City staff told the Troutdale City Council on Dec. 9 that proposed changes to the city’s transient lodging tax code would require short‑term rental hosts to register through the existing business license process and give the city stronger compliance tools, while not altering the current tax rate of 6.95 percent.
Marley Boxler, Troutdale’s economic development coordinator, said the proposed amendments to chapter 3.08 of the Troutdale Municipal Code would add clearer definitions for short‑term rentals and online lodging intermediaries, require registration and reporting, authorize platforms to collect and remit the tax on the operator’s behalf, and strengthen enforcement provisions. "We have seen a growth in short‑term rentals," Boxler said, noting staff estimates that short‑term rental receipts rose from $395,000 in 2021 to $1,300,000 in 2024 and that the city may have missed about $326,000 in tax revenue since 2021 due to noncollection.
Erica Palmer, the city’s media development director, said staff are trying to minimize new administrative burden by using the existing business license as the registration mechanism; the standard business license fee is $80 per year and a single license can list multiple rental addresses. Boxler said the redline code also includes posting requirements so listings show a local license number and clarified exemptions for extended medical or care facility stays.
Councilors asked whether recreational vehicles and campgrounds would be treated as transient lodging and how platforms such as Airbnb and VRBO would be notified. Boxler responded that the proposed language is intended to cover a broad range of lodging types while allowing separate municipal standards for campgrounds or temporary park uses, and that the registration section (3.08.0.03 in the draft) would require all transient lodging tax collectors to obtain a city business license.
No members of the public testified in the council chamber or on Zoom during the hearing. The council closed the public‑comment portion of the hearing and continued the ordinance to the Jan. 13, 2026 council meeting for deliberation and potential action.
If council adopts the changes, short‑term rental operators will be required to register with the city, and hosting platforms could be authorized to collect and remit the transient lodging tax on the operator’s behalf. The proposal does not change the 6.95 percent tax rate but aims to bring short‑term rental providers into the same compliance framework as hotels and other lodging providers.
The council will consider the ordinance at its Jan. 13, 2026 meeting.