Ohio Just Changed the Rules: Erie County Can Now Unlock Millions in Hotel Tax Money

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September 8, 2026 9:49 PM

In 2025, Erie County is anticipated to generate $8.5 million from its lodging tax. HB 96 becomes law on September 30, 2025, broadening the use of lodging tax revenue so that qualifying counties may use the revenue to fund public safety, infrastructure, economic development, and other related tourism projects. Because Erie County has a population under 100,000 residents and passed the qualifying threshold of $500,000 of annual lodging tax receipts, the county, for 2025, is authorized to use the $8.5 million in lodging tax revenue. Public investments will be controlled by EPIC, a new, reorganized version of the visitors bureau. Erie County will be able to use the tax revenue, but cannot use the entire $8.5 million in lodging tax revenue because it is obligated to fulfill the Cedar Point Sports Park bond. Of the $8.5 million, $2.1 million was received in 2025 for the Cedar Point Sports Park bond, and approximately $2.7 million is required for debt service. The remaining obligation will continue to be paid until December 2038. Although tourism related projects are limited, the flexibility of the new law will allow Erie County to make public investments.

Ohio Changes Lodging-Tax Rules

A substantial change has been introduced to Ohio’s lodging-tax framework through House Bill 96.

Previously, qualifying lodging-tax collections were primarily restricted to tourism sales, marketing, promotion and related convention-and-visitors-bureau expenses.

The revised law permits qualifying counties to direct portions of lodging-tax revenue toward public safety services, infrastructure projects and economic-development initiatives, provided a connection with tourism is maintained.

The change is particularly significant for destinations where large visitor volumes create costs extending beyond conventional tourism advertising.

Why Erie County Qualifies

Erie County meets the requirements established under the revised rules.

The county has fewer than 100,000 residents and receives more than $500,000 annually in qualifying lodging-tax revenue.

A 4% lodging tax is collected from hotels, motels and other qualifying accommodation establishments. The tax also applies to certain short-term rental activity, including accommodation offered through platforms such as Airbnb and Vrbo.

County lodging-tax collections reached approximately $8.47 million in 2025, with an increase of roughly 2.6% from 2024 being reported.

EPIC Creates New Oversight Structure

A restructured visitors bureau known as EPIC has been established to manage eligible lodging-tax spending.

Erie County has been designated as EPIC’s funding agent through a memorandum of understanding. Spending controls have been incorporated into the arrangement so that newly authorised expenditures remain connected to tourism.

The framework therefore does not convert hotel-tax revenue into unrestricted county funding.

The first two percentage points of the lodging tax continue to support destination marketing through the Erie County Visitors and Convention Bureau.

The third and fourth percentage points continue to support the Cedar Point Sports Center under the established funding arrangement.

Cedar Point Debt Limits Available Funds

A significant portion of the lodging-tax structure remains committed to Cedar Point Sports Park debt.

Erie County issued $17.41 million in revenue bonds in 2016 for Phase I of the sports park and another $20 million in 2018 for Phase II.

Revenue from the third percentage point of the lodging tax was pledged toward repayment of those bonds.

In 2025, approximately $2.1 million in hotel-tax receipts was associated with the bond pledge. Principal and interest payments during the same year reached approximately $2.7 million.

Remaining principal and interest payments were scheduled through December 2038, with approximately $35.1 million remaining at the end of 2025.

Consequently, the headline $8.47 million collection figure does not represent money freely available for new projects.

Tourism Connection Remains Mandatory

The new spending authority has important limitations.

Projects involving public safety can qualify when they address visitor-related demands. Infrastructure initiatives can also qualify when they support tourism activity, while economic-development projects must similarly demonstrate a tourism connection.

This requirement keeps the revised system linked to the industry generating the tax.

For Erie County, the model could allow tourism-generated revenue to support roads, services, facilities and other investments that contribute to the visitor economy while also benefiting the wider community.

Earlier Proposal Faced Opposition

The expanded authority followed considerable debate over the future use of lodging-tax revenue.

Major regional tourism stakeholders, including Cedar Point, Kalahari Resorts and the Sandusky City Commission, opposed an earlier proposal that would have permitted county commissioners to redirect up to two-thirds of local lodging-tax revenue.

The disagreement reflected concerns about preserving funding for destination marketing.

The final framework provides additional spending flexibility while retaining existing allocations, debt obligations and tourism-related restrictions.

Regional Tourism Economy Carries Major Weight

The importance of tourism revenue can be seen across the wider Erie and Ottawa county economy.

Tourism generated approximately $3.1 billion in total tourism sales in 2023, according to the Tourism Economics study cited in the supplied material.

Visitors directly spent approximately $1.91 billion, while tourism supported roughly 14,000 jobs across the two counties.

Lodging represented approximately 13% of direct tourism spending.

The economic scale helps explain why the allocation of lodging-tax revenue has become an important regional policy issue.

Tourism Leadership Is Also Being Reorganised

The lodging-tax changes are taking place alongside a broader restructuring of regional tourism organisations.

Management agreements involving the Erie and Ottawa county visitors bureaus and the Greater Sandusky Partnership were approved in August 2026.

Under the emerging structure, Greater Sandusky Partnership CEO Eric Wobser was positioned to lead GSP and Shores & Islands Ohio, while outgoing CEO Larry Fletcher was expected to transition into a strategic alignment role.

A more integrated approach to destination marketing and tourism development is consequently being established across the region.

Category-Wise Summary

New Flexibility Without a Blank Cheque

The revised Ohio lodging-tax rules have created a new financial framework for Erie County, allowing tourism-generated revenue to support a broader range of projects.

The change is important because the costs created by tourism can extend beyond advertising. Heavy visitor traffic can place additional demands on public safety, infrastructure and local economic systems.

However, the new authority does not provide unrestricted access to the county’s hotel-tax collections. Existing allocations remain in place, while bond obligations continue to consume a portion of the revenue.

The EPIC structure is therefore being positioned as a mechanism through which remaining eligible funds can be directed toward projects that strengthen the tourism ecosystem.

The distinction between total collections and available funds remains crucial. The approximately $8.47 million collected in 2025 represents overall lodging-tax revenue, not a single pool available for immediate redevelopment.

As Sandusky and the wider Erie County region seek continued tourism growth, the new law provides greater flexibility while maintaining a central condition: lodging-tax revenue must continue to serve tourism-related purposes.