Local Lodging Administration January 22 2021 Marcus Cridge

Local Lodging Administration January 22, 2021 Marcus Cridge

Local Lodging Administration What you need to know 2

HB 2400 amends ORS 305. 620 allowing units of local government to enter into an agreement to allow DOR to administer their local lodging taxes. DOR will provide: • Collection, • Filing enforcement, • Audit, • Quarterly Activity reports, and • Distribution of local taxes. HB 2400 may be found here: https: //olis. oregonlegislature. gov/liz/2017 R 1/Measures/Overview/HB 2400

Quarterly Activity reports include: Number of returns and the quarter and year for which they were filed. Number of returns and the quarter and year for which they were amended. Number of failures to file assessments and the quarter and year to which they applied. Number of audits or adjustments and the quarter and year to which they applied. Exemptions reported. Gross receipts. Local tax due. Tax amount paid with return. Demographic data provided. Cost for administration to local by dollar and percentage. Dollars directed to local government.

Process for participating Review Inter Governmental Agreement (IGA) • For a copy of our IGA please email: tera. l. lum@oregon. gov • Ensure local ordinances permit for DOR collection activities • Review League of Cities Legal Guide to Collecting Lodging Tax in Oregon • Provide DOR with ordinances for additional review. • Areas where changes may be necessary often include penalty and interest amounts for late file/late payment, assessment and audit authority, collection with warrant/garnishment. • Submit Completed IGA to DOR. We will begin tax administration of your local lodging tax on the first day of the following quarter after you sign up. • Example: If the IGA is finalized in March 2021, we will begin administering a locality’s tax in the second quarter for tax for returns due July 2021.

Cost Our first-year administration cost will not exceed $175 per filer for your location. This cost will be recovered from the proceeds of the local tax roughly in an amount of $43. 45 per filer per quarter. The cost is calculated based on the number of participants that participate in the program. With more localities participating the Department anticipates a lower cost per filing.

Filing Starting with 2021 filings. For 2020 filings you must use existing form. • Form-OR-TLT: Combined State Lodging Tax and Local Lodging Tax • Schedules OR TLT-2 and OR-TLT-3 • File using Revenue Online • Until next month (February 2021) everything will look the same as it always has. • Web page, filing forms, communications. • Returns for tax periods before Q 1 2021 will be on the previous version and local taxes will not be supported for historic tax filing.

General Information and Questions If you decide not to participate in local lodging administration, we still request that you send us your current local lodging rate and contact information for taxpayers. Please send this information to tera. l. lum@oregon. gov • LOC Legal Guide to Collecting Lodging Tax in Oregon: https: //www. orcities. org/application/files/8715/8155/3494/TLT_Guide__Updated_Feb_2020. pdf • Contact us at spa. help@oregon. gov or (503) 945 -8120 • Website: https: //www. oregon. gov/dor/program/busienss/Pages/lodging. aspx • General tax information: http: //www. oregon. gov/dor (503) 378 -4988 or (800) 356 -4222 questions. dor@oregon. gov • Marcus. Cridge@Oregon. gov

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