The following words and phrases as used in SMC sections
7.700 to 7.738 mean: Occupancy. The right to the use or possession of any space in transient lodging for dwelling, lodging or sleeping purposes for less than 30 days.
Occupant.
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.
Person.
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.
Rent.
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.
Short-Term Rental.
A house, duplex, multi-plex, apartment, condominium, houseboat,
trailer or other residential dwelling unit where a person rents a
guest bedroom 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.
Short-Term Rental Hosting Platform.
A business or other person that facilitates the retail sale
of transient lodging by connecting occupants with transient lodging
providers, either online or in any other manner. Short-term rental
hosting platforms are transient lodging intermediaries.
Tax Administrator.
The finance director of the city of Springfield, or its designee,
which may include the Oregon Department of Revenue. If the city utilizes
the Oregon Department of Revenue as its tax administrator, it will
comply with ORS 305.620 in that it will follow the rules adopted by
the Department of Revenue regarding the administration, collection,
enforcement and distribution of transient lodging taxes.
Transient Lodging or Transient Lodging Facilities:
(1)
Hotel, motel, and inn dwelling units that are used for temporary
overnight human occupancy;
(2)
Spaces used for overnight parking of recreational vehicles or
placement of tents during periods of human occupancy; or
(3)
Houses, cabins, condominiums, apartment units or other dwelling
units, or portions of any of these dwelling units that are used for
temporary human occupancy.
Transient Lodging Intermediary.
A person other than a transient lodging provider that facilitates
the retail sale of transient lodging and:
(1)
Charges for occupancy of the transient lodging;
(2)
Collects the consideration charged for occupancy of the transient
lodging; or
(3)
Receives a fee or commission and requires the transient lodging
provider to use a specified third-party entity to collect the consideration
charged for occupancy of the transient lodging.
[Section 7.700 amended by Ordinance No. 6357, enacted October 17, 2016; further
amended by Ordinance No. 6445, enacted June
20, 2022]
(1) Each
occupant shall pay a TLT in the amount of four and one-half percent
of the rent. The occupant shall pay the TLT with the rent to the transient
lodging tax collector. TLT amounts shall be rounded down to the nearest
cent. The transient lodging tax collector 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 transient lodging tax collector with each installment unless the
occupant pays the entire amount with the first payment.
(2) Bills,
receipts or invoices provided to occupants shall list the 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.
[Section 7.702 amended by Ordinance No. 6445, enacted June 20, 2022]
(1) Every
transient lodging tax collector 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 the transient lodging tax collector,
not when the transient lodging tax collector ultimately receives credit
for the transaction. While holding the payment in trust for the city,
a transient lodging tax collector may commingle the tax proceeds with
the transient lodging tax collector’s funds, but the transient
lodging tax collector is not the owner of tax proceeds, except that,
when a return is filed, the transient lodging tax collector becomes
the owner of the administrative fee authorized to be retained. Transient
lodging tax collectors may choose to file returns and remit payment
based on amounts accrued but not yet collected. The transient lodging
tax collector is liable for any TLT that should have been collected
from the occupant, except in cases of nonpayment of rent by the occupant.
(2) Upon
request of the city, transient lodging tax collectors 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.
[Section 7.704 amended by Ordinance No. 6445, enacted June 20, 2022]
A hosting platform for short-term rentals may collect a fee
for booking services in connection with short-term rentals only when
those short-term rentals are lawfully registered as operators with
the city and possess a certificate of authority at the time the short-term
rental is occupied.
[Section 7.705 added by Ordinance No. 6445, enacted June 20, 2022]
Transient lodging providers who receive any portion of the rent
for transient lodging and transient lodging intermediaries that provide
booking service are both transient lodging tax collectors and are
jointly and severally liable for the tax.
