Baker City council adopts updated transient lodging tax ordinance, creates TLT review committee

Baker City Council voted unanimously on June 10 to adopt Ordinance No. 3410, amending Chapter 111 of the Baker City Code to implement a 7% transient lodging tax (TLT) and establish rules for collection, registration, exemptions and distribution of revenue.

The ordinance sets the tax rate at 7% effective July 1, 2025; defines transient lodging providers, intermediaries and hosting platforms; requires registration and a visible certificate of authority at point of sale; establishes filing and remittance schedules; and prescribes penalties, interest and lien procedures for delinquent collectors. The ordinance also designates 70% of revenue for tourism promotion and related facilities, 25% to the general fund, and 5% for tax administration, and repeals earlier local ordinances listed in the ordinance text.

City staff presented the ordinance text, noting changes since the prior meeting: replacing the term “operator” with “TLT tax collector,” adding ORS cross-references where applicable, requiring a city staff member to keep minutes for the TLT review committee, and removing a downtown organization’s ex officio seat. The council opened a public hearing, heard no public testimony on the ordinance, and proceeded with readings. The council ordered a first reading in full, later agreed by unanimous vote present to perform the second reading by title only, and then moved to adopt the ordinance. Council members voted unanimously to approve Ordinance No. 3410.

The ordinance creates a five-member Transient Lodging Tax Review Committee composed of lodging providers, a food-service operator, a hospitality operator and two at-large members, with staggered terms. The committee will prepare an annual budget recommendation for tourism promotion to the city council and is charged with developing and overseeing Baker City’s tourism marketing plan; the ordinance also requires the committee members to follow the state government ethics law cited in the ordinance.

The ordinance lists several exemptions, including stays in licensed health-care or long-term-care facilities, nonprofit youth or church camps, and stays of 30 consecutive days or more. It also establishes recordkeeping requirements—TLT tax collectors must retain guest and rent records for at least three years and six months—and empowers the tax administrator (identified in the ordinance as the city finance director) to audit returns, issue deficiency determinations, impose penalties and collect delinquent amounts through lien and legal action.

City staff said the city has contacted known short-term rental operators and lodging providers about registration; staff reported receiving registration forms from roughly half of known providers and that outreach continues. The ordinance sets reporting and remittance deadlines and allows collectors to retain a 5% administrative fee to cover collection costs. The ordinance becomes effective July 1, 2025.

Councilors discussed procedural wording corrections in the ordinance (for example, a heading correction in Section 18), and one councilor expressed general opposition to a lodging tax earlier in the meeting but the final recorded vote was unanimous for adoption. The council did not adopt additional amendments at the June 10 meeting.

Next steps: city staff will continue outreach to lodging operators to complete registrations, implement the certificate-of-authority process, and begin administering monthly returns and remittances as specified by the new Chapter 111.