Announcement: Transient Room Tax Changes

Corvallis Transient Lodging Operators:

As of July 1, 2015, the State of Oregon requires transient lodging intermediaries or online travel companies (such as Orbitz, Priceline or Airbnb) that sell and collect fees on your behalf using the “merchant model” for reservations to collect, remit, and report the state and local lodging taxes due for the rooms that they reserve.

Please be aware that the state tax law changes will not impact the way you collect, report, and remit City of Corvallis Transient Room Taxes (TRT) attributable to direct fees your establishment charges a customer that are not covered by the reservation made through an intermediary or online travel company.

What you need to do:

If your lodging facility sells accommodations to lodging intermediaries or online travel companies, continue to report the income received from these transactions on the City of Corvallis Transient Room Tax Return Form – Lodging Entities remittance Return as part of “the gross monthly receipts from guest room rentals” amount. The revised TRT tax return form will provide a line for you to deduct the revenue received from lodging intermediaries for bookings done on or after 7/1/15.

The TRT tax return form along with instructions for completing the return has been revised to accommodate this change. The tax return form will include a new line to subtract income from lodging intermediaries or online travel companies before calculating your TRT collections for the month. The form will also include an additional page for you to report rent receipts from individual lodging intermediaries and online travel companies. To accurately report these transactions on your tax return it will be important that you maintain records on each company you sell accommodations to.

If you have any questions regarding this change, please call the number under the contact information on this page.

 

About the Program

Per Corvallis Municipal Code 8.04, the City is authorized to collect a 9% tax on all places of lodging.  The transient room tax is imposed on the rental of a room space in a hotel or home costing $2 or more each day. The tax applies not only to hotels and motels, but also to bed and breakfasts, condominiums, apartments and houses.  

Persons leasing their houses, or rooms in their house, must collect the tax from their customers and submit to the City in the same way a hotel or motel collects the tax from its guests. Property management companies, online travel companies and other third-party rental companies are also responsible for collecting the tax. The entity that collects that payment for the room is the entity that is responsible for collecting and remitting the transient room tax to the City of Corvallis.  If you are planning to rent your home/property or part of your home/property on a short-term basis, please contact the City of Corvallis Code Enforcement division at 541.766.6929 or go to their website to get information whether your home is zoned for short-term rentals.

 

A lodging business or transient lodging intermediary must register with the City within 15 days after commencing business. The transient room tax is due to the City on or before the 15th day of the month for the preceding month, and is delinquent on the last day of the month in which it is due. After that date, penalties and interest will be applied according to Municipal Code 8.04.

During 2013, the State of Oregon passed HB 2656 – State Lodging Tax. This law 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 law defines a transient lodging intermediary as a person or business, other than a transient lodging provider, that facilitates the retail sale and charges for the occupancy of transient lodging. Examples of transient lodging intermediaries include, but are not limited to, online travel companies, travel agents, and tour outfitter companies.

Contact Information

For Payment related information please call 541.766.6738.

Program Administration - Julian Contreras - Financial Services Manager - 541.766.6729 ext 5110

Please mail any correspondence or payments to:

City of Corvallis
Attn: Finance Dept - Treasury Accountant
PO Box 1083
Corvallis OR 97339-1083

Forms

The following forms are available online.  If you experience problems with the forms while using Safari, you may need to install the free version of Adobe Reader.

 

Registration Form - Local lodging entities and transient lodging intermediaries needing to register or update information need to complete the registration form and return to the address above or send via email to treasury@corvallisoregon.gov.

Lodging Entities Registration Form

Transient Lodging Intermediaries Registration Form

 

Return Form – Local lodging entities and transient lodging intermediaries must complete their respective tax return form and submit with the related payment no later than 15 days after month-end. Transient room taxes are due no later than the 15th day of the month for the preceding month. For example, the transient room tax for July would be due no later than August 15.

Lodging Entities Tax Return Form

Transient Lodging Intermediaries Tax Return Form

 

Exemptions - The City’s Transient Room Tax ordinance allows specific exemptions. Each exemption requires a specific form to be completed. The completed forms must be included with your transient room tax payment.

Exemption Form - Used to document all exemptions:

 

Making Payments

For information on making payments, please visit the Transient Room Tax Payment page.

Frequently Asked Questions

What is TRT?
The City of Corvallis taxes the occupancy of any structure or any portion of any structure that is rented out on a short-term basis. TRT is calculated as a percentage of the rent for the occupancy of a structure or any portion of the structure. The operators or transient lodging intermediaries are required to collect the tax from transients on the total retail price paid for by the occupancy of transient lodging. Operators or transient lodging intermediaries hold the TRT revenues in trust and remit them to the City Finance Department every month. If the operator or transient lodging intermediary fails to collect the tax, the operator or transient lodging intermediary is liable to the City for the amount of the tax due on the amount of taxable rent for the occupancy of the structure or any portion of the structure as if the transient had paid the tax.

What is a transient lodging intermediary?
The law defines a transient lodging intermediary as a person or business, other than a transient lodging provider, that facilitates the retail sale and charges for the occupancy of transient lodging. Examples of transient lodging intermediaries include, but are not limited to, online travel companies, travel agents, and tour outfitter companies.

