TRANSIENT OCCUPANCY TAX

Codified Ordinances of Cleveland pt. ONE, tit. XVII, ch. 193

in effect

Codified Ordinances of Cleveland § 193.01 Intent of Tax

§ 193.01 Intent of Tax It is the intent of the City to levy the excise tax of three percent (3%) on transactions by which lodging is or is to be furnished by a hotel or a short-term rental to transient guests as referred to and authorized by RC 5739.08. Accordingly, this chapter shall be construed to effectuate that purpose and so as to be consistent with any requirement of law, compliance with which is a prerequisite to the validity of the tax intended to be levied hereby. (Ord. No. 561-2026. Passed 6-1-26, eff. 7-1-26)

Codified Ordinances of Cleveland § 193.02 Definitions

§ 193.02 Definitions As used in this chapter: (a) "Administrator" means the Commissioner of Assessments and Licenses or his or her authorized representative. (b) “Booking agent” means any person or entity that facilitates reservations or collects payment for hotel or short-term rental accommodations on behalf of or for a vendor, through a website, mobile application, or by other similar means. Merely publishing an advertisement for accommodations does not make the publisher a booking agent. (c) "Hotel" means every establishment kept, used, maintained, advertised, or held out to the public to be a place where lodging is offered to guests in one (1) or more rooms, regardless of use of keyed entry, whether such rooms are in one (1) or several structures, and whether the rooms are located in different structures or on different parcels of land if the structures are not identified in advertisements of the accommodations as distinct establishments. (d) “Transaction price” means the total amount of consideration, including money or any other value, paid, or to be paid, or given by, or on behalf of, a transient guest to a hotel, short-term rental, or booking agent in exchange for lodging. The transaction price is the amount advertised or published to the public inclusive of any fees built into the advertised or published price; however, service fees or booking fees, if separately stated, shall not be included in the transaction price. (e) “Transient guest” or “transient guests” means a person or persons occupying a room or rooms, or a short-term rental dwelling for lodging for less than thirty (30) consecutive days. (f) “Vendor” means the person who is the owner or operator of the hotel or short-term rental and who furnishes the lodging. (g) “Short-term rental” means the temporary rental for compensation of a dwelling unit by the owner, operator, or through a booking agent, for the accommodation of transient guests where such accommodation to any transient guest is for not more than thirty (30) consecutive days. (Ord. No. 561-2026. Passed 6-1-26, eff. 7-1-26)

Codified Ordinances of Cleveland § 193.03 Purpose, Rate and Application of Tax

§ 193.03 Purpose, Rate and Application of Tax (a) There is hereby levied an excise tax of three percent (3%) on transactions by which lodging by a hotel or short-term rental is, or is to be, furnished to transient guests. (b) The excise tax levied under this chapter shall provide revenue for the purposes of general municipal operations, procurement of fixed assets or permanent improvements, payment of debt charges, the elimination of deficits in City funds and for all other lawful purposes. To carry out such purposes, the receipts of the tax levied under this chapter shall be deposited to the credit of the General Fund. (c) The tax, which shall be known as the transient occupancy tax, applies and is collectible at the time the lodging is furnished, regardless of the time when the price is paid. The tax shall not apply to transactions by which lodging is furnished to: (1) the Federal government, the State or any of its political subdivisions; or (2) a person maintaining occupancy for a period of thirty (30) or more consecutive days; provided, however, that except in the case of employees of the same employer, no occupancy may be used in combination with the occupancy of another, regardless of the source of payment, to exempt a transaction under this division. (d) For the purpose of the proper administration of this chapter and to prevent the evasion of the tax, it shall be presumed that all lodging furnished by hotels and short-term rentals in the City to transient guests is subject to the tax until the contrary is established. (Ord. No. 561-2026. Passed 6-1-26, eff. 7-1-26)

