The Talent City Council is poised to revamp its transient room tax regulations, aiming to enhance revenue collection from short-term rentals. During the May 7, 2025, meeting, city staff highlighted concerns that the current tax framework, in place since 1992, is outdated and likely under-collecting due to the rise of platforms like Airbnb.

The proposed changes include adopting clearer language in the municipal code to ensure that intermediaries, such as online rental services, are required to collect and remit the tax. This move follows recent clarifications from the Oregon legislature, which have empowered cities to enforce these requirements more effectively.

In a significant shift, the council is also considering raising the transient room tax rate from 6% to 10%, aligning it with neighboring Ashland and remaining competitive within the region. This increase aims to bolster the city’s general fund, which has faced funding challenges. Currently, 100% of the tax revenue is allocated to the parks fund, but the new proposal suggests diverting up to 48.5% of the revenue to the general fund, a move that could provide much-needed financial support for city operations.

The council plans to delay decisions on how to allocate the new tourism-related revenues until they have a clearer understanding of the potential revenue scale. This approach will allow for more informed decisions on whether to invest in tourism promotion, local facilities, or park improvements.

Importantly, these proposed changes will not alter the city’s existing regulations on short-term rentals, which are limited to properties used as primary residences for at least 200 days a year. The council is now inviting further discussion and questions from members as they navigate these significant updates to the city’s tax structure.