Oregon's state lodging tax
The 2003 Oregon Legislature passed House Bill 2267 to establish a state lodging tax. The revenue this tax generates funds Oregon Tourism Commission programs. House Bill 2197 (2005) expanded the definition of "transient lodging" and the list of who must pay the tax. House Bill 2656 (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 House Bill 4146, which included two changes to the state lodging tax rate. Beginning July 1, 2016, the tax rate increased from 1 percent to 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 House Bills 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.
The 2018 Legislature passed House Bill 4120, which clarified the definition of transient lodging intermediary and updated the tax law to include current online booking business models.
Most recently, the 2019 Legislature passed three bills that withhold the 5 percent collection reimbursement from transient lodging intermediaries (House Bill 3136) to implement local lodging tax administration, remove one rental exemption for transient lodging intermediaries (House Bill 3138), and make state lodging tax due and reportable to the department for the quarter that the occupancy ended (House Bill 3137).
The state lodging tax is currently 1.8 percent of the consideration charged for occupancy of transient lodging.
Tax responsibility
Transient lodging providers and transient lodging intermediaries must collect and remit the state 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 consideration 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 consideration 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.
The tax rate is based on the date of payment:
Before July 1, 2016
|
1% |
On or after July 1, 2016
|
1.8%
|
On or after July 1, 2020
|
1.5%
|
Returns and payments
If you collect payment from lodging customers, you're responsible for collecting and remitting the tax and filing a return quarterly. Beginning January 1, 2020, the tax is due when the occupancy of the transient lodging ends. Read the filing instructions to see what you'll need to file and pay online.
The law allows you to withhold 5 percent of the state lodging taxes you collect to cover your costs for recordkeeping, reporting, and collecting the tax.
In accordance with HB 3136, the Department of Revenue will retain the 5 percent collection reimbursement charge from transient lodging intermediaries to implement the local lodging tax. The reimbursement charge will resume once the implementation cost is collected. Any excess will be refunded proportionately to transient lodging intermediaries.
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.
| 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
|
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 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 state 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.
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.
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