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- Subscribe - Contact Us - Rate Card - Place an Ad Archives Revels Classifieds Real Estate Menu Guide Wedding Weather Subscribe Contact Us December 29, 2005 Rental tax kicks in on Jan. 1 Vacation homes will be required to register, pay By Robert Plain Ashland Daily Tidings Starting on the first day of the new year, renting out a house to tourists will become more expensive in Oregon as the state will begin to require vacation rental homes to pay a 1 percent lodging tax. Since 2004, Oregon has charged hotels, motels, B&B’s, resorts, inns, cabins, condos and RV spaces 1 percent of their gross sales to be used to promote tourism state-wide. Starting January 1, vacation rental homes will also be responsible for paying into this lodging tax. “If you own a vacation home that you rent out, you must register with the Oregon Department of Revenue,” according to a press release from the state revenue department. There are anywhere from 20 to 50 vacation rental homes available to rent for a vacation in Ashland, according to Helen Macfarlane, owner of the Ashland B&B Network, a business that books rooms and accommodations for many of the tourist accommodations in the city. But Macki Grafton, who manages two of the vacation rental homes in Ashland, isn’t sure how the state will compel these businesses to comply with the new law. “I’m sure there are many people who are not going to pay that,” she said. “There are a lot of people who are getting away with it.” Vacation rental homes are already required to pay into the city transient occupancy tax, which is 7 percent of all sales. They must register with the city, as they soon will be required to do so with the state as well. But because the industry is so nebulous it is often difficult to monitor who is involved, let alone get them to register, said Ashland Finance Director Lee Tuneberg. Rosemary Hardin, a public information officer with the department of revenue, said the state does have a method of forcing business owners to register and pay the tax. She said, “If we find out someone is not complying we would treat them the same as someone who does not pay their income tax.” Hardin added that it is in the best interest of people in the tourism business to pay the tax because the proceeds will go to promoting Oregon tourism. “It’s good for their business to get the word out,” she said. “It will bring more people to the state.” Tim Rutter, co-owner of the Jessel House, a three-bedroom home that can be rented out by the night in Ashland, said he has no qualms paying the new tax. “We’re all basically in the same business,” he said. “If (hotels, motels and B&B’s) get taxed, why not us.” He added that he doesn’t expect the tax will affect his business. “When the city added the 7 percent room tax it didn’t affect us much,” he said. “Most people expect to pay some kind of tax.” But Grafton said some people rent their homes as tourist destinations while they are away on a vacation themselves. She doesn’t feel it is fair to treat these people just like people who are in business all year. There are exemptions to the new state tax, including those who rent out their homes for less than 30 days a year. The tax will be collected when the customer pays the vacation rental fee and businesses will be required to turn over those funds to the state quarterly. Registration forms are available online at www.oregon.gov/DOR/BUS. For additional information, the department of revenue can be reached at (503)945-8565. Staff writer Robert Plain can be reached at 482-3456 x 226 or [email protected]. DailyTidings.com Home Page Archives | Revels | Classifieds | Real Estate Guide | Weather | Subscribe | Contact Us Copyright 2005 Ashland Daily Tidings and Ottaway Newspapers All Rights Reserved Deep Muscle Stimulator Ceramic Piggy Banks FREE Entertainment Guide Women's & Men's Slippers Accelerate Weightloss Products Backpacks Generic Viagra Vegas Travel Guide Search Engine Optimization Sportsbook Absinthe Supply Student Loans Hotel & Airline Reservations African Safari Hammocks Helzberg Diamonds Online Casinos Community Bonus Casino King of Spirits ink cartridges Mortgage Calculator Security Systems Mailing Lists Click Here Advertisement .:Advertisements:. Site Search: RESOURCES - Mail Tribune News - ODOT Road Cams