The following definitions apply in this chapter.
means any reservation and/or payment service provided by
a person or entity that facilitates a short-term rental transaction
between a host and a prospective occupant, and for which the person
or entity collects or receives, directly or indirectly through an
agent or intermediary, a fee in connection with the reservation and/or
payment services provided for the shortterm rental transaction. Booking
services include directly or indirectly accepting, receiving or facilitating
payment, whether or not the person or entity is the ultimate recipient
of the payment, including through application programming interfaces
(APIs) or other computerized devices where third party providers receive
information about a transaction and collect funds for the transient
lodging occupancy from an occupant.
means the owner or person who resides at the short-term rental
or has been designated by the owner or resident of the short-term
rental and who rents out the short-term rental for transient lodging
occupancy either directly or through the use of a hosting platform.
means a person or entity that participates in the short-term
rental business by collecting or receiving a fee for booking services
through which host may offer a transient lodging facility. Hosting
platforms usually, though not necessarily, provide booking services
through an online platform that allows a host to advertise the transient
lodging through a website provided by the hosting platform and provides
a means for the host to conduct a transaction by which prospective
occupants arrange transient lodging and payment, whether occupant
pays rent directly to the host or to the hosting platform.
means the operator or hosting platform or designee thereof
that accepts, receives or facilitates the payment directly from the
occupant, whether or not the operator or hosting platform is the ultimate
recipient of the payment.
means the use or possession, or the right to the use or possession
for lodging or sleeping, or any other purposes, of any room or rooms
in transient lodging or a portion thereof.
means any individual who exercises occupancy or is entitled
to occupancy in transient lodging for a period of 30 consecutive calendar
days or less, counting portions of calendar days as full days.
means:
Any person who provides transient lodging for occupancy to the
general public for compensation. Furnishing accommodations can be
done via employees, contractors, agents or any other person allowed
to process reservations and accept payment for the transient lodging
on behalf of the transient lodging provider; or
Any person who facilitates the reservations of an accommodation
and collects the payment for the transient lodging reservation from
the occupant; or
Any transient lodging provider, transient lodging intermediary
or transient lodging tax collector as defined in ORS 320.300.
means any individual, firm, partnership, joint venture, limited liability company, corporation, limited liability partnership, association, host, social club, fraternal organization, fraternity, sorority, public or private dormitory, joint stock company, estate, trust, business trust, receiver, trustee, syndicate, or any other group or combination acting as a unit. However, for the purpose of determining whether a person meets the exemption described in Section 3.38.050, "person" means a member of the general public.
means the consideration paid or payable by an occupant for
the occupancy of space in transient lodging valued in money, goods,
labor, credits, property, or other consideration. If a separate fee
is charged for services, goods or commodities and the fee is optional,
that fee is not included in rent.
means a house, duplex, multi-plex, apartment, condominium,
houseboat, trailer or other residential dwelling unit where a person
rents guest bedrooms or the entire residential dwelling unit for transient
lodging occupancy. Generally, a short-term rental is zoned residential
or has a building occupancy that only allows for residential use.
means the city manager of the city of Hillsboro or the city
manager's designee, which could be someone employed by an entity other
than the city of Hillsboro.
means the transient lodging tax.
means any individual who exercises occupancy or is entitled
to occupancy in transient lodging for a period of 30 consecutive calendar
days or less in any period, counting portions of calendar days as
full days. The day a transient checks out of the transient lodging
shall not be included in determining the 30-day period if the transient
is not charged rent for that day by the operator. Any such individual
so occupying space in transient lodging shall be deemed to be a transient
until the period of 30 days has expired unless there is an agreement
in writing between the operator and the transient providing for a
longer period of occupancy. In determining whether a person is a transient,
uninterrupted periods of time extending both prior and subsequent
to the effective date of the ordinance codified in this chapter may
be considered. A person who pays for lodging on a monthly basis, irrespective
of the number of days in such month, shall not be deemed a "transient."
means:
Hotel, motel and inn dwelling units that are used for temporary
overnight human occupancy;
Spaces used for overnight parking of recreational vehicles or
placement of tents during periods of human occupancy; or
Houses, cabins, condominiums, apartment units or other dwelling
units, or portions of any of these dwelling units that are used for
temporary human occupancy.