[Section 7.706 amended by Ordinance No. 6357, enacted October 17, 2016; further
amended by Ordinance No. 6445, enacted June
20, 2022]
No TLT shall be imposed upon:
(1) A dwelling
unit in a hospital, health care facility, long-term care facility
or any other residential facility that is licensed, registered or
certified by the Oregon Department of Human Services or the Oregon
Health Authority;
(2) A dwelling
unit in a facility providing treatment for drug or alcohol abuse or
providing mental health treatment;
(3) A dwelling
unit that is used by members of the general public for temporary human
occupancy for fewer than 30 days per year;
(4) A dwelling
unit, the consideration for which is funded through a contract with
a government agency and the purpose of which is to provide emergency
or temporary shelter;
(5) A dwelling
unit at a nonprofit youth or church camp, nonprofit conference center
or other nonprofit facility; or
(6) A dwelling
unit that is leased or otherwise occupied by the same person for a
consecutive period of 30 days or more during the year. The requirements
of this subsection are satisfied even if the physical dwelling unit
changes during the consecutive period, if:
(a) All
dwelling units occupied are within the same facility; and
(b) The
person paying consideration for the transient lodging is the same
person throughout the consecutive period.
[Section 7.708 amended by Ordinance No. 5892, enacted June 15, 1998; further
amended by Ordinance No. 6357, enacted October
17, 2016; further amended by Ordinance
No. 6445, enacted June 20, 2022]
(1) Every
person engaging or about to engage in business as a transient lodging
provider shall provide a completed registration form to the tax administrator
within 15 calendar days after commencing business. The registration
form shall require the transient lodging provider to provide the name
of the business, any separate business addresses, and other information
as the tax administrator may require to implement this chapter. Transient
lodging providers who own or operate transient lodging facilities
in the city of Springfield shall provide the address of the lodging
facility. The registration form shall be signed by the transient lodging
provider. The tax administrator shall, within 15 days after registration,
issue without charge a certificate of authority to collect the TLT.
The transient lodging provider’s 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 the rent transaction is facilitated online, the certificate of
authority must be able to be viewed by the occupant by clicking on
a link to the certificate of authority at a reasonable place during
the payment transaction.
(2) Certificates
shall be non-assignable and non-transferable and shall be surrendered
to the tax administrator when the business is sold or transferred
or when a transient lodging facility ceases to operate at the location
specified in the registration form. Each certificate issued to a transient
lodging provider for a specific lodging facility shall be prominently
displayed at the lodging facility and include:
(a) The
name of the transient lodging provider;
(b) The
address of the transient lodging facility;
(c) The
date the certificate was issued; and
(d) The
certificate number as assigned by the tax administrator.
[Section 7.710 amended by Ordinance No. 6445, enacted June 20, 2022]
(1) Transient
lodging tax collectors must submit a completed tax return form to
the tax administrator on or before the last day of the month following
the end of each calendar quarter, reporting the amount of tax due
during the quarter and accompanied by remittance of all tax collected,
less a five percent administration fee. The return shall be filed
in such form as the tax administrator may prescribe. The tax administrator
if they deem it necessary in order to insure payment or facilitate
collection by the city of the amount of taxes in any individual case,
may require returns and payment of the amount of taxes on other than
monthly periods.
(2) The
transient lodging tax collector is entitled to the administration
fee. If a transient lodging facility has multiple owners, they are
not entitled to retain additional fees.
(3) Remittances
are delinquent if not made by the last day of the month in which they
are due.
(4) 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 transient lodging tax collector. Returns shall also show the
exempt and excluded rents and the basis for exemptions and exclusions.
(5) The
person required to file the return shall deliver the return, together
with payment of the amount of the tax due, to the tax administrator,
to the appropriate office, either by personal delivery, by mail, or
by electronic tax return filed through a reporting and payment portal
furnished by the tax administrator, or its designee. If the return
is mailed, the postmark shall be considered the date of delivery.
(6) 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 transient lodging tax collector 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.
[Section 7.712 amended by Ordinance No. 6445, enacted June 20, 2022]
(1) Interest
shall be added to the overall tax amount due at the same rate established
under ORS 305.220 for each month, or fraction of a month, from the
time the return to the tax administrator was originally required to
be filed to the time of payment.
(2) If a
transient lodging tax collector fails to file a return or pay the
tax as required, a penalty shall be imposed in the same manner and
amount provided under ORS 314.400.
(3) Every
penalty imposed, and any interest that accrues, becomes a part of
the financial obligation required to be paid and remitted to the tax
administrator.
(4) Taxes,
interest, and penalties paid to the tax administrator under this section
shall be distributed to the city’s transient lodging tax fund.