Codified Ordinances of Cleveland § 193.04 Transient Guest to Pay the Tax

§ 193.04 Transient Guest to Pay the Tax (a) The transient occupancy tax shall be paid by the transient guest to the vendor unless division (b) of this section applies. Each vendor shall collect from the transient guest the full and exact amount of the tax payable on the taxable price for each taxable lodging. The tax required to be collected under this chapter shall be deemed to be held in trust by the vendor or the City until paid to the Administrator, as provided in Section 193.07 of this chapter. If for any reason the tax due is not paid to the vendor, the Administrator may require the transient guest to pay such tax directly to the Administrator. (b) A booking agent collecting for a vendor may collect and remit the transient occupancy tax, and the vendor shall not be responsible for collecting the transient occupancy tax on any transaction for which the vendor has received confirmation that the booking agent has collected and remitted the tax. (c) No exemption shall be granted except upon a claim therefor made at the time the lodging is furnished and, under penalty of perjury, upon a form and in the manner prescribed by the Administrator. (Ord. No. 30-16. Passed 6-6-16, eff. 7-1-16)

Codified Ordinances of Cleveland § 193.05 Records Inspection and Preservation

§ 193.05 Records Inspection and Preservation Each vendor and booking agent shall maintain complete and accurate records of lodging furnished, together with a record of the tax collected thereon. Such records shall be open and accessible to the inspection of the Administrator within the City within fifteen (15) days upon notification in writing to the vendor or booking agent and shall be preserved for a period of three (3) years, unless the Administrator in writing consents to their destruction within that period, or by order requires that they be kept longer. (Ord. No. 30-16. Passed 6-6-16, eff. 7-1-16)

Codified Ordinances of Cleveland § 193.06 Tax to be Separately Stated and Charged

§ 193.06 Tax to be Separately Stated and Charged (a) The vendor or booking agent collecting for a vendor shall state and charge the transient occupancy tax to the transient guest separately from the charge for the lodging and on any record thereof, at the time when the occupancy is arranged or contracted and charged for, and upon every evidence of occupancy or any bill or statement or charge made for occupancy issued or delivered by the vendor. (b) No vendor or booking agent shall advertise or state in any manner, whether directly or indirectly, that the tax or any part thereof will be assumed or absorbed by the vendor or booking agent, or that the tax will not be added to the amount charged for the lodging, or that, if added, any part will be refunded except in the manner provided in this chapter. (Ord. No. 30-16. Passed 6-6-16, eff. 7-1-16)

Codified Ordinances of Cleveland § 193.07 Regulations for Filing Returns

§ 193.07 Regulations for Filing Returns (a) Each vendor or booking agent collecting for a vendor shall on or before the last day of the month make and file a return for the preceding month, on forms prescribed by the Administrator, showing the receipts from furnishing lodging, the amount of tax due from the vendor or booking agent collecting for a vendor to the City for the period covered by the return, and such other information as the Administrator deems necessary for the proper administration of this chapter. All returns shall be signed by the vendor, its authorized agent, or booking agent collecting for a vendor. The Administrator may extend the time for making and filing returns. Returns shall be filed by delivering or mailing the same to the Administrator together with payment of the full amount of tax shown to be due thereon. (b) The Administrator may authorize vendors or booking agents collecting for vendors whose tax liabilities are not such as to merit monthly returns, as determined by the Administrator upon the basis of administrative costs of the City, to make and file returns at less frequent intervals. Such authorization shall be in writing and shall indicate the intervals at which returns are to be filed. (c) Each vendor or booking agent collecting for a vendor shall file all claims for exemption from tax filed by the transient guests with the vendor during the reporting period with the return. (d) The Administrator shall treat all returns and payments submitted by vendors and booking agents collecting for vendors as confidential and shall not release them except upon order of a court of competent jurisdiction or to an officer or agent of the United States, the State, the County, the City, for official use only, or except as required by law. (e) The Administrator, if he or she deems it necessary in order to insure the payment of the tax imposed by this chapter, may require returns and payments to be made and filed for periods longer or shorter than a month. (Ord. No. 30-16. Passed 6-6-16, eff. 7-1-16)

