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| Oregon State Lodging Tax |
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FOR LODGING PROVIDERS
- Who must pay this tax?
Anyone who stays in a "dwelling unit designed for temporary overnight human occupancy" for business, pleasure, or recreational purposes. This includes overnight rental of spaces designed for parking recreational vehicles.
If you are a provider of lodging units and spaces that are rented by the month or longer or are considered to be a principal residence, you may not need to collect the tax for those units. Also, businesses that manage vacation home rentals on behalf of the owner of those properties do not need to collect the tax. The state lodging tax does not currently apply to free-standing homes on separate properties.
- 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 programs in Oregon.
- How much will this cost me?
As a lodging provider, you are required to collect this tax from your customers. This tax is held in trust and remitted to Oregon Department of Revenue on a quarterly basis. The law allows you to withhold 5 percent of the state lodging taxes you collect to cover the cost of record keeping, reporting, and collecting the tax. If you fail to pay this tax timely, you may be assessed penalty and interest.
- 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.
- How did this tax come about?
The 2003 Oregon Legislature passed into law HB 2267 to establish a state lodging tax. Revenues generated from this tax will be used exclusively to fund the programs of the Oregon Tourism Commission and to implement its statewide tourism program.
- How and when do I pay this 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.
- How much paperwork will I need to do? Will I need to keep records?
The Oregon Department of Revenue will send you personalized quarterly tax returns and instructions. You must complete these returns each quarter.
You must collect the tax, keep records, render statements, and comply with rules set by the Oregon Department of Revenue with respect to this tax. The records and statements must show whether there is a tax liability.
You are allowed to withhold 5 percent of the state lodging taxes you collect to cover the cost of record keeping, reporting, and collecting the tax.
The Oregon Department of Revenue may examine the books, papers, or records required to be kept under ORS 305.824 (section 3).
- Can I pay this tax along with other business taxes I pay?
You must submit your tax payment with the State of Oregon Lodging Tax Return to ensure payment is applied appropriately.
- What happens if I don’t pay the tax or I pay it late?
If a provider fails to file a return or pay the amount due by the due date, a penalty will be charged equal to 5 percent of the amount due. If a return is not filed within 90 days from the due date, an additional penalty of 20 percent will be charged.
Interest will be added to any unpaid amount, figured from the time the tax becomes due. Interest will be at the rate established under Oregon law for each month or fraction of a month.
- How much money do you expect to collect?
Early estimates project receipts will reach $11 million a year.
- What counties and cities within Oregon and other states have lodging taxes?
Every state except Alaska and California has a state lodging tax. Rates in other states range from 3 to 12 percent. Many counties and cities within Oregon also levy a tax for lodging.
- Can providers get rebates on this tax?
No.
- Does the tax apply to just the cost of the room or are other taxes and charges included in the taxable amount?
If the cost of the lodging includes other amenities that are not optional, the entire lodging rate is taxable. Charges for other taxes and optional items offered for a separate fee would not be included in the tax.
- Do I have to collect this tax from customers who claim they have a special exemption from the tax?
A federal agency may have a written contract with a specific lodging facility to provide lodging for its employees. If it does, that agency´s employees are exempt from paying this tax when staying at that facility while conducting government business. Those customers do not need to pay the tax. If there is no written contract, the tax must be collected from all customers. If the lodging tax was not collected but should have been collected, the lodging provider still must pay the tax.
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