SALEM — Oregon’s local governments would gain more power to collect hotel room taxes from Airbnb and other intermediary websites for vacation rentals under a bill overwhelmingly approved by the state House on Thursday.
House Bill 4120 would make clear that all intermediary websites are responsible for collecting state and local hotel taxes on overnight room rentals, if they collect the rental payment on behalf of the property owner or receive any fee or commission. The bill also specifies that the full room price paid by consumers should be taxed — preventing a practice where some online firms subtract service or cleaning fees before applying the tax.
Most hotel tax revenue must be used to promote and foster tourism, under state law, but local governments can use a portion of their individual funds as they please. Eugene and Springfield impose a 9.5 percent tax on hotel stays; the state tacks on an additional 1.8 percent tax.
“Online platforms have given consumers more choice and more flexibility. That’s a good thing,” said Rep. Pam Marsh, an Ashland Democrat. But “taxes should be equitably applied to everyone in the business.”
