Explanation
On June 22nd, 2026, Council passed Ordinance 1953-2026 to amend Section 371.02 of the Columbus City Codes to shift the Affordable Housing Trust’s (AHT) Hotel Motel and Short-Term Rental Excise Tax distribution to Experience Columbus.
After passage, the Columbus Income Tax Division discovered a mathematical discrepancy that left one-tenths percent (0.10%) of the impacted bed tax proceeds unaccounted for. As a result, the Division is unable to implement the change. This Ordinance repeals and replaces 1953-2026 by correcting the discrepancy.
Fiscal Impact: No immediate funding is required for this legislation. The City’s financial commitments contemplated herein, including the City Contribution, will be subject to future appropriation and authorization by City Council.
Emergency Designation: An emergency exists to repeal and replace ordinance 1953-2026, and to amend Section 371.02 of the Columbus City Codes in that additional delay in the change greatly complicates the execution of an external agreement between the Affordable Housing Trust for Columbus and Franklin County and Experience Columbus as a result of the monthly distribution schedule of the Hotel-Motel-Short-Term Rental Excise Tax proceeds.
Title
To repeal and replace Ordinance 1953-2026, passed June 22, 2026; to amend Section 371.02 of the Columbus City Codes to shift the Affordable Housing Trust’s (AHT) Hotel Motel and Short-Term Rental Excise Tax distribution to Experience Columbus; and to declare an emergency. ($0.00)
Body
WHEREAS, by Ordinance 1953-2026 Council amended Section 371.02 of the Columbus City Codes to shift the Affordable Housing Trust’s (AHT) Hotel Motel and Short-Term Rental Excise Tax distribution to Experience Columbus; and
WHEREAS, this ordinance repeals and replaces ordinance 1953-2026 to correct a mathematical discrepancy that prevented the City’s Income Tax Division from implementing the approved change; and
WHEREAS, the City intends to shift the current AHT Bed Tax distribution to Experience Columbus for the purpose of providing increased revenue for the advancement of the cultural development of the community, and for promotion and publicizing of the city. This adjustment reflects that Experience Columbus plays a central role in positioning Columbus as an economic powerhouse in the region, leading to the continued growth of local jobs, generating substantial visitor spending, and contributing significantly to the region’s tax base: and
WHEREAS, this adjustment reflects that Experience Columbus plays a central role in positioning Columbus as an economic powerhouse in the region, leading to the continued growth of local jobs, generating substantial visitor spending, and contributing significantly to the region’s tax base; and
WHEREAS, in return the City intends to enter into a separate contribution agreement with AHT that contains a 5-year funding commitment totaling $12.5 million while the City searches for a new funding stream to replace AHT’s Bed Tax distribution long-term; and
WHEREAS, this arrangement will provide AHT with a higher, more consistent funding level to support their expansion and housing efforts
WHEREAS, this legislation amends Section 371.02 of the Columbus City Codes to shift the Affordable Housing Trust’s (AHT) Hotel-Motel and Short-Term Rental Excise Tax distribution to Experience Columbus;
WHEREAS, an emergency exists to amend Section 371.02 of the Columbus City Codes in that additional delay in the change greatly complicates the execution of an external agreement between the Affordable Housing Trust for Columbus and Franklin County and Experience Columbus as a result of the monthly distribution schedule of the Hotel-Motel-Short-Term Rental Excise Tax proceeds; NOW, THEREFORE,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
SECTION 1. That Section 371.02 of the Columbus City Codes is hereby amended as follows:
371.02 - Imposition of tax
(a) For the purpose of providing revenue for the advancement of the cultural development of the community, for promotion and publicizing of the city of Columbus as a desirable location for conventions, trade shows and similar events to encourage the patronage and business of cultural, educational, religious, professional, sports, and other organizations to utilize the city of Columbus and its numerous facilities for such events, to support the production of affordable housing and create home ownership opportunities within the city of Columbus through the Affordable Housing Trust for Columbus and Franklin County, and for the further purpose of providing emergency human service needs to the community, all for the benefit of the citizens of the city of Columbus, an excise tax of three (3) percent is hereby levied on transactions by which lodging by a hotel or transient accommodations, including short-term rentals, is or is to be furnished to transient guests or short-term rental guests, pursuant to former Ohio Revised Code Sec. 5739.02(C)(1) (currently Ohio Revised Code Sec. 5739.08(A)) and furthermore, an additional excise tax of three (3) percent is hereby levied on transactions by which lodging by a hotel or transient accommodations, including short-term rentals, is or is to be furnished to transient guests or short-term rental guests, pursuant to former Ohio Revised Code Sec. 5739.02(C)(2) (currently Ohio Revised Code Sec. 5739.08(B)). Effective January 1, 1989, the excise tax of three (3) percent levied pursuant to former Ohio Revised Code Sec. 5739.02 (C)(1) (currently Ohio Revised Code Sec. 5739.08(A)) above shall be reduced to two and one-tenths (2.1) percent and shall be levied on transactions by which lodging by a hotel or transient accommodations is or is to be furnished to transient guests.
