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Frequently Asked Questions about the Oregon State Lodging Tax
- What's new with the Oregon Lodging Tax?
The 2005 Oregon Legislature passed into law HB 2197 that changes the existing Oregon State Lodging Tax. It modifies the definition of "transient lodging," and expands the list of those who must pay the lodging tax.
- When will the changes take place?
January 1, 2006.
- How much is the tax?
It is 1 percent of gross lodging sales.
- Who must pay this tax?
Anyone who stays in a "dwelling unit used for temporary overnight human occupancy" for business, pleasure, or recreational purposes. This previously included overnight rental of hotels, motels, bed and breakfast establishments, RV spaces in RV parks, resorts, inns, cabins, condominiums, duplexes, and some short-term rental apartments. Beginning January 1, 2006, the expanded definition also will include:
- Vacation rental houses
- Tent spaces and yurts in private and public campgrounds.
- Any other dwelling unit, or portion of a dwelling unit, used for temporary human occupancy
- How will this tax be collected?
Every lodging provider in Oregon is responsible for collecting the tax at the time the fee for lodging is paid.
- How will the funds be used?
The state will use this revenue to promote tourism in Oregon.
- How much will this cost me?
As a lodging provider, you are required to collect this tax from your customers. You will hold this tax in trust and remit it quarterly to the Oregon Department of Revenue. If you fail to pay this tax in a timely manner, you may be assessed penalty and interest. The law allows you to withhold 5 percent of the state lodging taxes you collect to cover your costs for record keeping, reporting, and collecting the tax.
- How is this tax different from the city or county tax I'm already paying?
This tax promotes tourism statewide. City and county taxes fund a variety of local programs. Check with your local governments for more information on those programs.
- How did this tax come about?
The 2003 Oregon Legislature passed into law HB 2267 to establish a state lodging tax. Revenue generated from this tax funds Oregon Tourism Commission programs. HB 2197, passed in 2005, expanded the definition of "transient lodging," and expanded the list of those who must pay the tax.
- Is anyone exempt from the tax?
Yes, the following facilities are exempt from the Oregon State Lodging Tax:
- Health care facilities, hospitals, long-term care facilities, and residential care facilities licensed, registered, or certified by Oregon Department of Human Services.
- Drug or alcohol abuse treatment facilities and mental health treatment facilities.
- Dwelling units that provide lodging to the public for less than 30 days in a calendar year. Example: A hunting lodge that is only open for a season shorter than 30 days.
- Emergency temporary shelter funded by a government agency.
- Nonprofit youth or church camps, nonprofit conference centers, and certain qualifying nonprofit facilities.
- Lodgers who spend 30 consecutive days or more at the same facility.
- Federal employee on federal business who pays for the lodging with a credit card billed directly to the government agency.
- How do I get started?
Complete a State of Oregon Lodging Tax Registration and mail it to the address on the form. New lodging tax instructions and forms will be available online early in 2006.
- How and when do I pay the tax?
You are required to file a return with the Oregon Department of Revenue and pay the taxes quarterly, on or before the last day of April, July, October, and January. You must file a return even if you did not collect any tax for the reporting period. Tourism Commission website
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