Codified Ordinances of Cleveland § 193.08 Refunds

§ 193.08 Refunds The Administrator shall refund or grant credits to vendors or booking agents collecting for vendors for the amount of tax paid illegally or erroneously or paid on any illegal or erroneous assessment where the vendor or booking agent has not reimbursed itself from the transient guest. As between a vendor and a booking agent, the request for refund shall be made by the party that filed the return containing the illegal or erroneous assessment. A transient guest may obtain a refund or credit for the amount of taxes paid illegally or erroneously, but only when the tax was paid by the transient guest directly to the Administrator. No refund shall be paid unless the claimant establishes a right thereto by written records showing entitlement thereto and makes a claim filed within three (3) years of the date of payment in the manner and on forms prescribed and furnished by the Administrator, and stating under penalty of perjury, the specific grounds upon which the claim is founded. (Ord. No. 30-16. Passed 6-6-16, eff. 7-1-16)

Codified Ordinances of Cleveland § 193.09 Failure to Collect and Report Tax; Determination by Administrator

§ 193.09 Failure to Collect and Report Tax; Determination by Administrator (a) If any vendor fails or refuses to collect the transient occupancy tax or to file a return or remit the tax or any portion thereof, as required by this chapter, and the vendor has not received confirmation that a booking agent has collected and remitted the tax, the Administrator shall proceed in such manner as he or she may deem best to obtain information on which to base an assessment of the tax due. When the Administrator has obtained such information as he or she is able, he or she shall proceed to determine and assess against such vendor the tax and penalty provided for in this chapter. (b) In case such determination is made, the Administrator shall serve notice upon the vendor of the amount so assessed, either by personal service or by registered or certified mail. Such vendor may, within ten (10) days after the serving or mailing of such notice, apply in writing to the Administrator for a hearing on the correctness of that amount assessed. If the vendor does not apply within the time prescribed, the tax and penalty determined by the Administrator shall become final and conclusive and immediately due and payable. If the vendor makes timely application, the Administrator shall give the vendor written notice not less than five (5) days in advance in the manner prescribed in this section, to show cause at a time and place fixed in the notice why the amount specified therein should not be fixed for such tax and penalty. At any such hearing, the vendor may appear and offer evidence why such specified tax and penalty should not be so fixed. (c) After such hearing, the Administrator shall determine the proper amount of tax due and shall thereafter give written notice to the vendor in the manner prescribed in this section, of such determination and the amount of such tax and penalty. The amount determined to be due shall be payable after fifteen (15) days. (Ord. No. 30-16. Passed 6-6-16, eff. 7-1-16)

Codified Ordinances of Cleveland § 193.10 Appeals

§ 193.10 Appeals Appeals from any ruling or determination of the Administrator with respect to the amount of such tax and penalty shall be made as provided in Charter Section 76-6 and in conformity with ordinances enacted pursuant thereto. (Ord. No. 252-A-83. Passed 6-15-83, eff. 6-16-83)

Codified Ordinances of Cleveland § 193.11 Actions to Collect

§ 193.11 Actions to Collect Any tax required to be paid by a transient guest under the provisions of this chapter shall be deemed a debt owed by the transient guest to the City. Any such tax collected by a vendor or a booking agent collecting for a vendor and not paid to the City shall be deemed a debt owed by the vendor or booking agent to the City. Any person owing money to the City under the provisions of this chapter shall be liable to an action brought in the name of the City for the recovery of such an amount. (Ord. No. 30-16. Passed 6-6-16, eff. 7-1-16)