(Ord. 6242 § 1, 2017)
A.
Effective
August 17th, 2017 each occupant shall pay a TLT in the amount of three
percent of the rent. The occupant shall pay the TLT with the rent
to the local tax trustee. TLT amounts shall be rounded down to the
nearest cent. The local tax trustee shall maintain records of all
rent charged and TLT payments received. If rent is paid in installments
a proportionate share of the TLT shall be paid by the occupant to
the local tax trustee with each installment unless the occupant pays
the entire amount with the first payment.
B.
Bills,
receipts or invoices provided to occupants shall list the city TLT
separately and must accurately state the amount of tax. All amounts
listed as TLT on invoices, bills or receipts must be reported as TLT
and, after collection, must be turned over to the city, less the five
percent administrative charge.
(Ord. 6242 § 1, 2017)
A.
Every
local tax trustee shall collect the TLT at the time rent is paid,
unless an exemption applies. If payment is by credit card, for purposes
of this section, payment is made at the time credit card information
is provided to local tax trustee, not when the local tax trustee ultimately
receives credit for the transaction. While holding the payment in
trust for the city, a local tax trustee may commingle the tax proceeds
with the local tax trustee's funds, but the local tax trustee is not
the owner of tax proceeds, except that, when a return is filed, the
local tax trustee becomes the owner of the administrative fee authorized
to be retained. Local tax trustees may choose to file returns and
remit payment based on amounts accrued but not yet collected. The
local tax trustee is liable for any TLT that should have been collected
from the occupant, except in cases of nonpayment of rent by the occupant.
B.
Upon
request of the city, local tax trustees must provide all physical
addresses of transient lodging facilities within the city limits and
the related contact information, including the name and mailing address,
of the general manager, agent, owner, host or other responsible person
for the location.
(Ord. 6242 § 1, 2017)
Operators who receive any portion of the rent and hosting platform
that provide booking service are jointly and severally liable for
the tax.
(Ord. 6242 § 1, 2017)
No TLT shall be imposed upon:
A.
Any
person for that portion of the occupancy that is more than 30 consecutive
calendar days;
B.
Any
occupant whose rent is valued at less than two dollars per day;
C.
Rent
paid for a hospital room or to a medical clinic, convalescent home,
assisted living facility, hospice, group home for aged or disabled
persons, or similar facility; or
D.
Occupancy
by an employee of the federal or state government on official business
provided the employee seeking the exemption provides reasonable documentation
to the operator.
(Ord. 6242 § 1, 2017)
A.
Every
person engaging or about to engage in business as an operator shall
provide a completed registration form to the tax administrator within
15 calendar days after commencing business. The registration form
shall require the operator to provide the name of the business, any
separate business address, and other information as the tax administrator
may require to implement this chapter. Operators who own or operate
transient lodging facilities in Hillsboro shall provide the address
of the lodging facility. The registration form shall be signed by
the operator. The tax administrator shall, within 10 days after registration,
issue without charge a certificate of authority to collect the TLT.
The obligation to collect the TLT is imposed once rent for transient
lodging is paid, even if the registration form has not been filed
or if the certificate has not been issued. If rent transaction is
facilitated online, the certificate of authority must be able to be
viewed by the occupant by clicking on link to the certificate of authority
at a reasonable place during the payment transaction.
B.
Certificates
shall be nonassignable and nontransferable, and shall be surrendered
to the tax administrator when the business is sold or transferred
or when a lodging facility ceases to operate at the location specified
in the registration form. Each certificate issued to an operator for
a specific lodging facility shall be prominently displayed at the
lodging facility and include:
(Ord. 6242 § 1, 2017)
A.
Local
tax trustees shall submit a completed tax return form to the tax administrator
on a monthly basis on the 10th day of the month for the preceding
month, reporting the amount of tax due during the quarter and accompanied
by remittance of all tax collected, less a five percent administration
fee.
B.
The
local tax trustee is entitled to the administration fee. If a transient
lodging facility has multiple operators they are not entitled to retain
additional fees.
C.
Remittances
are delinquent if not made by the 10th day of the month for the preceding
month.
D.
Returns
shall show the gross rents collected, taxable rents, the total amount
of TLT collected and the amount of the administrative fee retained
by the local tax trustee. Returns shall also show the exempt and excluded
rents and the basis for exemptions and exclusions.
