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Troutdale staff proposes code changes to collect city transient lodging tax from short-term rentals

5951477 · October 15, 2025

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Summary

City staff told council that short-term rentals (Airbnb/VRBO) are growing and that many hosting platforms do not remit the city's transient lodging tax; staff proposed draft code changes to require registration, authorize third-party collection and close an estimated $326,000 remittance gap since 2021.

Marley Boxler, Troutdale’s economic development coordinator, presented an overview of the city’s transient lodging tax (TLT) and the growth of short-term rentals in Troutdale. Boxler said the city’s existing TLT is layered: a 1.5% state tax, a 5.5% Multnomah County tax and a 6.95% City of Troutdale tax. The city historically collected TLT from hotels and some online travel platforms but has not enforced collection from third-party short-term rental (STR) platforms for city tax.

Boxler told council hotel revenues have grown 59% since 2021 and that short-term rental revenue has grown 238% in the same period. She said the city estimates it has not collected roughly $326,303 in city lodging tax since 2021 because third-party hosting sites remit state and county taxes but not the city portion without explicit municipal code authorization.

Staff proposed a draft code amendment that would (1) clarify definitions related to short-term rentals; (2) authorize third-party platforms to collect and remit the city’s TLT on behalf of hosts; (3) create a short-term rental registration requirement so the city can identify properties for enforcement and promotion; and (4) keep the city’s tax rates unchanged while improving collection. Boxler said Troutdale currently lists five hotels and had about 46 short-term rental listings as of August, with seasonal fluctuation.

Councilors asked about business-license thresholds (staff said hosts must take a business license only if they operate four or more rental properties), enforcement examples from other cities (staff said most Oregon cities include third-party collection language), and whether short-term rentals would be promoted by the city if they start remitting TLT (staff said the city could include registered STRs in tourism promotion). Boxler said staff planned to return with a draft ordinance for council review with implementation aimed for early 2026.

Ending: Council did not vote; staff will draft the municipal code amendment and return with an ordinance for consideration and implementation timelines.