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ORDINANCE NO. 25-178 INTRODUCED BY: Mrs. Fenderbosch AN ORDINANCE ESTABLISHING A LODGING EXCISE TAX ON HOTELS AND SHORT-TERM RENTALS WITHIN THE CITY OF AVON LAKE, PROVIDING FOR TAX COLLECTION AND REMITTANCE BY LODGING PLATFORMS AND OPERATORS, AND DECLARING AN EMERGENCY. WHEREAS, the City desires to ensure that all transient lodging establishments, including short-term rentals, contribute equitably to the costs of municipal services and tourism promotion; and WHEREAS, Ohio Revised Code Sections 5739.08 and 5739.091 authorize municipalities to levy an excise tax on transactions by which lodging is furnished to transient guests; and WHEREAS, the use of lodging platforms to arrange, reserve, and pay for accommodations has become a principal means of booking both hotel and short-term rental lodging; and WHEREAS, Council finds it necessary and appropriate to require lodging platforms to collect and remit the lodging excise tax on behalf of operators, in order to ensure efficient collection and fair competition. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF AVON LAKE, LORAIN COUNTY, STATE OF OHIO: Section No. 1: Definitions. For purposes of this Ordinance: (a) “City” means the City of Avon Lake, Ohio. (b) “Lodging” means the furnishing of sleeping accommodations within the City to a transient guest for a period of fewer than thirty (30) consecutive days, for consideration. (c) “Transient guest” means any person occupying lodging for fewer than thirty (30) consecutive days. (d) “Operator” means any person who owns, leases, manages, or otherwise controls lodging and makes it available to transient guests, whether directly or through a lodging platform. ORDINANCE NO. 25-178 Page | 2 (e) “Lodging platform” means any person, firm, corporation, or entity that provides a means, whether through an online, digital, or other electronic platform, for arranging, listing, or booking lodging accommodations and that either (1) collects payment or fees from transient guests on behalf of an operator, or (2) provides a means through which payment is processed for lodging. (f) “Short-term rental” means a dwelling unit, or portion thereof, offered or provided to transient guests for lodging for fewer than thirty (30) consecutive days. (g) “Gross rent” means the total amount charged to a transient guest for lodging, including all cleaning, booking, and service fees charged in connection with the lodging, but excluding the tax imposed under this Ordinance. Section No. 2: Tax Imposed. (a) There is hereby levied an excise tax of three percent (3 %) on the gross rent paid for lodging furnished to a transient guest within the City. (b) The tax shall be in addition to any other taxes imposed by law and shall apply to all hotels, motels, inns, bed-and-breakfast establishments, and short-term rentals located within the City. Section No. 3: Collection by Lodging Platforms and Operators. (a) When lodging is booked or paid for through a lodging platform, the platform shall: 1. Collect the lodging excise tax at the time the rent is charged to the transient guest; and 2. Remit the full amount of tax collected to the City of Avon Lake Department of Finance; and 3. File a monthly return identifying the total taxable rents received for transactions within the City. (b) The platform shall be considered the agent of the operator for purposes of tax collection and remittance. (c) An operator that exclusively uses one or more lodging platforms that collect and remit the tax under this Ordinance shall not be required to separately collect or remit the tax, provided the platform is in full compliance. (d) If a lodging platform fails to collect or remit tax for any transaction, the operator shall remain jointly and severally liable for the unpaid tax. Section No. 4: Registration, Returns, and Records. ORDINANCE NO. 25-178 Page | 3 (a) Each lodging platform and any operator not using a platform shall register with the City prior to furnishing lodging subject to this tax. (b) Lodging platforms and non-platform operators shall file returns and remit the tax to the City on or before the twentieth (20th) day of each month for lodging furnished during the preceding month. (c) Returns shall include gross rents, tax collected, exempt transactions, and such additional data as the City may require. (d) The City may require that lodging platforms provide sufficient data to verify the number of bookings, addresses of taxable properties, and amounts collected. (e) All records shall be retained for at least three (3) years and shall be made available to the City upon reasonable notice for audit. Section No. 5: Penalties and Interest. If any person fails to remit the tax as required by this Ordinance, there shall be added a penalty of ten percent (10%) of the amount due, together with interest at one percent (1%) per month until paid. Section No. 6: Use of Revenue. All revenue collected under this Ordinance shall be deposited into a separate fund known as the Lodging Tax Fund. At least fifty percent (50%) of the revenue shall be used for tourism, recreation, and visitor-related services, and the remainder shall be used for general municipal purposes. Section No. 7: Administration and Agreements. (a) The Finance Director is authorized to promulgate rules, forms, and procedures necessary to administer and enforce this Ordinance. (b) The Finance Director may enter into agreements with lodging platforms to facilitate collection and remittance, ensure confidentiality of taxpayer data, and obtain periodic reports of lodging transactions within the City. Section No. 8: Enforcement. The City may assess unpaid taxes, penalties, and interest, file civil actions for collection, or take such other enforcement measures as authorized by law. The tax imposed by this Ordinance constitutes a debt owed to the City by the transient guest, and the operator or lodging platform acts as trustee of the funds for the City. ORDINANCE NO. 25-178 Page | 4 Section No. 9: Severability. If any provision of this Ordinance is held invalid, the remainder shall not be affected and shall remain in full force and effect. Section No. 10: That it is found and determined that all formal actions of this Council concerning and relating to the adoption of this Ordinance were taken in an open meeting of this Council, and that all deliberations of this Council and any of its committees, which resulted in such formal actions, were in meetings open to the public in compliance with all legal requirements, including Section 121.22 of the Ohio Revised Code. Section No. 11: That this Ordinance is hereby declared to be an emergency measure, the emergency being the necessity of ensuring uniform tax treatment of all lodging providers and securing the timely collection of revenues to support municipal services, thus for the public welfare. Therefore, this Ordinance shall be in full force and effect from and immediately after its passage and approval by the Mayor. 1st reading: 11/10/2025 2nd reading: 11/24/2025 3rd reading: PASSED: 12/08/2025 ____________________________ Council President POSTED: 12/12/2025 APPROVED: 12/09/2025 ATTEST: _________________________ ____________________________ Clerk of Council Mayor