(b) Although the above levies are separate and distinct, for purposes of determining distribution, the combined amounts are hereinafter referred to as the "Hotel-Motel-Short-Term Rental Excise Taxes".
(c) Except as otherwise provided in this Chapter, all revenues received by the city from the hotel/motel/short-term rental excise taxes each year shall be divided for the use of promoting and publicizing the city of Columbus as a desirable location for conventions, trade shows, and similar events; for use in purchasing cultural services for the enrichment of the community; for support of the production of affordable housing and creation of home ownership opportunities in Columbus; and for emergency human service needs. Of the combined rates of five and one-tenths percent (5.1%) the amount of tax allocated for the purpose of promoting the city of Columbus from funds generated by the hotel/motel/short-term rental excise taxes shall be two and thirty-nine-hundredths percent (2.39%) two and eighty-two-hundredths percent (2.82%) effective January 1, 2014 July 1, 2026. The maximum amount of said tax to be allocated for the purpose of expanding cultural services for the enrichment of the community shall not exceed a rate of one and sixty-eight-hundredths percent (1.68%) in relation to the five and one-tenths percent (5.1%) combined rate effective January 1, 2014. By December of each year, recipients of funding pursuant to promoting the city and for cultural enrichment shall provide the mayor and city council a performance report of that year's activities. The maximum amount of said tax to be allocated for the purpose of providing emergency human service needs to the community shall not exceed a rate of six-tenths percent (.6%) in relation to the five and one-tenths percent (5.1%) combined rate, effective January 1, 2014, of which up to three hundred thousand dollars ($300,000.00) annually may be allocated by city council to assist social service agencies in the city with the capital costs of maintaining their facilities. The amount of tax allocated to support the production of affordable housing and create home ownership opportunities within the city of Columbus through the Affordable Housing Trust for Columbus and Franklin County shall be up to forty-three-hundredths percent (.43%) in relation to the five and one-tenths percent (5.1%) combined rate, effective January 1, 2014.
(d) The payment scheduled for each of the aforementioned allocations in Section 371.02(c) shall be determined by the city auditor, provided that the city shall disperse at least fifty (50) percent of the revenue from the three (3) percent tax levied pursuant to former Ohio Revised Code Sec. 5739.02(C)(2) (currently Ohio Revised Code Sec. 5739.09 5739.08(B)), to make contributions to convention and visitors bureaus operating within the county, annually. The payment schedule for contributions to convention and visitors bureaus operating within the county shall be determined by the city auditor and shall follow the priorities established below:
1) The first priority is for said contributions to be paid to the Franklin County Convention Facilities Authority, a duly constituted convention and visitors bureau operating within the county of Franklin, Ohio, to the extent necessary to satisfy the city's obligation under Section 3.06 of the lease agreement dated as of June 1, 1990, as amended, between the Franklin County convention facilities authority, as lessor, and the city and the county of Franklin, Ohio, as lessees.
2) The second priority is for said contributions to be made pursuant to authorization of council to convention and visitors bureaus operating within the county of Franklin, Ohio, when in the judgment and opinion of the city auditor such contributions are not required to meet the first priority. The city auditor may make contributions on a monthly basis provided no second priority contribution shall be made in a month until such time as a first priority contribution is either satisfied or deemed not required.
3) Receipts attributed to the full service convention center hotels located on High Street in Columbus, Ohio nearby the existing Columbus Convention Center shall be allocated for use as directed under Section 3.4 of the Cooperative Agreement by and between the City, the County of Franklin and the Franklin County Convention Facilities Authority beginning January 1, 2013, as supplemented, for a period of up to 30 years or the life of the bonds for the project, whichever is greater.
