Lodging tax applies to everyone in Ottawa County, only hotels in Erie County

SANDUSKY — Erie County and Ottawa County both levy a lodgings tax on visitors, using the taxes to promote tourism in the area in various ways.But the two counties take sharply different approaches to their tax policies.Ottawa County taxes everyone equally, levying the same tax whether a visitor stays in a hotel or someone's private home or condo. Erie County, however, taxes only traditional hotels, choosing not to collect a tax on the more than 200 residences in the Sandusky area that are currently listed on Airbnb, the popular site used by homeowners renting a spare room or vacant house.Ottawa County levies a 3 percent lodging tax, collecting $3 on a $100 room, said Larry Fletcher. The Ottawa County Commissioners turn almost all of that money over to Lake Erie Shores and Islands, keeping only a small amount of money for administrative costs, he said.Erie County levies a 4 percent tax. It provides half of that to Lake Erie Shores and Islands, devotes a quarter of the revenues to the new Sports Force athletic complex and is using the remainder for future projects, Fletcher said.The Ottawa County tax brought in about $976,000 in 2016, said Larry Hartlaub, the Ottawa County auditor. The Erie County tax brought in about $5.5 million in 2016, said Rick Jeffrey, Erie County's auditor.The two counties also differ on who has to pay the tax.Ottawa County levies the tax on everyone who rents a room for less than 30 days, whether it's a spare room rented using Airbnb or a regular hotel room. Erie County's tax only applies to businesses that have at least five rooms to rent, essentially applying the tax only to hotels, Fletcher said.Renting out your place has been a practice in Ottawa County for a long time, even before the advent of Internet sites such as Airbnb and HomeAway, Hartlaub said.But there's evidence renting out your home has caught on in Sandusky, too.A search Friday afternoon at Airbnb's website for "Sandusky, Ohio," turned up 264 rentals available in or near the city for single guests, while a search for Port Clinton, Ohio, turned up 38 rentals.Hartlaub said that his office does try to make sure everyone pays the tax."We do do some searching on the websites," he said. "A lot of times, neighbors call."The auditor's office also works with real estate agents and title companies, letting them now that a tax is required on all rentals, Hartlaub said.People who list rooms for rent who aren't paying the tax get reminder letters, Hartlaub said."No one's actively trying to avoid it," he said. "A lot of people just don't know."Reach reporter Tom Jackson at jackson@sanduskyregister.com and follow him on Twitter @jacksontom. Holiday Inn Express and Suites on Cedar Point Road in Sandusky. A lodging tax on hotel rooms in the area help pays for tourism promotion for Erie and Ottawa counties.