The Travel Technology Association : The Travel Technology Association: Oregon
Legislature Passes Sweeping New Taxes on Hotels, Vacation Homes, Travel Agents
and Online Travel Companies
Contact: Robin Reck, Director of Communications
Oregon Legislature Passes Sweeping New Taxes on Hotels, Vacation Homes, Travel
Agents and Online Travel Companies
Broad Legislation Will Now Apply New Taxes to Oregon Hotel Resort Fees,
Internet Fees, Cleaning Fees, Travel Agent and Online Travel Company Service
Salem, OR, June 28, 2013 - With the passage of House Bill 2656, Oregon is
poised to enact extensive and far-reaching new lodging taxes on hotels,
vacation home owners, travel agents and online travel companies which will
undoubtedly lead to higher prices for travel consumers. The fate of the tax
bill now resides with Governor John Kitzhaber, and would result in an
aggressive tax plan to extend the state lodging tax (and applicable local
lodging taxes) to a variety of services, including cleaning fees for vacation
rentals, hotel resort fees and service fees by travel agencies.
According to the Oregon Legislative Revenue Office's (LRO) 2013 analysis of
the scope of the new taxes includes "resort fees, internet fees and cleaning
fees for some resorts and vacation rentals." According to the LRO, "those
added fees that are not optional should all be subject to the tax." The
thousands of Oregonians with vacation homes and rentals appear to also have
been netted by the proposed law. The LRO report adds, "Vacation homes and
rentals will also be obligated to use the retail price which is inclusive of
cleaning fees and other services."
For the approximately 150 brick-and-mortar travel agencies operating in Oregon
and the thousands of out-of-state traditional travel agents and online travel
companies, Oregon transient lodging taxes could apply to their service
compensation as well. "If this plan is signed into law, the Lewis and Clark
trail will only lead to more taxes on the travel industry and more taxes on
tourists, including Oregon residents who vacation or travel in-state," said
Robin Reck, communications director for the Travel Technology Association.
About Travel Tech
The Travel Technology Association, or Travel Tech, is the association for
online travel companies (OTCs) and global distribution systems (GDSs), and is
dedicated to connecting consumers and travel providers, eliminating barriers
to travel and protecting consumers. Travel Tech's members include: Amadeus,
Expedia, Orbitz Worldwide, Priceline, Travelocity, Travelport and Vegas.com.
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