About the state lodging tax
The 2003 Oregon Legislature established a state lodging tax. The revenue this tax generates funds the Oregon Tourism Commission programs.
The state lodging tax is currently 1.5 percent of the amount charged for occupancy of transient lodging.
Local lodging tax
Units of local government (cities and counties) 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.
For a list of units of local government whose lodging tax is administered by us, see our transient lodging administration information
The local lodging tax rate is set by the local municipality. Please contact your city and/or county
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.
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.
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 government's due date.
Quarterly filing due dates
If due date is a weekend or holiday, the return is due the next business day
. If you want to file and pay electronically using
Revenue Online:
To file your lodging tax return, go to our website,
Revenue Online. You are NOT required to login to file the state lodging tax return. Below the login fields on the right side of the page, there is a section called Quick links. Select the File a Return option from within that section. The next screen will bring you to a list of Account types. Under Lodging Returns you'll select File form OR-TLT. You'll then select the period for which you would like to file.
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.
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
- Booking service, 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.
For more information on additional fees and charges see
OAR 150-320-0040
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
How transient lodging taxes work
Cities and counties may enter into an agreement that allows us to administer the local transient lodging tax (TLT) on their behalf. The table below shows the Oregon cities and counties that we administer for.
If the city or county where your facility is located has an agreement with us for tax administration, you would make your local tax payments the same way you make your state tax payments. You'll also include your local tax information on the quarterly return you file with us. For more information on your filing requirements, Read the filing instructions for OR-OLT-OL, Oregon Lodging Tax- Instructions for Filing on Revenue Online to see what you'll need to file and pay online.
If the municipality where your business is located doesn't have an agreement with us, you'll need to contact them directly to find out how to pay and file for the local tax. This doesn't change your payment and filing process and requirements for the state tax.
Frequently Asked Questions
No, there is no formal registration process. Instead, when you file your first quarterly lodging tax return, you will be registered for a state lodging tax account. There will be a question on the lodging tax return that asks: “Is this your first return?" You'll mark “Yes" to that question. This is what will prompt us to generate a new lodging tax account for you.
No, once a stay reaches 30 consecutive days, the entire stay is NOT subject to state lodging tax.
The Department of Revenue (DOR) does not require an exemption certificate to be exempt from lodging tax if you are a federal employee on federal business. DOR only requires that the lodging provider retain reasonable proof that the stay was exempt.
Reasonable proof could be travel orders, or a letter from the federal employer on official letterhead stating the reason for travel is work related, or records showing the room was paid for using a government issued credit card or payment arrangements were made with the federal entity directly.
Local governments may have different requirements to be exempt from local transient lodging taxes.
By separating the properties gross receipts, we can administer the local (city and county) transient lodging tax for facilities with multiple properties in various areas around the state. By separating gross receipts by property, our system can determine if local tax is due by address.
No, if all your bookings are handled through your TLI, and will not be handled by you in the foreseeable future, you will not need to complete a return.