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Salem, OR Hotels & Lodging: Transient Occupancy Tax (2026)

Some Restrictions
Compiled from the official code textEditor Martyn O'NeillLast verified September 2026

Key Facts

Tax rate
9% of rent charged
Applies to
All transient lodging, 30 days or less
Remittance deadline
Monthly, by end of following month
Registration window
15 days after starting business
Late penalty
10% then 25% after 30 days
Revenue destination
Cultural and Tourism Fund

Summary

Salem imposes a nine percent transient occupancy tax on every hotel, motel, and other transient lodging stay of 30 days or less, charged to the guest and collected by the operator at the time rent is paid (SRC 37.030). The same tax and definition explicitly reach short-term rentals, so a Salem hotel bill and an Airbnb booking both carry the identical nine percent city tax.

Sec. 37.030 - Tax imposed. "For the privilege of occupancy in any transient lodging, each transient shall pay a tax in the amount of nine percent of the rent charged by the operator. The transient shall pay the tax to the operator of the transient lodging at the time the rent is paid. The operator shall enter the tax on the operator's records when rent is collected if the operator keeps records on the cash accounting basis and when earned if the operator keeps records on the accrual accounting basis. If rent is paid in installments, a proportionate share of the tax shall be paid by the transient to the operator with each installment. The tax constitutes a debt owed by the transient to the City and is extinguished only by payment of the tax to the City. In all cases, the rent paid or charged for occupancy may exclude the sale of any goods, services, or commodities, other than those charges associated with the furnishing of rooms, accommodations, and space in mobile home parks or trailer parks."

View official code

Official source re-checked September 7, 2026: no newer edition of the code had been published (publisher’s edition: Code of Ordinances: Supplement 26 Update 1).

Full Breakdown

020 defines broadly to include hotels, motels, inns, bed and breakfasts, and every other type of lodging occupied for 30 days or less. 050). 070). 080). 060). 140(a)).

Violations & Fines

An operator who misses the monthly remittance deadline owes a ten percent delinquency penalty immediately, and a second 25 percent penalty if the tax is still unpaid 30 days later, on top of one percent monthly interest on the unpaid balance (SRC 37.090). The Finance Officer can issue a deficiency determination within three years of the period at issue, and an operator who fails to collect the tax, files a fraudulent return, or otherwise evades the chapter faces an estimated assessment plus penalties and interest (SRC 37.100).

Frequently Asked Questions

What is Salem's hotel occupancy tax rate?
Nine percent of the rent charged by the operator, under SRC 37.030. The guest pays the tax to the hotel or motel at the time rent is paid, and the tax is treated as a debt the guest owes the City until it is paid in full.
Does Salem's occupancy tax apply to Airbnb and other short-term rentals?
Yes. SRC 37.020 defines 'transient lodging' broadly enough to include 'accessory short-term rental, short-term rental,' alongside hotels and motels, so the same nine percent tax under SRC 37.030 applies equally to short-term rental bookings of 30 days or less, with no separate rate or exemption for hosts.
Is anyone exempt from Salem's transient occupancy tax?
Yes. SRC 37.060 exempts stays of 30 or more consecutive days, hospital or licensed care-facility patients, federal employees traveling on official business, foreign diplomats presenting a valid exemption card, and disaster-shelter occupants whose rent is paid with government assistance funds.
What happens if a Salem hotel operator doesn't pay the tax on time?
The operator owes a ten percent penalty right away, a second 25 percent penalty if the tax is still unpaid after 30 days, and one percent monthly interest on the balance (SRC 37.090). The Finance Officer can also issue a deficiency determination and, ultimately, the City Attorney may sue to collect.

Sources & Official References

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All Salem rules

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