Oregon's state lodging tax
The 2003 Oregon Legislature establish a state lodging tax. The revenue this tax generates funds Oregon Tourism Commission programs. Please click hereif you are interested in the history of the state transient lodging tax.
The state lodging tax is currently 1.5 percent of the amount charged for occupancy of transient lodging.
|
Payment date |
State Tax rate |
| Before July 1, 2016 | 1% |
| On or after July 1, 2016 | 1.8% |
| On or after July 1, 2020 | 1.5% |
Oregon's local lodging tax
Units of local government (cities and countries) may also have a lodging tax. They may enter into an agreement that allows us to administer their local transient lodging tax. If the unit of local government where your facility is located has an agreement with us for tax administration, you will file the local return with us. Our new
Transient Lodging Tax return beginning in the first quarter of 2021, allows you to report only the state information If your unit of local government is not participating, or state and the unit of local government if it is participating.
For a list of units of local government whose lodging tax is administered by us, see our
transient lodging administration page. For a list of units of local government whose lodging tax is not administered by us we encourage you to see our City or County contact page for information about those local lodging taxes.
The local lodging tax rate is set by the local municipality. Please contact your municipality for the appropriate tax rate.
Tax responsibility
Transient lodging providers and transient lodging intermediaries must collect and remit the state transient lodging tax. Many units of local government also require these entities to collect and remit a local transient lodging 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;
- Collects the amount charged 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 amount charged for occupancy of the transient lodging.
Transient lodging intermediaries include but are not limited to:
- Online travel companies
- Travel agents
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 payments
If you collect payment from lodging customers, you're responsible for collecting and remitting the tax and filing a return. Beginning January 1, 2020, the tax is due when the occupancy of the transient lodging ends.
The law allows transient lodging providers and transient lodging intermediaries to withhold 5 percent of the state lodging taxes collected to cover your costs for recordkeeping, reporting, and collecting the tax. This is referred to as an administrative fee. To see if your unit of local government allows an administrative fee, please see our
Transient lodging administration page.
In accordance with HB 3136, the Department of Revenue will retain the 5 percent state administrative fee from transient lodging intermediaries to implement the local lodging tax. The administrate fee reduction will resume once the implementation cost is collected. Any excess will be refunded proportionately to transient lodging intermediaries.
Returns and payments for the state and participating units of local government 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.
For a list of units of local government with a transient lodging tax, see our
transient lodging administration page. This list will tell you if you report the local lodging tax on the same return used to report the state lodging tax or if you need to file separately with your unit local governments due date.
Read the filing instructions to see what you'll need to file and pay online.
| 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. This penalty applies to the state transient lodging tax and all participating units of local government transient lodging tax 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 charged for the service is subject to the state lodging tax. Examples of fees for non-optional services include but are not limited to: cleaning service, pet charges, extra bed, service, and processing. 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 night of lodging and a round of golf for two or a night of lodging, a bottle of wine, and dinner at a local restaurant.
Exemptions
Lodging facilities exempt from the lodging tax include places for:
- Health care, hospitals, long-term care, and residential care that is licensed, registered, or certified by the Oregon Department of Human Services
- Drug or alcohol abuse and mental health treatments
- Those with fewer than 30 days of rentals in a calendar year (Beginning January 1, 2020, rentals by transient lodging intermediaries are not eligible for this exemption.)
- Emergency temporary shelter funded by a government agency
- Nonprofits such as youth or church camps, conference centers, etc.
Lodgers exempt from the state lodging tax include
- Those who spend 30 or more consecutive days at the same facility
- Federal employees on federal business
Resources