Council votes to up bed tax by 3 percent

Council approved an additional 3 percent bed tax and to establish a fund for economic development and tourism.

At a special meeting on Dec. 27, Sheffield Village Council approved legislation to impose an additional 3 percent bed tax and to establish a fund for economic development and tourism.

The tax would be imposed on hotel guests for the purpose of promoting economic development and tourism in the village, and according to Sheffield Village Mayor John D. Hunter, the additional tax based on one hotel in the village is expected to create an additional $80, 000 to $90,000 in revenue for the general fund.

Hunter said after receiving a call from Avon Mayor Bryan Jensen he learned of a time-sensitive window to enact new legislation before the end of 2017 following action by state Sen. Gayle Manning, R-North Ridgeville.

According to Hunter, Manning added an earmark to the state budget bill allowing municipalities in counties of more than 300,000 people to increase their bed tax from 3 percent to 6 percent, after the city of Avon had difficulties increasing its own bed tax.

“About a year ago Avon wanted to raise their tourism tax to 6 percent from 3 percent. We have a tax and they wanted to raise it 3 percent for economic development,” Hunter.

“The courts ruled that because of the way the legislation was written at that time that they could not raise that bed tax”

The new tax is set to go into effect in January 2018 at which point Council will move to make appointments to the Economic Development and Tourism Committee and start developing ideas on how to use the new revenue.

One idea Hunter would like to pursue is upgrading the village’s service department at 4480 Colorado Road.

“One of the things we’re looking at in economic development is to look at improving our service center. It’s over capacity and it needs to have a new service center, we already own the property between Evergreen Parkway and French Creek. And eventually in the long range plan is to have a fire station and a police station as we grow to meet our need, the mayor said.”

With the lowest taxes in Lorain County and tens of thousands of cars passing through the village on the Interstate 90, Colorado Road, Abbe Road and others Hunter said it is imperative to find ways to harness the potential of tourism in the area in providing for the people.

“It’s quite a good deal for everybody. This is teamwork. This is what it’s all about. It’s not about politics. It’s about taking care of residents. I don’t care what political party you represent,” he said. “It’s important that we all work together for the people here in Ohio. This is all about helping the people. And there’s not a better way than not taxing the people in the village.”