide total $4,092,815

Greene County $832,800

Beavercreek $295,337

Fairborn $375,184

Xenia $38,016

Beavercreek Twp. $7,180

Countywide total $1,548,518

Warren County $1,822,366

Franklin $42,350

Lebanon $15,817

Mason $678,683

Springboro $56,322

Waynesville $2,260

Deerfield Twp. $786,644

Turtlecreek Twp. $1,152

Union $2,307

Countywide total $3,407,901

Miami County $285,844

Piqua $52,122

Tipp City $44,677

Troy $181,325

Countywide total $563,969

Butler County $906,846

Fairfield $122,067

Hamilton $121,552

Middletown $208,421 (estimate)

Oxford $327,296

Monroe $57,316

Liberty Twp. $0

Oxford Twp. $405

West Chester Twp. $727,997

Countywide total $2,471,900

Clark County (no countywide tax)

Springfield $562,708

Moorefield Twp. $17,403

Springfield Twp. $77,281

Countywide total $657,392

(Source: Ohio Department of Taxation)

The City of Centerville and Washington Township may both institute 3 percent lodging taxes in 2013.

Most area counties, cities and many townships in the region already collect a local hotel and motel tax, which is permitted under state law and brings in millions of dollars each year.

The total for Montgomery, Greene, Warren, Butler, Miami and Clark counties for 2010, the latest survey available from the Ohio Department of Taxation, was more than $12.7 million. That was more than 10 percent of statewide collections, which topped $124 million.

“We are looking at it. We are one of the few Montgomery County communities not to have one,” Centerville city manager Greg Horn said. “We estimate it would raise approximately $50,000 at present.”

Washington Township administrator Jesse Lightle said the township “does not levy a lodging tax now. I expect that trustees will be considering adopting one at the Dec. 17 meeting. We are finalizing legislation for their consideration.”

With three hotels and motels in the township at present, collections could top $100,000 a year.

Centerville currently has only one — the Holiday Inn Express at 5655 Wilmington Pike. But planners of the proposed more than 200-acre Cornerstone Ltd. development near Wilmington Pike and I-675 in the city have discussed including a hotel there.

Montgomery County’s 3 percent tax raised almost $2.1 million in 2010. On top of that, the City of Dayton, Englewood, Huber Heights, Moraine, Riverside, Vandalia, Brookville, Butler Twp. and Miami Twp. also levied 3 percent taxes within their boundaries.

Kettering is the only other city in Montgomery County that does not currently have a local tax.

Montgomery County’s collections are used to fund the Dayton/Montgomery County Convention and Visitor Bureau.

Timothy Nolan, director of the Montgomery County Office of Management and Budget, said the county tax brought in $2.4 million in 2011 and $2.5 million so far in 2012. “We don’t track which cities, villages and townships have taxes.”

As of December, Greene County had collected more than $806,000 during 2012.

Rose Hallam Vidmar, a researcher for the Ohio Department of Taxation’s analysis division, said seven additional communities in the state have added the lodging tax in 2012, with the possibility that two more may as well. She doubted that there would be a rush of others adding the tax. “It’s pretty well known already that this is an option,” she said.

State collections peaked in 2008 at $134. 1 million, dropped to $118.5 in 2009, but have begun to climb again, another indicator of the improving economy.

Ohio hotels charge a statewide sales tax, but the state allows cities and localities the option of adding additional fees and taxes for hotel and motel visitors. Charges must be paid as part of the overnight fee for staying at the hotel or motel. If a room costs $100, for example, a 3 percent tax would amount to $3. In the case of a city like Dayton, which also levies a 3 percent tax, the charge is $6.

Hotels and motels with more than five sleeping rooms must collect the tax.

Montgomery County provides exemptions to the additional tax for guests working for the federal government, guests staying longer than 30 days, and guests using the hotel for daytime meetings or seminar services.

Charges are higher in some counties because Ohio law permits additional levies to fund designated purposes or projects. Those with the highest combined tax rates, as of Dec. 31, 2010, included: Lucas, 13 percent; Hamilton, 10.5 percent; Franklin and Muskingum counties, 10 percent; Cuyahoga, 9.5 percent; Guernsey, 9 percent, and Summit, 8.5 percent.

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