The city of Cleveland may soon update its laws to apply the three-percent hotel tax to short-term rentals like those found on Airbnb.com, city spokesperson Dan Ball told the Northeast Ohio Media Group.
Cleveland would have to redefine what is classified as a “hotel” in order to apply the tax to short-term rentals that will become increasingly more expensive and rare as the Republican National Convention approaches.
In an email to the Northeast Ohio Media Group, Ball said Cleveland will “assess whether or not application of the excise tax to those hotel lodgings accommodating less than five guests has merit here in Cleveland."
The Republican National Convention will bring tens of thousands of visitors and potential customers to Cleveland for homeowners seeking to generate income from their homes. If Cleveland makes these changes, the three-percent tax would fall on the homeowners. Again, it’s best to consult with a tax adviser when considering renting out your home during the convention.
This change to the city’s hotel tax scope would mimic legislation recently passed in Philadelphia as this city prepares for a visit from Pope Francis and the Democratic National Convention.
City officials have little over a year to make a decision, so stay tuned here as more information becomes available.