(e) Each recipient organization of funds pursuant to the above described allocation shall within one hundred twenty (120) days after the end of their fiscal year provide to the city auditor financial statements of the organization for such fiscal year prepared in accordance with generally accepted accounting principles, with an opinion thereon by a firm of certified public accountants.
(f) The tax imposed herein applies and is collectible at the time the lodging is furnished regardless of the time when the price is paid. The tax does not apply to lodging furnished to the state, or any of its political subdivisions, or any charitable organization for the lodging of transient indigent individuals, when such charitable organization pays the hotel or transient accommodation, including short-term rentals, for such lodging.
(g) For the purpose of the proper administration of this chapter and to prevent evasion of the tax it is presumed that all lodging furnished by hotels or short-term rentals to transient guests and short-term rental guests is subject to the tax until the contrary is established.
(h) To defray the expenses incurred in the collection and administration of the tax, the auditor may retain one-half percent (0.5%) of the collected gross revenues from the city's proportion of the tax on short-term rental guests paid to either the hosting platform or the short-term rental host.
SECTION 2. That the current section 371.02 is hereby repealed.
SECTION 3. That prior to January 1, 2027, should the Columbus City Council fail to approve, by ordinance, an agreement between the City of Columbus and the Affordable Housing Trust for Columbus and Franklin County that provides for the following: 1) Funding to the Affordable Housing Trust for Columbus and Franklin County that is at least equivalent to forty-three-hundredths percent (.43%) in relation to the five and one-tenths percent (5.1%) combined rate that the Affordable Housing Trust for Columbus and Franklin County would have been projected to have received for the period of July 1, 2026 through December 31, 2026 under the provisions of section 371.02(c) as they existed prior to these amendments and 2) that the City shall use best efforts to identify a sustainable long term revenue source for the Affordable Housing Trust then the following amendment shall go into effect on January 1, 2027:
371.02 - Imposition of tax
(a) For the purpose of providing revenue for the advancement of the cultural development of the community, for promotion and publicizing of the city of Columbus as a desirable location for conventions, trade shows and similar events to encourage the patronage and business of cultural, educational, religious, professional, sports, and other organizations to utilize the city of Columbus and its numerous facilities for such events, to support the production of affordable housing and create home ownership opportunities within the city of Columbus through the Affordable Housing Trust for Columbus and Franklin County, and for the further purpose of providing emergency human service needs to the community, all for the benefit of the citizens of the city of Columbus, an excise tax of three (3) percent is hereby levied on transactions by which lodging by a hotel or transient accommodations, including short-term rentals, is or is to be furnished to transient guests or short-term rental guests, pursuant to former Ohio Revised Code Sec. 5739.02(C)(1) (currently Ohio Revised Code Sec. 5739.08(A)) and furthermore, an additional excise tax of three (3) percent is hereby levied on transactions by which lodging by a hotel or transient accommodations, including short-term rentals, is or is to be furnished to transient guests or short-term rental guests, pursuant to former Ohio Revised Code Sec. 5739.02(C)(2) (currently Ohio Revised Code Sec. 5739.08(B)). Effective January 1, 1989, the excise tax of three (3) percent levied pursuant to former Ohio Revised Code Sec. 5739.02 (C)(1) (currently Ohio Revised Code Sec. 5739.08(A)) above shall be reduced to two and one-tenths (2.1) percent and shall be levied on transactions by which lodging by a hotel or transient accommodations is or is to be furnished to transient guests.
(b) Although the above levies are separate and distinct, for purposes of determining distribution, the combined amounts are hereinafter referred to as the "Hotel-Motel-Short-Term Rental Excise Taxes".
