HomeMy WebLinkAboutOrdinance 6445 06/20/2022 CITY OF SPRINGFIELD, OREGON
ORDINANCE NO. 6445 (GENERAL)
AN ORDINANCE AMENDING THE SPRINGFIELD MUNICIPAL CODE
SECTIONS 7.700 TO 7.724, 7.728, 7.732 AND 7.736, AND REPEALING SECTIONS 7.726,
7.730, 7.734 AND 7.738 REGARDING TRANSIENT LODGING TAX
WHEREAS, a local transient lodging tax is a tax imposed by a local government on the sale, service or
furnishing of transient lodging;
WHEREAS, transient lodging includes hotel, motel and inn dwelling units that are used for temporary
overnight human occupancy; spaces used for parking recreational vehicles or erecting 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;
WHEREAS, the City of Springfield imposes a four percent and one-half percent (4.5%) local transient
lodging tax, adopted via Ordinance 5439 on July 5, 1988, which is allocated 44.4% to tourism
promotion and tourism-related facilities;
WHEREAS, under ORS 320.350(3), the City may not decrease the percentage of transient lodging tax
revenues that are actually expended to fund tourism promotion and tourism-related facilities on or
after July 2, 2003;
WHEREAS, in 2017, the Oregon legislature adopted House Bill 2400 to allow the Oregon Department
of Revenue to collect local transient lodging taxes on behalf of cities;
WHEREAS, the Oregon Department of Revenue and League of Oregon Cities have developed a model
local transient lodging tax ordinance to align administrative components of cities'transient lodging
taxes to allow the Oregon Department of Revenue to collect on behalf of the city adopting the model
ordinance upon entering into an intergovernmental agreement; and
WHEREAS, the Common Council has determined that it is in the public interest to enter into an
intergovernmental agreement with the Oregon Department of Revenue to collect transient lodging tax
in Springfield on behalf of the City of Springfield and therefore, the Council wishes to amend the
existing transient lodging tax ordinance to align with the model ordinance,
NOW, THEREFORE, THE COMMON COUNCIL OF THE CITY OF SPRINGFIELD ORDAINS AS FOLLOWS:
Section 1: Section 7.700 of the Springfield Municipal Code is hereby amended to read as
follows:
"7.700 Definitions.
The following words and phrases as used in sections 7.700-7.738 mean:
(1) Transient Lodging Provider. A person that furnishes transient lodging.
(2) Transient Lodging Intermediary. A person other than a transient lodging provider that
facilitates the retail sale of transient lodging and:
(a) Charges for occupancy of the transient lodging;
(b) Collects the consideration charged for occupancy of the transient lodging; or
(c) 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.
(3) Transient Lodging Tax Collector. A transient lodging provider or transient lodging
intermediary.
(4) 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.
(5) 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.
(6) 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.
(7) 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.
(8) 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.
(9) 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.
(10) 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.
(11) Transient Lodging or Transient Lodging Facilities:
(a) Hotel, motel, and inn dwelling units that are used for temporary overnight
human occupancy;
(b) Spaces used for overnight parking of recreational vehicles or placement of tents
during periods of human occupancy; or
(c) Houses, cabins, condominiums, apartment units or other dwelling units, or
portions of any of these dwelling units that are used for temporary human occupancy.
(12) TLT or tax. The transient lodging tax."
Section 2. Section 7.702 of the Springfield Municipal Code is hereby amended to read:
"7.702 Tax Imposed.
(1) Each occupant shall pay a TLT in the amount of four and one-half percent (4.5%) 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 3. Section 7.704 of the Springfield Municipal Code is hereby amended to read:
"7.704 Collection of Tax by Transient Lodging Tax Collector.
(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 4. Section 7.705 of the Springfield Municipal Code is hereby added to read:
"7.705 Short-Term Rental Hosting Platform Fees.
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 5. Section 7.706 of the Springfield Municipal Code is hereby amended to read:
"7.706 Liability for Tax.
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 6. Section 7.708 of the Springfield Municipal Code is hereby amended to read:
"7.708 Exemptions.
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. Section 7.710 of the Springfield Municipal Code is hereby amended to read:
"7.710 Registration of Transient Lodging Provider— Form and Contents— Execution —
Certification of Authority.
(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 8. Section 7.712 of the Springfield Municipal Code is hereby amended to read:
"7.712 Remittances and Returns
(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 9. Section 7.714 of the Springfield Municipal Code is hereby amended to read:
"7.714 Penalties and Interest.
(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 10. Section 7.716 of the Springfield Municipal Code is hereby amended to read:
"7.716 Deficiency Determination — Fraud, Evasion, Local Tax Trustee Delay.
(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 11. Section 7.718 of the Springfield Municipal Code is hereby amended to read:
"7.718 Redeterminations.
(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 12. Section 7.720 of the Springfield Municipal Code is hereby amended to read:
"7.720 Collections.
(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 13. Section 7.722 of the Springfield Municipal Code is hereby amended to read:
"7.722 Liens.
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 14. Section 7.724 of the Springfield Municipal Code is hereby amended to read:
"7.724 Refunds.
(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 15. Section 7.728 of the Springfield Municipal Code is hereby amended to read:
"7.728 Administration.
(1) Use of TLT Funds. No less than forty-four and four tenth percent (44.4%) of the
revenue from the tax rate of four and one-half percent (4.5%) 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 16. Section 7.732 of the Springfield Municipal Code is hereby amended to read:
"7.732 Appeals to City Council.
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 17. Section 7.736 of the Springfield Municipal Code is hereby amended to read:
"7.736 Penalty.
A violation of this chapter is a Class A civil infraction. Each day that a violation remains uncured
is a separate infraction."
Section 18. Section 7.726, 7.730, 7.734, and 7.738 are repealed as of the effective date of this
ordinance.
Section 19. Savings Clause. Except as specifically amended herein, Chapter 7 of the Springfield
Municipal Code shall continue in full force and effect.
Section 20. Severability Clause. If any section, subsection, sentence, clause, phrase or portion
of this Ordinance is, for any reason, held invalid or unconstitutional by a court of competent
jurisdiction, such portion shall be deemed a separate, distinct and independent provision and such
holding shall not affect the validity of the remaining portion hereof.
Section 21. Effective date of Ordinance. This Ordinance will become effective on July 1, 2022
or 30 days following adoption by the Council and approval by the Mayor, whichever is later.
ADOPTED by the Common Council of the City of Springfield this 20thday of June , 2022,
by a vote of 5 for and 0 against. (1 Absent - Pishioneri)
APPROVED by the Mayor of the City of Springfield this 20th day of June , 2022.
Mayor
ATTEST:
City Recorder
REVIEWED&APPROVED
AS TO FORM
Kn stu e�-kF'aa�r
DATE:
S PRIRGFIELD CITY ATTORNEY'S OFFICE