Commissioners clarify county's lodging tax

Highland County Prosecutor Anneka Collins met with the Highland County Board of Commissioners (Shane Wilkin, Tom Horst and Jeremy Shaffer) Wednesday, Aug. 28 for discussion related to the county's excise lodging tax.

For background, Highland County Auditor Bill Fawley said the county commissioners enacted the county lodging tax in 1995.

Collins advised commissioners this week that an amendment to the county lodging tax is necessary in order to appropriate taxes to the local townships and municipalities which do not have a lodging tax, but which do have qualifying businesses.

It was determined that the village of Greenfield and Paint and Liberty townships have lodging businesses, and that they qualify for an amount not to exceed 33 1/3 percent of the excise tax  – which is "not to exceed 3 percent on transactions by which lodging by a hotel is or is to be furnished to transient guests."

The two townships and village are to receive their respective percentages after the county deducts the real and actual costs of administering the tax.

Collins referenced a March 29, 2013 opinion by Ohio Attorney General Mike DeWine (see: https://www.ohioattorneygeneral.gov/OhioAttorneyGeneral/files/26/269875…).

In that opinion, DeWine writes:

"The language in R.C. 5739.09(B)(1) permits the legislative authority of a municipal corporation or township to levy by ordinance or resolution a hotel lodging excise tax. This tax, however, may not be levied by ordinance or resolution if the municipal corporation or township is 'wholly or partly located in a county that has in effect a resolution levying an excise tax pursuant to division (A)(1).' R.C. 5739.09(B)(1).

"This means that if any portion of the municipal corporation or township is located within a county that already has levied a hotel lodging excise tax under division (A)(1), then the municipal corporation or township is not permitted to levy a hotel lodging excise tax pursuant to division (B)(1) anywhere in the municipal corporation or township, even in those portions of the municipal corporation or township that are located in other counties that have not levied hotel lodging excise taxes under R.C. 5739.09(A)(1)."

Discussion ensued regarding the city of Hillsboro's lodging tax, which was passed Sept. 12, 2005 via Ordinance 2005-9 under Section 35.90 Lodging Tax.

"Hillsboro has their own tax, correct?" Commissioner Tom Horst asked.

"Since the city has a lodging tax, did ours go off when the city imposed theirs?" Fawley asked. "The motel people say they should not have to pay both (a county lodging tax and a city lodging tax)."

"We're trying to fix ours," Commission President Shane Wilkin said.

Collins told The Highland County Press that she and Wilkin have met with city officials regarding the apparent existence of two lodging taxes – one county and one municipal – within the city of Hillsboro.

"The General Assembly tried to avoid double taxation," Collins said. "There are only two excise/lodging taxes in the county – ours and the city of Hillsboro's. Ours was in place first, 10 years earlier than the city's."

"Who checks on someone (in the lodging industry) who does not file?" Horst asked. Horst also asked in a Marshall area business on S.R. 124 should be taxed.

No one offered a response.

"The downside, all the money taken in at the present time is used by the CVB (the Highland County Convention and Visitors Bureau). It will limit what they can do," Horst said.

"Could the city of Greenfield and the townships donate (their respective lodging tax revenues) to the CVB?" Wilkin asked.

"For audit purposes, they could give it back," Collins said. She said she would advise that the county send Greenfield and Paint and Liberty townships their tax revenues; they, in turn, can appropriate the funds to the CVB.

Wilkin said the two townships and the village of Greenfield have not been contacted about the lodging tax issue. Wilkin pointed out that this is a relatively small dollar amount each year.

In total, Fawley said, the county lodging tax generates $25,000 for the CVB. The county keeps approximately $832 a year in administrative costs, Fawley said.

"We're not passing a new tax, just fixing (the 1995 county legislation)," Collins said.

Fawley asked that the new structure start Oct. 1, as these taxes are paid on a quarterly basis.

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• In other business, commissioners did not receive any bids on a curb and gutter project on South High Street in the city of Hillsboro. Commissioners could not recall any other time when public projects failed to generate a single bid.

One bid packet of information was picked up prior to the bid opening deadline, but was not returned, commissioners said.

Hillsboro City Street Department Superintendent Steve Pence asked commissioners: "Is there a certain date the project has to be completed or we'll lose the (CDBG) funds?"

It was advised by Mike McCarty that the project has to be completed by the end of the year.

Commissioners asked Collins if they could hire someone to complete the project – estimated at approximately $30,000 – or if they needed to rebid it.

Collins said she would look into it and advise accordingly.

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Resolutions

Commissioners passed the following resolutions, all by 3-0 votes:

• A modification within Commissioners' Budget for $1,000 from Other Expenses to Supplies.

• A modification from Commissioners - County Miscellaneous to Contracts & Repairs for $10,000.

• A new line item requested by Probation, Refunds, and modification from Advances Out to Refunds for $699.26.

• A new line item requested by Probation, Refunds, and modification from Advances Out to Refunds for $890.36.

• A new line item requested by Probation, Refunds, and modification from Advances Out to Refunds for $1,037.97.

• A new line item requested by Probation, Refunds, and modification from Advances Out to Refunds for $1,605.45.

• A modification requested by Probation to Community Corrections Act Account, from Advances Out to Refunds for $378.19.

• A new fund requested by the Sheriff for HC/JFS & SO Inc. and transfer from County to HC/JFS & SO and appropriate line items.

• EMA agrees to re-appoint and establish new appointments to the Highland County Local Emergency Planning Board. The re-appointments and new appointments to the board include: returning members Kyle Arn, Bruce Frazer, Bradley George, Thomas Horst, James Lyle, Jeff Martin, Dean Otworth, Rory Ryan and Ronald Ward; and new members Tracey L. Coss and Kenny Stevens.

• Commissioners set Sept. 18, 2013 as the date for viewing and hearing East Street Alley Closing, Buford, Clay Township. The Wednesday, Sept. 18 commissioners meeting will begin at 10 a.m., as commissioners are scheduled to meet with County Engineer Dean Otworth in Buford earlier that morning.

• Re-entry requests to rescind Resolution 13-205.