(c) Except as otherwise provided in this Chapter, all revenues received by the city from the hotel/motel/short-term rental excise taxes each year shall be divided for the use of promoting and publicizing the city of Columbus as a desirable location for conventions, trade shows, and similar events; for use in purchasing cultural services for the enrichment of the community; for support of the production of affordable housing and creation of home ownership opportunities in Columbus; and for emergency human service needs. Of the combined rates of five and one-tenths percent (5.1%) the amount of tax allocated for the purpose of promoting the city of Columbus from funds generated by the hotel/motel/short-term rental excise taxes shall be two and thirty-nine-hundredths percent (2.39%) two and eighty-two-hundredths percent (2.82%) effective July 1, 2026 January 1, 2027. The maximum amount of said tax to be allocated for the purpose of expanding cultural services for the enrichment of the community shall not exceed a rate of one and sixty-eight-hundredths percent (1.68%) in relation to the five and one-tenths percent (5.1%) combined rate effective January 1, 2014. By December of each year, recipients of funding pursuant to promoting the city and for cultural enrichment shall provide the mayor and city council a performance report of that year's activities. The maximum amount of said tax to be allocated for the purpose of providing emergency human service needs to the community shall not exceed a rate of six-tenths percent (.6%) in relation to the five and one-tenths percent (5.1%) combined rate, effective January 1, 2014, of which up to three hundred thousand dollars ($300,000.00) annually may be allocated by city council to assist social service agencies in the city with the capital costs of maintaining their facilities. The amount of tax allocated to support the production of affordable housing and create home ownership opportunities within the city of Columbus through the Affordable Housing Trust for Columbus and Franklin County shall be up to forty-three-hundredths percent (.43%) in relation to the five and one-tenths percent (5.1%) combined rate, effective January 1, 2027.
(d) The payment scheduled for each of the aforementioned allocations in Section 371.02(c) shall be determined by the city auditor, provided that the city shall disperse at least fifty (50) percent of the revenue from the three (3) percent tax levied pursuant to former Ohio Revised Code Sec. 5739.02(C)(2) (currently Ohio Revised Code Sec. 5739.08(B)), to make contributions to convention and visitors bureaus operating within the county, annually. The payment schedule for contributions to convention and visitors bureaus operating within the county shall be determined by the city auditor and shall follow the priorities established below:
1) The first priority is for said contributions to be paid to the Franklin County Convention Facilities Authority, a duly constituted convention and visitors bureau operating within the county of Franklin, Ohio, to the extent necessary to satisfy the city's obligation under Section 3.06 of the lease agreement dated as of June 1, 1990, as amended, between the Franklin County convention facilities authority, as lessor, and the city and the county of Franklin, Ohio, as lessees.
2) The second priority is for said contributions to be made pursuant to authorization of council to convention and visitors bureaus operating within the county of Franklin, Ohio, when in the judgment and opinion of the city auditor such contributions are not required to meet the first priority. The city auditor may make contributions on a monthly basis provided no second priority contribution shall be made in a month until such time as a first priority contribution is either satisfied or deemed not required.
3) Receipts attributed to the full service convention center hotels located on High Street in Columbus, Ohio nearby the existing Columbus Convention Center shall be allocated for use as directed under Section 3.4 of the Cooperative Agreement by and between the City, the County of Franklin and the Franklin County Convention Facilities Authority beginning January 1, 2013, as supplemented, for a period of up to 30 years or the life of the bonds for the project, whichever is greater.
(e) Each recipient organization of funds pursuant to the above described allocation shall within one hundred twenty (120) days after the end of their fiscal year provide to the city auditor financial statements of the organization for such fiscal year prepared in accordance with generally accepted accounting principles, with an opinion thereon by a firm of certified public accountants.
(f) The tax imposed herein applies and is collectible at the time the lodging is furnished regardless of the time when the price is paid. The tax does not apply to lodging furnished to the state, or any of its political subdivisions, or any charitable organization for the lodging of transient indigent individuals, when such charitable organization pays the hotel or transient accommodation, including short-term rentals, for such lodging.
(g) For the purpose of the proper administration of this chapter and to prevent evasion of the tax it is presumed that all lodging furnished by hotels or short-term rentals to transient guests and short-term rental guests is subject to the tax until the contrary is established.
(h) To defray the expenses incurred in the collection and administration of the tax, the auditor may retain one-half percent (0.5%) of the collected gross revenues from the city's proportion of the tax on short-term rental guests paid to either the hosting platform or the short-term rental host.
SECTION 4. That should the conditions of SECTION 3 be met, then the then-current version of section 371.02 will thereby be repealed.
SECTION 5. That Ordinance No. 1953-2026 is hereby repealed in its entirety.
SECTION 6. That for the reasons stated in the preamble hereto, which is hereby made a part hereof, this ordinance is hereby declared to be an emergency measure and shall take effect and be in force from and after its passage and approval by the Mayor or ten days after passage if the Mayor neither approves nor vetoes the same.