Codified Ordinances of Cleveland § 193.12 Interest on Unpaid Tax

§ 193.12 Interest on Unpaid Tax The tax imposed and collected or required to be collected under the provisions of this chapter and remaining unpaid to the City after the tax becomes due shall bear interest at the rate of one and one-half percent (1.5%) per month or fraction thereof. (Ord. No. 252-A-83. Passed 6-15-83, eff. 6-16-83)

Codified Ordinances of Cleveland § 193.13 Penalties on Unpaid Tax

§ 193.13 Penalties on Unpaid Tax In addition to interest as provided in Section 193.12 hereof, penalties based on the unpaid tax are hereby imposed as follows: (a) Any vendor or booking agent collecting for a vendor who fails to remit any tax imposed by this chapter within thirty (30) days after the date required shall pay, in addition to the tax, a penalty equal to ten percent (10%) of the amount of the tax; (b) Any vendor or booking agent collecting for a vendor who fails to remit any tax imposed by this chapter within sixty (60) days after the date required shall pay, in addition to the tax, a penalty equal to fifteen percent (15%) of the amount of the tax; (c) Any vendor or booking agent collecting for a vendor who fails to remit any tax imposed by this chapter within ninety (90) days required or upon a second delinquency shall pay, in addition to the tax, a penalty equal to twenty percent (20%) of the amount of the tax; (d) Any vendor or booking agent collecting for a vendor who fails to remit any tax imposed by this chapter within one hundred twenty (120) days or more or upon a third or later delinquency shall pay, in addition to the tax, a penalty equal to twenty-five percent (25%) of the amount of the tax. (Ord. No. 30-16. Passed 6-6-16, eff. 7-1-16)

Codified Ordinances of Cleveland § 193.14 Rules and Regulations

§ 193.14 Rules and Regulations The Administrator shall have the power to adopt rules and regulations not inconsistent with the terms of this chapter for carrying out and enforcing the payment, collection and remittance of the transient occupancy tax. A copy of such rules and regulations shall be published in the City Record at least once before they shall become effective. Copies shall be printed and made available in the office of the Administrator. (Ord. No. 252-A-83. Passed 6-15-83, eff. 6-16-83)

Codified Ordinances of Cleveland § 193.99 Penalty

§ 193.99 Penalty (a) Any booking agent or vendor who fails to file any return or report required under this chapter shall be subject to a maximum fine of two thousand dollars ($2,000.00) per occurrence. A separate offense shall be deemed to occur on the first day of each month the failure to file continues. (b) Whoever violates any other provision of this chapter shall be fined not more than five hundred dollars ($500.00). (Ord. No. 30-16. Passed 6-6-16, eff. 7-1-16)

Codified Ordinances of Cleveland § 193.121 Booking Agents

§ 193.121 Booking Agents (a) Any booking agent, that facilitates transactions for one (1) or more hotels or one (1) or more short-term rentals in the City and that does not collect or remit the tax on behalf of all the vendors of such hotels or short-term rentals, shall provide the City quarterly within thirty (30) days of the end of each calendar quarter a transaction report. The transaction report shall consist of all listings by the vendors during the preceding calendar quarter, including, but not limited to, the dates of occupancy for each lodging and the amount paid for each completed transaction, if any. (b) Any booking agent that lists one (1) or more hotels or one (1) or more short-term rentals in the City shall: (1) at the time any vendor first lists a hotel or short-term rental with it, notify the vendor of the vendor’s tax and license obligations to the City; and (2) annually provide all vendors of one (1) or more hotels or one (1) or more short-term rentals with a reminder of their tax and license obligations to the City. In both cases, the booking agent shall use language provided or approved by the Administrator. (Ord. No. 561-2026. Passed 6-1-26, eff. 7-1-26)

Source: City of Cleveland, Ohio, Codified Ordinances and City Charter (American Legal Publishing, codelibrary.amlegal.com)URL: https://codelibrary.amlegal.com/codes/cleveland/latest/cleveland_oh/0-0-0-7747Fetched: 11/1/2026