[Section 7.714 amended by Ordinance No. 6445, enacted June 20, 2022]
(1) 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 transient lodging tax collector,
who shall remit deficiencies within 10 business days of the deficiency
notice. Notice may be by personal delivery or certified or registered
mail.
(a) 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.
(b) 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.
(c) The
time to remit deficient payment amounts under this section shall be
extended if the local tax trustee timely requests a redetermination.
(2) Fraud—Refusal
to Collect—Evasion. If any transient lodging tax collector 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 transient lodging tax collector for tax remittance,
interest and penalties and provide notice to the transient lodging
tax collector of the assessment. 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
upon receipt of notice and shall become final 10 business days after
the date notice was delivered if no petition for redetermination is
filed.
[Section 7.716 amended by Ordinance No. 6445, enacted June 20, 2022]
(1) Any
person affected by a deficiency 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.
(2) 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 petitioner shall be allowed at least
20 business days to prepare for the hearing.
(3) After
considering the petition and all available information, the tax administrator
shall issue a redetermination decision and mail the decision to the
petitioner. During the redetermination process, the tax administrator
may agree to a compromise of the amount due if there is a good faith
dispute over the amount owing.
(4) 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.
[Section 7.718 amended by Ordinance No. 6445, enacted June 20, 2022]
(1) 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.
(2) 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.
[Section 7.720 amended by Ordinance No. 6445, enacted June 20, 2022]
The city may record a lien in the city’s lien docket against
any real property owned by a transient lodging provider who receives
any portion of the rent from a transient lodging facility located
within the city as to any delinquent remittances by the transient
lodging provider.
[Section 7.722 amended by Ordinance No. 6445, enacted June 20, 2022]
(1) Refunds
by City to Transient Lodging Tax Collector. If the transient lodging
tax collector remits more tax, penalty or interest than is due, the
transient lodging tax collector may file a claim in writing stating
the facts relating to the claim, within three years 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 transient lodging tax collector.
(2) Refunds
by City to Occupant. A transient lodging tax collector may file a
claim for refund by filing a claim in writing within three years of
payment providing the facts relating to the claim for refund. If the
tax administrator determines that the tax was collected and remitted
to the city and the occupant was not required to pay the tax or overpaid,
the city shall issue a refund to the occupant.
(3) Refunds
by Transient Lodging Tax Collector to Occupant. If an occupant has
paid tax to a transient lodging tax collector but stays a total of
30 or more consecutive days in the same transient lodging facility,
the transient lodging tax collector shall refund to the occupant any
tax collected for any portion of the continuous stay. The transient
lodging tax collector shall account for the collection and refund
to the tax administrator. If the transient lodging tax collector has
remitted the tax prior to the refund or credit to the occupant, the
transient lodging tax collector shall be entitled to a corresponding
refund or offset if the claim for refund is filed within three years
from the date of collection.
(4) Burden
of Proof. The person claiming the refund shall have the burden of
proving the facts that establish the basis for the refund.
[Section 7.724 amended by Ordinance No. 6445, enacted June 20, 2022]
(1) Use
of TLT Funds. No less than 44.4% of the revenue from the tax rate
of four and one-half percent shall be used for tourism promotion and
tourism-related facilities.
(2) 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.
(3) 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.
(4) 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 transient lodging providers.
The tax administrator may also issue written interpretations on request
of a transient lodging tax collector. As to the transient lodging
tax collector 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.
(5) Confidential
Character of Information Obtained—Disclosure Unlawful. The city
shall maintain the confidentiality of information provided by transient
lodging tax collector. Nothing in this subsection shall be construed
to prevent:
(a) 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.
(b) Disclosure
of information to the transient lodging tax collector and the transient
lodging tax collector’s agents.
(c) The
disclosure of the names and addresses of any persons to whom certificates
of authority have been issued.
(d) The
disclosure of general statistics regarding taxes collected or business
done in the city.
(e) Disclosures
required by ORS Chapter 192.
(f) Disclosures
required by ORS Chapter 297.
[Section 7.728 amended by Ordinance No. 6445, enacted June 20, 2022]
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.
[Section 7.732 amended by Ordinance No. 6445, enacted June 20, 2022]
A violation of this chapter is a Class A civil infraction. Each
day that a violation remains uncured is a separate infraction.
[Section 7.736 amended by Ordinance No. 6445, enacted June 20, 2022]