Cuyahoga County Lodging Tax collection and administration for hotels, motels, and temporary housing accommodations. Learn about bed tax rates, compliance, and payment requirements.
Location
Cuyahoga County, OH
Availability
Online 24/7
Service Type
Government Service
The Cuyahoga County Lodging Occupancy Tax Department administers the county's transient occupancy tax, commonly known as the bed tax or hotel tax. This tax applies to all temporary lodging accommodations within Cuyahoga County, including hotels, motels, bed and breakfasts, vacation rentals, and any other property rented for periods of less than 30 consecutive days.
The lodging occupancy tax is a tax collected from guests who stay at temporary accommodations. Unlike property taxes that are paid by property owners, the lodging tax is paid by guests and collected by lodging operators who then remit the funds to the county.
Revenue from the lodging tax supports tourism promotion, convention facilities, and economic development initiatives that benefit the hospitality industry and broader community. By funding these activities, the tax creates a cycle that attracts more visitors, supporting the hotels and other accommodations that collect the tax.
Any person or business operating a lodging facility in Cuyahoga County must register with the Lodging Tax Department and collect and remit the tax.
The lodging tax must be collected by hotels and motels of all sizes, bed and breakfast establishments, extended stay properties regardless of how long guests typically stay, short-term vacation rentals including those listed on Airbnb, VRBO, HomeAway, and similar platforms, corporate housing providers, and any other accommodation rented for temporary periods.
The key factor is the nature of the use, not the property type. If you rent space to guests for temporary stays, you're likely subject to the lodging tax requirement.
Certain stays are exempt from the lodging tax. Stays of 30 consecutive days or more are exempt from the tax (though operators must still register and report). The 30-day exemption recognizes that extended stays are more like residential use than transient lodging. Governmental entities with proper documentation and certain nonprofit organizations may also be exempt under specific circumstances.
Even when stays are exempt, operators must maintain documentation supporting the exemption and report exempt stays on their returns.
The lodging occupancy tax is calculated as a percentage of the room rate charged to guests. The rate is set by the county and may be subject to change. Current rate information is available on the Fiscal Officer's website.
The tax applies to the total room charge, which includes the base room rate, any mandatory fees charged by the operator (resort fees, cleaning fees, etc.), and additional charges for services that are part of the lodging package. Optional services that guests can choose separately (such as room service or spa treatments) are generally not subject to the lodging tax.
To calculate the tax due, multiply the taxable room charge by the current tax rate. For example, if the nightly rate is $150 and the tax rate is 5.5%, the lodging tax would be $8.25 per night. This amount is collected from the guest in addition to the room rate.
All lodging operators in Cuyahoga County must register with the Lodging Tax Department before beginning operations.
Contact the Lodging Tax Department to obtain registration forms. You'll need to provide your business name, address, and contact information, federal tax identification number or Social Security number, property address if different from business address, expected start date of operations, and estimated monthly room rentals.
Once registered, you'll receive a lodging tax account number for use on all filings, information about filing frequency and due dates, instructions for completing returns, and guidance on record-keeping requirements.
Registered operators must file returns according to their assigned schedule (monthly or quarterly based on volume), remit taxes collected by the due date, maintain records supporting all filings, update registration information when changes occur, and file returns even during periods with no rentals.
Proper filing and timely payment are essential for compliance.
Returns are due on a regular schedule determined by your filing frequency. Monthly filers typically have returns due by the 20th of the following month, while quarterly filers have different due dates. Each return must include total gross room rentals for the period, exempt rentals with documentation of exemption basis, taxable room rentals, tax collected from guests, and tax due (should match tax collected unless adjustments apply).
Payment must accompany the return. The Lodging Tax Department accepts various payment methods including check or money order, online payments through the county system, and in-person payments at the Fiscal Office.
Failure to file and pay on time results in penalties. Late payments are subject to interest charges calculated from the due date, penalty assessments as a percentage of tax due, and potential collection action for chronic non-compliance.
If you're unable to pay on time, contact the department before the due date. Payment arrangements may be possible for operators experiencing temporary hardship.
Proper records are essential for compliance and audit preparation.
Operators must maintain detailed records including daily rental logs showing each guest and room charge, guest registration cards or booking records, receipts and invoices provided to guests, exemption certificates for tax-exempt stays, bank statements and deposit records, and copies of all filed returns and payments.
Records must be kept for a minimum of three years and must be made available upon request for audit purposes. The department may request records at any time, and failure to produce adequate records can result in estimated assessments.
The Lodging Tax Department conducts regular compliance activities to ensure proper tax collection and remittance.
Approximately 169 lodging facilities in Cuyahoga County are subject to audit. Audits may be routine examinations conducted on a rotating schedule or targeted reviews based on compliance concerns. During an audit, examiners review records for accuracy, verify that calculation methods are correct, validate exemption claims with supporting documentation, and compare reported rentals to other available data.
If an audit discovers discrepancies, the operator may be liable for back taxes for unreported periods, interest on unpaid amounts from the original due date, penalties for non-compliance or negligence, and in severe cases, legal action for willful evasion.
Cooperation with auditors and good-faith efforts at compliance are viewed favorably and may affect penalty determinations.
The rise of platforms like Airbnb and VRBO has changed the lodging landscape. If you rent through these platforms, understand your obligations.
Some platforms collect and remit lodging taxes on behalf of hosts. If your platform handles tax collection, verify exactly which taxes they collect (they may collect state but not county, or vice versa). You remain responsible for any taxes the platform doesn't collect. You should still register with the county regardless of platform services and maintain your own records of rentals.
If you handle your own bookings or use platforms that don't collect taxes, you are fully responsible for collection and remittance. Many hosts underestimate their tax obligations and face compliance problems later.
The Lodging Occupancy Tax Office is located in the Cuyahoga County Fiscal Office, Third Floor. The office phone number is (216) 698-2540. Staff can assist with registration questions, current tax rate information, return filing assistance, audit inquiries, and general compliance questions.
The Fiscal Officer's website provides current tax rates, registration forms and return forms, filing instructions, regulatory code information, and frequently asked questions.
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