Transient Lodging Tax

The City of Gladstone requires all short term rentals (including but not limited to hotels, Air BnB, VRBO as well as other short term rental sites) to have a City of Gladstone Business License. The property owner is also responsible for remitting the Transient Lodging Tax by the last business day of the month following the end of each calendar quarter. Please keep in mind, not all short term rental sites remit to the City on your behalf. Please contact them to confirm they remit to the City of Gladstone.

Since the 1940s, the state has allowed local governments to collect a transient lodging tax (TLT) on all overnight stays in the city, including hotels, motels, campgrounds, retreat centers, RV parks, bed and breakfasts, vacation rentals, and short-term rentals.  State statute requires at least 70% of the tax dollars collected be used for tourism promotion or tourism-related facilities and not more than 30% of tax revenue be used for city services.  Gladstone is the only jurisdiction in Clackamas County that does not collect a TLT, however at the November 14th Council meeting, city officials implemented a 6% tax that will go into effect January 1st, 2018. This means the two hotels located in Gladstone and any short-term rentals will be required to collect the tax and remit it to the City.

Statewide Regulation

The Oregon legislature first began regulating TLTs in 2003, and then made changes and expansions to the original law in 2005 and 2013. In 2003, the Oregon Legislature created the Oregon Tourism Commission. The law required the Oregon Tourism Commission to use at least 80 percent of the state-wide tax revenue to fund state tourism and marketing programs and up to 15 percent to implement regional tourism marketing programs.

In 2005, the Oregon Legislature amended state law to include more than just hotels, motels, inns and camping spots, but also houses, cabins, condominiums, apartment units or other dwelling units, or portions of any of these dwelling units that are used for temporary human occupancy.

Most recent Changes and Challenges

In 2013, legislation was passed to address the growing number of online travel companies facilitating transient lodging, and the most recent challenge for local governments is the growing prevalence of residents engaging in short-term rentals, i.e. individuals or “hosts”, who list their homes, or a room in their homes on a website such as Airbnb or HomeAway and allow “guests” to stay with them and charge rent. These rentals are also subject to the TLT. The problem is that hosts are often not individuals in the tourism industry, may not be aware of the tax, and their rental may not be allowed by local jurisdictions.

The proposed ordinance for Gladstone has language that covers short term rentals and online travel companies. The City will regularly monitor the names and addresses of Gladstone homeowners that list their availability as short-term renters on these online platforms and notify them of the applicability of the new tax. We ask that if you are one of these homeowners you will voluntarily comply.

This year the City adopted its first citywide parks master plan to provide a logical blueprint for the management of the parks system.  It is sad that Gladstone doesn’t even have a brochure to promote its many high quality, community-driven parks, trails, open spaces and recreational opportunities. The City will collect funds for a year before spending any of the revenue, which will allow time for the Council to create an “advisory” committee to prepare a marketing plan, and perhaps we will finally get that brochure….

Below is a copy of the adopted Ordinance.