Who must pay the tax?
Anyone who stays overnight in a temporary rental unit or space designed for occupancy. 

Who collects the tax?
Any owner, person, operator or transient lodging intermediary of a temporary rental unit or space is responsible for collecting the tax at the time the fee for staying is paid.

How much is the tax?
The tax rate ranges from 9% for the City of Corvallis. The State of Oregon imposes a additional 1% tax. Information related to the Oregon State Lodging Tax can be found on the Oregon Department of Revenue Website.

How are the TRT funds used?
Per section 8.04.190 of the municipal code, the TRT funds may be used for visitiors information center(s), convention promotion and support, the administration of the transient occupancy tax and any other municipal purposes.

What is HB2656 and when did it take effect?
HB2656 was introduced during the 2013 regular legislative session and took effect on October 7, 2013. It 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.

Who is exempt from paying TRT?
Any occupant staying 30 or more successive calendar days, occupants with a tax-exempt voucher from the City of Corvallis and Federal employees that are on Federal Government business.

What is a Transient?
A Transient is any person that rents any structure or any portion of any structure for less than one month. 

How do I apply for a certificate number?
Complete and submit the City of Corvallis Transient Room Tax Registration Form. General instructions are provided in the application document.

I rent out a room in my condo via an internet website; is my rental subject to the TOT and TMD assessment?
Yes, if you are renting the room out for less than one 30 successive days, this rental is subject to the TRT. Any structure or any portion of any structure that is rented out is subject to the TRT. The method used to advertise and/or book rentals, whether through a property management company, an online service (such as VRBO, AirBNB, or Homeaway), is not a determining factor. The TRT requires Operators and/or Owners to obtain a Transient Room Tax Certificate if renting to a Transient. This certificate number is used when remitting the TRT to the City. For additional questions, please contact our office at 541.766.6729 xt 5110 or at julian.contreras@corvallisoregon.gov.

I rent my personal residence (or portion of) to Transients. Other than the TRT, is there any other tax or fee that I need to remit to the City?
No

I have a neighbor that is renting his/her residence on a short-term basis. What can I do?
Contact the Finance Department at 541.766.6729 xt 5110 or at julian.contreras@corvallisoregon.gov and provide us as much information as possible (e.g. address of rental, owners name and contact information).

Are cleaning fees taxable?
It depends on the nature of the charge. If the fee is non-refundable, it is part of what the guest pays for occupancy (i.e. rent) and is therefore subject to the TRT. Conversely, if the cleaning fee is fully refundable with funds withheld only for specific damages, it is not subject to the TRT.

How do I determine if my short-term guest is exempt from the TRT?
The guest must provide official federal government business travel orders and a qualifying picture ID. You can verify if their government agency is listed on LSU Libraries Federal Agency Directory. You may also find the TRT exemption information on the main TRT page. Occupants with tax-exempt must present tax-exempt form from the City of Corvallis. Once verified, the guest must complete the TRT exempt form and sign.

I just became aware that my property is subject to the TRT. I am voluntarily coming forward to get caught up on taxes/assessments owed. Can you waive the penalties?
No, we do not have the authority to waive penalties; penalties are governed by Corvallis Municipal Code 8.04.

As a Property Management company, do I have to remit a return for each property I manage?
No, property management companies do not have to remit a separate return for each property they manage. Please ensure the summary return includes monthly totals per property and the corresponding TRT certificate numbers.

How do I remit my TRT payments?
There are two ways to pay: by mail, or in person. Additional details can be found on the Transient Room Tax Payments page.

Who is responsible for remitting the lodging tax?
Whoever collects payment for the transient lodging space is responsible for collecting and remitting the tax to the City of Corvallis.

If I’m a lodging intermediary who only books rooms, am I responsible for paying the lodging tax?
No. If you only book rooms and do not collect payment from customers, you are not responsible for collecting and remitting the lodging tax. The lodging provider who collects payment for lodging is responsible for the tax in this situation.

If I use a company to advertise my transient lodging on their website, but I handle all bookings and payments, am I responsible for remitting the lodging tax?
Yes. Since you collect payment from your customers for lodging, you are responsible for collecting and remitting the tax.

If I’m a lodging provider who conducts business with lodging intermediaries, am I responsible for remitting the lodging tax to the City of Corvallis?
If the lodging intermediary collects payment directly from the lodgers, the lodging intermediary is responsible for collecting and remitting the tax on the entire retail price.

How does a transient lodging intermediary remit the tax they receive from customers?
Lodging intermediaries must submit a monthly remittance report and remit the tax directly to the City of Corvallis. They should not send the taxes to the lodging provider.

If a lodging intermediary fails to remit the lodging tax to the City of Corvallis even though they collect payment from customers, is the lodging provider ultimately responsible?
No. HB 2656 changed the law making lodging intermediaries responsible for collecting and remitting lodging tax on the retail price they directly charge customers for Corvallis lodging. Therefore, lodging providers are not responsible for collecting and remitting Corvallis lodging tax on these transactions.

If I’m a lodging provider who does no business with lodging intermediaries, do I need to do anything differently?
No. Continue to report and remit your lodging taxes as usual.

Last updated: 1/13/2017 2:34:30 PM