PROVISIONS APPLICABLE TO PRIVILEGE TAX
Privilege Tax Imposed on Music and Amusement Devices
(1) Devices subject to tax under ORS 320.010(2)(c) include carnival midway games, but do not include large carnival rides. Large carnival rides are those rides which require a skilled operator other than the customer, including, but not limited to, ferris wheels, merry-go-rounds, rock-o-planes, octopuses, etc.
(2) Presence of Coin Slots Immaterial. Any music or amusement device taxable under this chapter is subject to the priviledge tax regardless of whether it is coin-in-the-slot operated.
Stat. Auth.: ORS 305.100
Stats. Implemented: ORS 320.010
Hist.: 7-1-76; 5-20-82; 9-16-82; RD 6-1990, f. 12-20-90, cert. ef. 12-31-90, Renumbered from 150-320.010
Tax Not Refundable
A refund of amusement device tax will not be allowed if the taxpayer was responsible for the tax when it was paid.
Example 1: Bill operated a restaurant for several years until he sold the business on August 1 of the current year. The amusement device tax for a lottery machine was paid on June 30 of the current year. The new owner of the restaurant decided not to keep the lottery machine, so Bill had the lottery commission pick it up on July 31. Since Bill was responsible for paying the tax on June 30, the department may not refund any of the tax paid.
Example 2: Beth had a lottery machine in the tavern she operated for several years. She closed the tavern on October 31 of the current year, after the yearly amusement device tax was paid on June 30. The department may not refund any of the tax paid because Beth was responsible for paying the tax on June 30.
Example 3: Joe has a lottery machine in his bowling alley. The amusement device tax was paid on June 30 of the current year and Joe declared bankruptcy two months later. Since Joe was responsible for paying the tax on June 30, the department may not refund any of the tax paid.
Example 4: The amusement device tax for the lottery machine at Don's gas station was paid on June 30 of the current year. In July, a fire destroyed the gas station, the store and the machine. Don was responsible for paying the tax on June 30, so the department may not refund any of the tax paid.
Stat. Auth.: ORS 305.100
Stats. Implemented: ORS 320.016
Hist.: REV 10-2000, f. 12-29-00, cert. ef. 12-31-00
Waiver of Penalty
The provisions of OAR 150-305.145 shall be followed to determine when good and sufficient cause exists to consider a waiver of penalty charges for violations of the Privilege Tax law.
Stat. Auth.: ORS 305.100
Stats. Implemented: ORS 320.080
Hist.: RD 7-1985, f. 12-26-85, cert. ef. 12-31-85
State Lodging Tax
(1) Definitions. For purposes of ORS 320.305 and 320.308 and the rules thereunder:
(a) “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.
(b) "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) Public and Private Providers Must Collect the Tax. The state lodging tax applies to rents charged for dwelling units, recreational vehicle spaces, and tent spaces provided by public and private persons. It applies to dwelling units and recreational vehicle and tent spaces offered to the general public by state and local parks departments. It also applies to dwelling units and spaces offered for rent to the general public 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) Services Included in the Fee for Lodging. 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. 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 normal lodging rate, the amount allocated to the service is subject to the state lodging tax. Examples of non-optional services include, but are not limited to: cleaning service, free breakfast, pet charges, free transportation to the airport and providing an extra bed. 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 package consisting of a night of lodging and a round of golf for two, or a romance package that includes a night of lodging, a bottle of wine and dinner at a local restaurant. Any allocation made for the state lodging tax should be consistent with the allocation for a local lodging tax.
Example 1: 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. Guests may also have lunch or dinner at ABC and may charge the cost of these meals to their room. ABC will collect tax on $100 per night because the breakfast is included in the room fee. The tax does not apply to any charges for optional meals purchased by ABC’s guests.
Example 2: The High Mountain Resort offers winter lodging packages for customers. Customers can purchase a weekend package that includes two nights lodging and two ski lift tickets for a nearby ski resort for $250. Their regular charge for weekend lodging during the winter for a two night stay is $200. The state lodging tax will be collected on $200 because that represents the charge for providing lodging.
Example 3: The Highlife Hotel charges a standard room rate based on single 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 Youngs 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.
(4) Use of a Managing Agent. If a transient lodging provider uses a managing agent that is not an employee, the managing agent is considered the provider for the purposes of the 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.
(5) Registration of Providers. A transient lodging provider must register with the department on forms provided by the department.
(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.
Stat. Auth.: ORS 305.100 & 320.315
Stats. Implemented: ORS 320.305
Hist.: REV 3-2003(Temp), f. 12-15-03, cert. ef. 1-1-04 thru 6-28-04; REV 3-2004, f. & cert. ef. 6-25-04; REV 3-2005, f. 12-30-05, cert. ef. 1-1-06; REV 11-2008, f. & cert. ef. 9-23-08
State Lodging Tax Exemptions
(1) The following are exempt from the state lodging tax:
(a) Health care facilities certified, licensed or registered by the Department of Human Services.
(b) Drug and alcohol abuse and mental health treatment facilities.
(c) All dwelling units during the time a federal instrumentality pays for use of the units.
Example 1: The Red Cross (RC) contracts with several area motels to provide temporary emergency housing for victims of disasters. Because RC is a federal instrumentality, these units are not subject to the state lodging tax.
(d) Dwelling units at a nonprofit facility.
Example 2: A nonprofit church camp is organized to serve the congregations of the Southern Willamette Valley. This camp is solely for the use of these congregations and is not rented to the general public for profit. The church camp is not subject to the state lodging tax.
(e) Dwelling units occupied by:
(A) The same person for a consecutive period of 30 days or more during the year. “Person” means either the occupant of the dwelling unit or the one who pays for the transient lodging. After 30 consecutive days, the person is considered a tenant and is no longer considered an occupant of transient lodging. In this case, the 30 days must be consecutive.
Example 3: A major airline has an annual contract with a hotel near the airport. These dwelling units are used by out of town airline employees. Because the airline contracts and pays for the units for a consecutive period of more than 30 days per year, these units are not subject to the state lodging tax.
(B) A person who pays for lodging on a monthly basis, regardless of the number of days in such month.
(C) Federal employees and employees of federal instrumentalities, (i.e.: American Red Cross), on official business. (D) Persons with diplomatic immunity.
(f) Dwelling units used by the general public for less than 30 days per year. This refers to a total of 30 days over the course of the calendar year; the 30 days need not be consecutive. Even if a dwelling unit becomes temporarily exempt under section (5), that period of usage applies toward the 30 day requirement of this subsection.
Example 4: Ralph owns a hunting lodge in the mountains. He rents the lodge out to the general public for three weeks a year during the hunting season. Because Ralph rents the lodge out for fewer than 30 days per year, he is not required to collect the state lodging tax.
Example 5: Dave rents his vacation home to the Wright family for 45 consecutive days in May and June. This rental period is not subject to the state lodging tax as it is rented to the same person for more than 30 days. In July of that year Dave rents the same vacation home for 10 days to the Jacobson family. Because Dave rented his vacation home for more than 30 days over the course of the calendar year, a total of 55 days (45 plus 10), he is subject to the state lodging tax and must collect and pay the tax on the 10 day stay of the Jacobson family.
(2) If a member or employee of a non-profit organization stays at a facility that is subject to the state lodging tax, they are not exempt from the lodging tax and are required to pay the tax.
(3) Employees of state and local governments of Oregon or any other state are subject to the Oregon state lodging tax.
Stat. Auth.: ORS 305.100 & 320.308
Stats. Implemented: ORS 320.308
Hist.: REV 5-2008, f. 8-29-08, cert.ef. 8-31-08