E.
Tax
returns and remittances may be submitted in person or by mail. If
the return and remittance is mailed, the postmark shall be considered
the date of delivery.
F.
The
tax administrator may extend the time for making any return or remittance
of the tax by up to 30 days. No further extension shall be granted,
except by the city council. Any local tax trustee to whom an extension
is granted shall pay interest at the rate of one percent per month
on the amount of the remittance due without proration for a fraction
of a month. If a return is not filed, and the remittance and interest
due is not paid by the end of the extension granted, then the interest
shall become a part of the tax for computation of penalties.
(Ord. 6242 § 1, 2017)
A.
Interest.
In addition to the penalties imposed, interest shall be added to the
overall tax amount due at a rate of one percent for each month, or
fraction of a month without proration for portions of a month, from
the time the return was originally required to be filed by the local
tax trustee to the time of payment.
B.
Penalty.
If the local tax trustee fails to file a return or pay the tax as
required, a penalty shall be imposed upon the local tax trustee in
the amount of 10 percent of the amount of tax due in addition to the
amount of the tax. Any local tax trustee who fails to file a return
or pay the tax as required on or before 30 days following the date
on which the remittance first became delinquent, shall pay a second
penalty of 15 percent of the amount of the tax due in addition to
the amount of tax and the original 10 percent penalty.
C.
Financial
Obligation. Every penalty imposed, and any interest that accrues,
becomes a part of the financial obligation required to be paid by
the local tax trustee and remitted to the city.
D.
Enforcement.
If at any time a local tax trustee fails to remit any amount owed
in taxes, interest or penalties, the city or an authorized designee
such as the Oregon Department of Revenue, may enforce collection on
behalf of the city of the owed amount.
(Ord. 6242 § 1, 2017)
A.
Deficiency
Determination. The tax administrator may review tax returns and adjust
the amount due based on the information in the return, on information
obtained during a review or audit of records, or on the basis of other
evidence. In the event of a deficiency, the tax administrator shall
provide notice of the deficiency to the local tax trustee, who shall
remit deficiencies within 10 business days of the deficiency notice.
Notice may be by personal delivery or certified or registered mail.
Penalties on deficiencies shall be applied as set forth in this chapter.
1.
In
reviewing and adjusting tax returns, the tax administrator shall offset
any amount received in excess of the remittances due against any shortages
in remittances.
2.
Except
in the case of fraud or intent to evade the TLT, notice of deficiency
determinations shall be issued within three years of the period for
which the deficiency determination is made.
3.
The
time to remit deficient amounts payment under this section shall be
extended if the local tax trustee timely requests a redetermination.
B.
Fraud—Refusal
to Collect—Evasion. If any local tax trustee fails to collect,
report or remit the tax as required, submits a fraudulent return,
or otherwise violates or attempts to violate this chapter, the tax
administrator shall estimate the tax due, and calculate the amount
owing from the local tax trustee for tax remittance, interest and
penalties and provide notice to the local tax trustee of the assessment.
A penalty of 25 percent of the amount of the tax shall be added thereto
in addition to the penalties stated above. The determination and notice
shall be made and mailed within three years of the discovery by the
tax administrator of the violation. The determination is due and payable
immediately and shall become final 10 business days after the date
notice was delivered if no petition for redetermination is filed.
(Ord. 6242 § 1, 2017)
A.
Any
person affected by a determination may file a petition for redetermination
with the tax administrator within 10 business days of service of notice
of the tax deficiency. A determination becomes final if a petition
for redetermination is not timely filed. Payment in full of all taxes,
penalties, and interest as determined by the tax administrator to
be due is a prerequisite to filing a petition for redetermination.
Filing a petition for re-determination and refund is a prerequisite
to seeking judicial review.
B.
If a
petition for redetermination is filed within the allowable period,
the tax administrator shall reconsider the determination and grant
an oral hearing if requested. The tax administrator shall grant the
petitioner an oral hearing with 10 days' notice of the time and place.
C.
The
tax administrator may decrease or increase the amount of the determination
as a result of the hearing and if an increase is determined, such
increase shall be due on notice of the decision.
D.
