Current through Register Vol. 63, No. 9, September 1, 2024
(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
