Overview: Are Short-Term Rentals Allowed in Urbana, OH?

YES, short-term rentals are explicitly allowed in Urbana, Ohio. The City of Urbana has established a comprehensive regulatory framework that recognizes and permits short-term rental operations, including those conducted through platforms like Airbnb, VRBO, and HomeAway. The city defines lodging establishments broadly to include vacation homes, rooms in residences being rented to guests, owner-occupied residences, accessory dwelling units, and non-owner occupied residences. This regulatory clarity provides investors with a well-defined legal pathway to operate short-term rental businesses within city limits.

Urbana's approach treats short-term rentals as legitimate lodging establishments subject to the same transient lodging tax requirements as traditional hotels and motels. The city requires operators to register with the Zoning Officer/Inspector and obtain a "Transient Occupancy Registration Certificate" that must be posted conspicuously on the premises.

How to Start a Short-Term Rental Business in Urbana, OH

Starting a short-term rental business in Urbana requires following specific regulatory steps designed to ensure compliance with local tax and zoning requirements.

Step 1: Verify Zoning Compliance

Before proceeding, confirm that your property is located within Urbana city limits and zoned appropriately for lodging use. Properties outside city limits fall under different jurisdictions and tax collection procedures.

Step 2: Register Your Establishment

All lodging establishments operating within City of Urbana must register with the Zoning Officer/Inspector and obtain a "Transient Occupancy Registration Certificate." This requirement applies to both existing and new operators:

• Existing operators were required to register by September 5, 2019
• New operators must register within 30 days after commencing business

Step 3: Set Up Tax Collection and Remittance Systems

Implement systems to collect the 3% city lodging tax from guests and prepare for monthly remittance to the City of Urbana Finance Department. The tax must be stated and charged separately from rent and shown separately on all billing records.

Step 4: Establish Monthly Reporting Procedures

Create monthly reporting processes to submit the "Transient Lodging Tax Return" by the 15th day of each month for the preceding calendar month's lodging tax collections.

Required Documents, Permits, Licenses, and Guidelines

Essential Documents and Permits

Transient Occupancy Registration Certificate

• Must be obtained from the Zoning Officer/Inspector
• Required to be posted conspicuously on the premises
• Available through completion of the Transient Occupancy Registration Form

Transient Lodging Tax Return

• Monthly filing requirement due by the 15th of each month
• Must include: reporting month, business identification, gross rental revenue, exemptions claimed, tax due calculation, and operator signature with contact information

Transient Lodging Tax Certificate of Exemption

• Required for qualifying exempt stays
• Must be completed for each qualified stay and accompany filings where exemptions are listed
• Requires supporting documentation (government ID for government stays, proof of 30+ day stays)

Supporting Documentation Requirements

• Government-issued identification for tax-exempt government stays
• Proof of payment method (government check or government credit card for exempt government stays)
• Room contract or proof of stay documentation for 30+ consecutive day stays
• Business name and address information
• Contact information (email address and phone number)

Filing and Record-Keeping Guidelines

• Maintain separate records showing tax collection from rent amounts
• Preserve all lodging tax documents for four years
• Keep photocopies of exemption certificates for your records
• Make records available for inspection within ten business days upon request

Specific Regulations for Short-Term Rentals

City of Urbana Regulations

Tax Rate and Collection

• 3% transient lodging tax on all rents received by lodging establishments
• Tax must be collected from transient guests (occupancy less than 30 consecutive days)
• If operators fail to collect tax, they remain personally liable for the amount
• Tax must be stated separately from rent on all billing records

Definition of Transient Guest

• Person occupying sleeping accommodations for less than 30 consecutive days
• Non-transient guests staying 30+ consecutive days are exempt from lodging tax

Monthly Filing Requirements

• Lodging tax payments due by the 15th day of each month for preceding calendar month
• Example: January lodging tax receipts due February 15th
• Late payments incur 10% penalty plus 1% monthly interest

Exemptions from City Lodging Tax

• Rent paid by Federal Government (with proper documentation)
• Rent paid by State and Local Governments and subdivisions (with proper documentation)
• Non-transient occupancy exceeding 30 consecutive days

County-Level Regulations (Champaign County)

Champaign County Lodging Tax

• 3% county lodging tax continues to be collected by Champaign County Auditor's Office
• Separate from and in addition to the city lodging tax
• Contact Champaign County Auditor's Office at 937-484-1600 for county-specific requirements

State-Level Regulations (Ohio)

Ohio Revised Code Authority

• Ohio law permits counties to apply lodging taxes to short-term rentals under ORC Section 5739.09-094
• The state allows combined lodging taxes up to 6% maximum as permitted under Ohio Revised Code 5739.08-5739.094
• Many Ohio counties and cities already collect bed tax from short-term rentals

Compliance Framework

• Cities and townships within Champaign County may levy their own lodging taxes
• County tax collection procedures may vary from municipal requirements
• State law provides framework for local government lodging tax authority

Contact Information for Local Authorities

Zoning and Registration

Preston Carter, Zoning Official

• Department: Zoning & Compliance
• Address: 205 South Main Street, Urbana, OH 43078
• Phone: (937) 652-4322
• Email: Not explicitly provided in the content, but contact through City Hall main number

Finance Department (Tax Collection)

City of Urbana Finance Department

• Physical Location: 225 South Main Street (former 5/3 Bank building)
• Mailing Address: 205 South Main Street/PO Box 747, Urbana, OH 43078
• Hours: 8:00am-4:30pm, Monday through Friday
• Phone: (937) 652-4310
• Email: Not explicitly provided, but Finance Department contact

General City Information

City of Urbana Main Contact

• Address: 205 S Main St, Urbana, OH 43078
• Main Phone: (937) 652-4300

County-Level Contact

Champaign County Auditor's Office

• Phone: (937) 484-1600
• Note: Handles county lodging tax collection for properties in other Champaign County jurisdictions

Source Pages and Forms

Primary Sources

• Urbana Lodging Tax FAQs
• Urbana Lodging Tax Main Page

Required Forms (Available on City Website)

• Transient Occupancy Registration Form
• Transient Lodging Tax Return
• Transient Lodging Tax Certificate of Exemption

Supporting Documents

• Ordinance No. 4507-19 - City of Urbana Lodging Tax
• Urbana Zoning Map
• Property Maintenance Code Checklist

Legal Framework

• Urbana Code of Ordinances
• Champaign County Auditor's Office

This regulatory framework provides short-term rental investors with clear guidance for operating legitimate lodging establishments in Urbana, Ohio, while ensuring compliance with both municipal and county tax obligations. The city's proactive approach to recognizing and regulating short-term rentals creates a favorable environment for investment while maintaining important revenue streams for local tourism promotion and community development.