The
decision of the tax administrator on redetermination becomes final
and payment is due 10 business days after the decision is mailed unless
the petitioner files an appeal to the city council within that time.
The appeal shall be filed with the tax administrator. The city council's
decision shall be final when reduced to writing and mailed to the
petitioner and all amounts due must be paid within 10 business days
of mailing of the city council decision.
(Ord. 6242 § 1, 2017)
A.
The
city may bring legal action to collect on any amounts owed to the
city under this chapter within three years after remittance is due
to the city or within three years after any determination becomes
final.
B.
The
city is entitled to collect reasonable attorneys' fee in any legal
action brought to collect on amount owed to the city under this chapter.
(Ord. 6242 § 1, 2017)
The city may record a lien in the city's lien docket against
any real property owned by an operator who receives any portion of
the rent from a transient lodging facility located within the city
as to any delinquent remittances by the operator.
(Ord. 6242 § 1, 2017)
Refunds by the city to the local tax trustee. If the local tax
trustee remits more tax, penalty or interest than is due, the local
tax trustee may file a claim in writing stating the facts relating
to the claim, within one year from the date of remittance. If the
claim is approved by the tax administrator, the excess amount shall
be either refunded or credited on any amount due from the local tax
trustee.
(Ord. 6242 § 1, 2017)
A.
Use
of TLT Funds. Seventy percent of the revenue from the tax rate of
three percent shall be used for tourism promotion and tourism related
facilities. Thirty percent of the revenue of the three percent shall
be used for city services.
B.
Records
Required from Local Tax Trustee. Every local tax trustee shall keep
records of each transaction involving rent and/or collection of TLT.
All records shall be retained for at least three years and six months.
C.
Examination
of Records—Investigations. The tax administrator or agent may
examine all records of a local tax trustee relating to receipt of
rent and TLT and remittance of tax during normal business hours and
may obtain copies of the records to audit returns.
D.
Authority
of Tax Administrator. The tax administrator shall have the power to
enforce this chapter, conduct audits, and to adopt rules, regulations
and forms consistent with this chapter. Rules and regulations of general
application shall be mailed to all registered operators. The tax administrator
may also issue written interpretations on request of a local tax trustee.
As to the local tax trustee to whom the interpretation is issued,
the city will act consistently with the interpretation until it is
withdrawn, and the city shall provide 30 days' written notice of withdrawal
of an interpretation.
E.
Confidential
Character of Information Obtained—Disclosure Unlawful. The city
shall maintain the confidentiality of information provided by local
tax trustees. Nothing in this subsection shall be construed to prevent:
1.
The
disclosure to, or the examination of records and equipment by, another
city official, employee or agent for collection of taxes for the purpose
of administering or enforcing any provisions of this chapter or collecting
city business license fees.
2.
Disclosure
of information to the local tax trustee and the local tax trustee's
agents.
3.
The
disclosure of the names and addresses of any persons to whom certificates
of authority have been issued.
4.
The
disclosure of general statistics regarding taxes collected or business
done in the city.
5.
Disclosures
required by ORS Chapter 192.
6.
Disclosures
required by ORS Chapter 297.
(Ord. 6242 § 1, 2017)
Any person aggrieved by any decision of the tax administrator
may appeal to the city council by filing a written appeal with the
tax administrator within 10 business days of the serving or mailing
of the decision being appealed. The city manager shall schedule the
hearing on a city council agenda and provide the appellant notice
of the hearing at least 10 business days before the hearing. The city
council may agree to a compromise of the amount of tax remittance
if there is a good faith dispute over the amount owing. Any person
may appeal the issuance of a rule or regulation issued by the tax
administrator to the city council by filing a written appeal within
10 business days of the mailing of the notice of the regulation.
(Ord. 6242 § 1, 2017)
A violation of this chapter is a civil infraction as provided
in HMC Subchapter 1.08. Each day that a violation remains uncured
is a separate infraction. In addition to and not in lieu of a civil
infraction proceeding, the city may enforce compliance with this ordinance
by filing an action for an injunction, appointment of a receiver or
any other relief provided by law.
(Ord. 6242 § 1, 2017)
This subchapter shall expire on July 1, 2027, unless renewed
through an official action of the city council.
(Ord. 6242 § 1, 2017)
