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Troutdale council adopts ordinance to collect transient lodging tax from short-term rentals

City of Troutdale City Council and Urban Renewal Agency ยท January 14, 2026

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Summary

The council approved a second-reading ordinance requiring remittance of Troutdale's transient lodging tax on short-term rentals. Council discussed allocation of the 6% local portion and whether earmarking revenues should be handled through the budget process.

Troutdale's City Council unanimously adopted an ordinance on Jan. 13 amending the municipal code to require remittance of the city's transient lodging tax (TLT) on short-term rentals.

City staff explained the city's local TLT totals 6.95% of lodging charges: 6.00% to the city (general fund) and 0.95% earmarked for tourism promotion. County and state lodging taxes are separate; staff said Multnomah County and the State of Oregon collect additional TLT levies that the city does not control. "We are not proposing any changes to the city's local tax," staff said, noting the ordinance only updates remittance requirements for short-term rental operators.

During council discussion, one councilor said he would prefer to earmark the 6% city portion for police and fire to address public safety shortfalls. He said the 6% would "roughly be about $100,000 a year" in revenue. Other council members and staff responded that dedicating revenues is more appropriately decided through the formal budget process rather than via ordinance action. A councilor advising caution said the TLF history and some local portions predate state law and any change to dedicated uses should go through budget deliberations.

No members of the public spoke against or for the ordinance at the second reading. Councilor Andrews moved to adopt the ordinance; the motion was seconded and passed on roll call with affirmative votes recorded.

The ordinance updates Title 3 (Revenue and Finance) of the municipal code to clarify transient lodging tax remittance responsibilities for short-term rental operators. City staff estimated the city portion could produce approximately $100,000 annually, depending on occupancy and market conditions. The change takes effect in accordance with the ordinance's effective date and municipal code procedures.