Businesses

Tax responsibility

Transient lodging providers and transient lodging intermediaries must collect and remit the tax. Under the law, whoever collects payment for occupancy of the transient lodging ("transient lodging tax collector") is responsible for collecting and remitting the tax.

    A person who furnishes temporary or short-term lodging is considered a transient lodging provider. A transient lodging intermediary is a person other than a provider who facilitates the retail sale of transient lodging and:

    • Charges for occupancy of the transient lodging; or
    • Collects consideration charge​d for occupancy of the transient lodging; or 
    • Receives a fee or commission and requires the transient lodging provider to use a specified third party to collect the consideration charged for occupancy of the transient lodging.

    Transient lodging intermediaries include, but are not limited to:

    • Online travel companies.
    • Travel agents.
    • Tour outfitter companies.
    Transient lodging includes:
    • Hotels and motels. 
    • Bed and breakfast facilities. 
    • Spaces used for RV parking or erecting a tent during periods of human occupancy. 
    • Resorts and inns. 
    • Lodges and guest ranches. 
    • Cabins. 
    • Condominiums. 
    • Apartments and duplexes. 
    • Houses.
    • Any other dwelling unit, or portion of a dwelling unit, used for temporary stays.

    Returns and p​ayments

    If you collect payment from lodging customers for stays fewer than 30 consecutive nights, you're responsible for collecting and remitting the tax and filing a return quarterly. Read the filing instructions to see what you'll need to file and pay online.

    The tax rate is based on the date of payment:

    Payment date
    Tax rate
    Before July 1, 2016
    1%
    On or after July 1, 2016
    1.8%
    On or after July 1, 2020
    1.5%

    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.

    Returns and payments are due on or before the last day of the month following the end of each calendar quarter. You must file a return even if you don’t collect any taxes during the reporting period.​

    ​Quarterly filing due dates
    Quarter Quarter ending date
    Due date
    1st — Jan-Feb-Mar March 31 April 30
    2nd — Apr-May-Jun June 30 July 31
    3rd — Jul-Aug-Sep September 30 October 31
    4th — Oct-Nov-Dec December 31
    January 31
    If due date is a weekend or holiday, the return is due the next business day. ​
    There is a 5 percent penalty if you don't pay by the due date. A 20 percent penalty is charged if you don't file a return within 30 days of the due date. Interest is added to any unpaid tax and calculated from the time the tax becomes due. Additional penalties may be charged if you don't file a return within 60 days of the due date. 

    Additional service fees ​and charges

    If a separate fee is charged for a service and the service is not optional, or if the value of a service is included in the standard lodging rate, the amount allocated to the service is subject to the state lodging tax. Examples of fees for non-optional services include, but are not limited to: cleaning service fees, pet charges, fee for providing an extra bed, service fees and processing fees. Examples of services that are included in the standard lodging rate include, but are not limited to: free breakfast and free transportation to the airport. 

    If a separate fee is charged for a service and the service is optional, that fee is not subject to the state lodging tax. Examples of optional services include, but are not limited to: pay-per-view movies, room service, use of an honor bar or restaurant meals charged to the room. 

    If the provider offers a lodging package that includes something that is not associated with the actual lodging or is provided by a third party, only the regular lodging rate that would have been charged absent the package item is subject to the state lodging tax. Examples of lodging packages include, but are not limited to: a package consisting of a night of lodging and a round of golf for two, or a romance package that includes a night of lodging, a bottle of wine and dinner at a local restaurant. 

    Exemptio​ns 

    Lodging facilities exempt from the state lodging tax include:
    • Health care facilities, hospitals, long-term care facilities, and residential care facilities that are licensed, registered, or certified by the Oregon Department of Human Services. 
    • Drug or alcohol abuse treatment facilities and mental health treatment facilities. 
    • Facilities with fewer than 30 days of rentals in a calendar year. 
    • Emergency temporary shelter funded by a government agency. 
    • Nonprofit youth or church camps, nonprofit conference centers, and qualifying nonprofit facilities.
    Lodgers exempt from the state lodging tax include:
    • Lodgers who spend 30 or more consecutive days at the same facility.
    • Federal employees on federal business.

    State lodging tax history

    The 2003 Oregon Legislature passed House Bill (HB) 2267 to establish a state lodging tax. The revenue this tax generates funds Oregon Tourism Commission programs. HB 2197, passed in 2005, expanded the definition of “transient lodging” and the list of who must pay the tax. HB 2656, passed in 2013, expanded the list of who must collect and pay the tax. 

    HB 2656 took effect on October 7, 2013 and requires transient lodging providers and transient lodging intermediaries to collect and remit taxes computed on the total retail price paid for occupancy of transient lodging. 

    The 2016 Legislature passed HB 4146, which included two changes to the state lodging tax rate. Beginning July 1, 2016, the tax rate will be 1.8 percent of the total price charged for occupancy. The rate will drop to 1.5 percent on July 1, 2020.

    In 2017, the Legislature passed HB 2400 and 3180. HB 2400 allows a state agency to enter into agreement with a local government to administer the local government's lodging tax. HB 3180 requires the department to share state lodging tax information with local governments who request it. The information can only be used by a local government in administration of a local lodging tax. 

    Most recently, the 2018 Legislature passed HB 4120, which clarified the definition of transient lodging intermediary and updating the tax law to include current online booking business models. 

    City and county lodging taxes

    We don't administer local lodging taxes. 

    We encourage you to contact your city or county taxing authorities for information about local lodging taxes.

    Resources

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    File and pay online

    Revenue Online

    Contact us

    Phone: (503) 945-8120.
    Fax: (503) 947-2255.
    Email: SPA.help@oregon.gov.


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