Department of Revenue
Chapter 150
Division 320
PROVISIONS APPLICABLE TO PRIVILEGE TAX
150-320-0040
State Lodging Tax
(1) Definitions. For purposes of ORS 320.305 and 320.308 and the rules thereunder:
(a) The definitions contained in ORS 320.300 are incorporated herein and made a part of this rule.
(b) “Managing agent” means a person that:
(A) facilitates the rental or sale of transient lodging;
(B) collects the consideration charged for occupancy; and
(C) is responsible for one or more of the following related to transient lodging:
(i) marketing,
(ii) cleaning,
(iii) on-site troubleshooting,
(iv) day-to-day maintenance, or
(v) serving as the point of contact during a guest’s stay.
(c) “Nonprofit facility” means a lodging facility that is owned by an IRC 501(c) exempt organization or an organization described in ORS 65.001(31) and that is not operated for profit.
(d) "Transient lodging provider" includes a person who operates a facility, whether in the capacity of owner, managing agent, lessee, sub-lessee, mortgagee in possession, licensee, concessionaire, or any other capacity.
(2) Providers and Intermediaries Must Collect the Tax. Transient lodging providers and transient lodging intermediaries that collect consideration charged for temporary human occupancy are required to collect state lodging tax and report and remit the tax to the Department of Revenue. The state lodging tax applies to consideration charged for dwelling units and recreational vehicle and tent spaces used for temporary human occupancy that are provided by public or private persons. It applies to dwelling units and recreational vehicle and tent spaces offered by state and local governments and to dwelling units and spaces offered for temporary human occupancy on federal lands operated by a concessionaire on a contract basis with a federal agency, such as the U.S. Forest Service, Bureau of Land Management, and the National Parks Service.
(3) Providers and Intermediaries Report and Remit Tax Quarterly. State lodging tax is due from the transient lodging customer when occupancy ends and must be reported by the provider or intermediary for the quarter in which the last day of occupancy occurs.
Example 1: On June 1st, Joe Smith books a beach house for his family’s vacation from December 27th through January 3rd. He pays 50 percent of the amount charged for the occupancy on June 1st. The remaining 50 percent is due 30 days prior to the stay. All of the state lodging tax paid for the family vacation is due from Joe on January 3rd and must be reported and remitted on the lodging taxpayer’s 1st quarter lodging tax return filed in April.
(4) Services Included in the Fee for Lodging.
(a) 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.
Example 2: The ABC Bed and Breakfast charges $100 per night for a room. Guests are provided a breakfast that is included in the per-night fee. Lunch and/or dinner are also available at an additional cost and may be charged to the room. ABC must collect tax on $100 per night for the room fee. Charges for the optional lunch and/or dinner are not included in the calculation of state lodging tax.
(b) 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.
Example 3: The High Rise Hotel charges a standard room rate based on single adult occupancy. The Young family has two children and a dog. They rent a room for one night. The basic room rate is $80 per night. There is a $10 charge for a second adult. There is no charge for the children. The Young’s request a crib that costs an additional $10. There is also a $10 charge for the family dog. The state lodging tax applies to all of the additional fees as well as the standard room rate. The total amount subject to tax is $110 ($80 room rate plus $10 additional adult plus $10 crib fee plus $10 pet fee).
Example 4: The Hedgehog Inn works with INEZ.com, a transient lodging intermediary. The Stubblefield family used INEZ.com to book a room at the Hedgehog Inn for their annual family reunion. The standard room rate is $100. Additionally, INEZ.com charges a 5 percent processing fee. The state lodging tax applies to the 5 percent processing fee as well as the standard room rate. The total amount subject to the tax is $105 ($100 room rate plus 5 percent processing fee).
(c) 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 golf package consisting of one night of lodging and a round of golf for two, or a romance package that includes one night of lodging, a bottle of wine and dinner at a local restaurant.
Example 5: The High Mountain Resort offers winter lodging packages for customers. Customers can purchase a weekend package for $250 that includes two nights lodging and two ski lift tickets for a nearby ski resort. The regular charge for two nights lodging during the winter is $200. The state lodging tax will be collected on $200 because that represents the charge for the lodging.
(5) Use of a Managing Agent. If the owner of transient lodging uses a managing agent that is not an employee, the managing agent is considered the transient lodging provider for the purposes of the state lodging tax and has the same duties and liabilities as the operator. Compliance with the provisions of the state lodging tax by either the lodging provider or the managing agent is considered compliance by both.
(6) Penalty Imposed. The person submitting the return required by ORS 320.315 must sign the return and is subject to the penalty for false swearing under ORS 162.075, which is a Class A misdemeanor.
Statutory/Other Authority: ORS 305.100 & 320.315
Statutes/Other Implemented: ORS 320.305
History:
REV 11-2019, amend filed 12/11/2019, effective 01/01/2020
REV 78-2016, f. 12-28-16, cert. ef. 1-1-17
Renumbered from 150-320.305, REV 36-2016, f. 8-12-16, cert. ef. 9-1-16
REV 11-2008, f. & cert. ef. 9-23-08
REV 3-2005, f. 12-30-05, cert. ef. 1-1-06
REV 3-2004, f. & cert. ef. 6-25-04
REV 3-2003(Temp), f. 12-15-03, cert. ef. 1-1-04 thru 6-28-04