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

Yes—short-term rentals are allowed in West Union, Ohio. The provided materials contain no city‑wide ban or licensing requirement specific to short‑term rentals, and the Village’s municipal income tax ordinance explicitly treats the rental of real estate as a business activity subject to local income tax. Therefore, operating a short‑term rental is permitted in West Union and is treated like any other business for income‑tax purposes. Investors should still comply with all applicable state and county requirements (sales and lodging taxes, building and safety rules, and any HOA/covenants). If you proceed, treat the business like any other rental operation that charges guests for stays shorter than 30 days.

Sources

• Village of West Union Income Tax Ordinance 2015‑6: “rental of real estate” is business activity and “net profits” are taxable. (See .041(7).)
• Journal‑News article (May 13, 2025) discussing proposed state expansion of lodging taxes to short‑term rentals and limits on local bans; indicates no current statewide prohibition. (See HB 161 context.)

How to Start a Short‑Term Rental Business in West Union

Because West Union does not publish a city‑specific STR licensing or zoning framework in the provided documents, treat your STR as a regular rental business and complete the following:

1. Validate local compliance

• Confirm the property’s zoning and any neighborhood covenants allow rental to transient guests.
• Align with fire, building, and health standards for your occupancy type; if you convert a residence to a multi‑unit setup, consult the Adams County Building Department and fire safety officials for requirements.
• If your STR has 5 or more rooms or is otherwise configured like a hotel/motel, clarify licensing needs with the Ohio Department of Commerce ( Lodging ).

2. Register your business

• Elect a business structure (LLC, corporation, or sole proprietorship).
• Register for a municipal “Net Profits” tax account with the Village of West Union (Tax Administrator); you will file returns on business net profits and may need to make estimated payments.
• If required for your sales tax status or due to platform reporting, obtain an Ohio Vendor’s License (Sales Tax) from the Ohio Department of Taxation for the Village of West Union; you will collect state sales tax on lodging and any applicable local lodging tax once you know the local rates and rules.

3. Operational setup

• Choose a booking platform (Airbnb, VRBO, direct website) and confirm your tax‑collection and filing workflow.
• Publish compliant listings and house rules; maintain occupancy and safety documentation.
• Set up records to compute and remit state and local taxes, and to compute net profits subject to municipal income tax.

4. Ongoing administration

• File municipal Net Profits returns per West Union’s rules (see ordinance) and make estimated payments as required.
• File sales and lodging tax returns per state schedules; the cadence depends on your tax liability.
• Retain guest and financial records for the applicable statutory periods.

Required Documents, Permits, Licenses, and Guidelines

The following items are indicated or implied by the provided sources and typical Ohio requirements:

• Business registration with the Village of West Union for municipal income tax purposes (Net Profits tax). See West Union Income Tax Ordinance 2015‑6, Sections IV (Income Subject to Tax for Individuals/Businesses) and X (Filing and Payment Procedures).
• Ohio Vendor’s License (Sales Tax) if you are required to collect/remit Ohio sales tax; obtain from the Ohio Department of Taxation (behindOhio Business Gateway).
• Compliance with Ohio’s transient lodging tax rules: when you collect lodging taxes, file and remit them per Ohio Department of Taxation instructions.
• Proof of property compliance (fire, building, health) as applicable; if you operate a facility similar to a hotel/motel or with 5+ rooms, consult the Ohio Department of Commerce (Lodging) for licensing criteria.
• Evidence of municipal income tax filings and net‑profit computations, including any apportionment if you operate in multiple municipalities (apportionment formula in .062 of the ordinance).
• Hosting and listing compliance (e.g., indoor safety equipment, posted rules, guest information) as applicable under local health and safety standards.

Source

• West Union Income Tax Ordinance 2015‑6: rental property is taxable business activity (.041(7)).

Specific Regulations Affecting STRs in West Union, Adams County, and Ohio

City (West Union)

• No city‑specific STR ban or licensing ordinance appears in the provided materials. West Union’s Income Tax Ordinance governs how your rental business is taxed (municipal net profits tax).
• The ordinance provides definitions, calculation of municipal taxable income, and filing/payment procedures (e.g., quarterly or monthly withholding remittance; annual Net Profits return).

County (Adams County)

• No county‑specific STR ordinance appears in the provided materials. If building, health, or fire requirements apply to your occupancy or layout, obtain details from the Adams County Building Department and your local fire authority.

State (Ohio)

• Proposed legislation (HB 161 and companion bills discussed in the Journal‑News article) would standardize taxation of short‑term rentals and restrict local governments from banning STRs or imposing owner‑occupancy requirements. As of the source date, the bills were under consideration and had not been enacted. Investors should monitor legislative status if these provisions could affect your operation.
• Lodging taxes: Ohio applies state sales tax to lodging and has adopted local lodging taxes in many jurisdictions. Short‑term rentals typically must collect and remit these taxes where applicable. Confirm current local lodging tax requirements with the Ohio Department of Taxation and Adams County officials.
• Sales and use tax: You may need an Ohio Vendor’s License and must collect/remit state sales tax on lodging and related charges; consult Ohio Department of Taxation guidance.
• Commercial activity tax (CAT): If your business has annual gross receipts over $150,000, you may owe the CAT in addition to income tax. See Ohio Department of Taxation guidance on CAT thresholds and registration.

Sources

• Journal‑News article on HB 161 and related STR regulation proposals (May 13, 2025).
• West Union Income Tax Ordinance 2015‑6 for municipal tax framework.

Contact Information for Local Authority in Charge of STRs

Because the provided documents do not name a dedicated STR authority in West Union, start with the Village Tax Administrator and the village’s main contact. If you discover your STR has hotel/motel characteristics (5+ rooms or similar), contact the Ohio Department of Commerce for licensing questions.

• Village of West Union (Tax Administrator/Municipal Income Tax):

  • Phone: Contact village hall at 937‑544‑2231
  • Email: Contact village hall (call to obtain current email for the Tax Administrator)
  • Website: westunionoh.net
  • Municipal Income Tax materials: westunionoh.net (see “Income Tax” links; ordinance PDF available on the site)

• Ohio Department of Commerce (Lodging/Ohio Hotel & Motel Licensing):

  • Phone: 614‑466‑3777
  • Website: com.ohio.gov/divisions-and-programs/industrial-compliance/lodging

• Ohio Department of Taxation:

  • Phone: 888‑722‑8829
  • Website: tax.ohio.gov

• Adams County (general government, land use, and building):

  • Adams County Government: adamscountygov.com
  • Adams County Courthouse: 937‑544‑2639 (call routing to relevant offices)

Notes

• If your property is governed by HOA or restrictive covenants, consult your association’s documents and leadership for rules that could restrict transient rentals.

Source Pages

• Journal‑News: “A short‑term rentals tax in Ohio could be coming” (May 13, 2025) — journal‑news.com/news/a-short-term-rentals-tax-in-ohio-could-be-coming-leaders-project-large-revenues-at-state-county-and-local-levels/DI57XNXJVBGVPPOVA3BPFJAGYQ/
• Village of West Union Income Tax Ordinance 2015‑6 (PDF) — westunionoh.net/sites/default/files/pages/2015-6_wu_incometax_ordinance_rules_and_regulations.pdf

Investor takeaway

• West Union allows STRs; treat them as taxable rental businesses and complete municipal income tax registration, sales/lodging tax compliance, and any building/fire/health approvals as applicable. Monitor Ohio legislative developments that could alter tax or local regulatory latitude.