Bend, OR Short-Term Rentals: Taxes & Fees (2026)
Key Facts
- License fee basis
- Cost-recovery amount set by Council resolution
- Fee covers
- Application, renewal, late fee, inspections
- Renewal due date
- Annually, every September 1
- License transferability
- Not transferable; voids on sale of property
- New owner grace period
- 60 days to apply after purchase
- Room tax on STR rent
- 10.4% under BC Chapter 12.05
- No license consequence
- STR operation must be discontinued
Summary
Bend short-term rental hosts pay two separate charges: a cost-recovery license fee set by City Council resolution under BC 7.16.040(C), due on initial application and each annual renewal, and the City's 10.4 percent room tax, because BC 12.05.010(G)(3) defines taxable "temporary lodging" to include houses, condominiums and apartment units rented for temporary human occupancy, not just hotels.
C. License Fee. ... The fee for application for a short-term rental operating license or license renewal shall be in an amount to recover the City’s actual average costs of reviewing and issuing the license application or license renewal application, including a fee for a late application, investigation and any required inspections, as established by resolution of the City Council. ... G. ... Temporary lodging means: ... 3. ... Houses, cabins, condominiums, apartment units or other dwelling units, or portions of any of these dwelling units that are used for temporary human occupancy.
Full Breakdown
Under BC 7.16.040(C), the short-term rental operating license fee is not a fixed dollar figure in the code; it is set by City Council resolution in an amount meant to recover the City's actual average cost of reviewing and issuing applications and renewals, including a late-application fee and any required investigation or inspection. BC 7.16.060(B)(1)(a) requires existing short-term rentals to file a renewal application and pay the renewal fee every year on September 1, while BC 7.16.050(A) sets the license term at one year from the date the application was due.
The license is issued to the owner and is not transferable: BC 7.16.050(B) voids it on sale of the property, though the new owner gets 60 days to apply for a new license. On the tax side, BC 12.05.010(G) defines "temporary lodging" subject to the room tax chapter to reach not just hotel, motel and inn units but, under BC 12.05.010(G)(3), houses, cabins, condominiums, apartment units and other dwelling units used for temporary human occupancy, which sweeps in short-term rentals. That means an STR operator must also register with the Tax Administrator, collect the 10.4 percent room tax on rent under BC 12.05.015, and remit it under the same monthly or quarterly schedule and penalty structure (BC 12.05.035, 12.05.040) that applies to hotel operators.
Violations & Fines
BC 7.16.060(A) states that the ability to operate a short-term rental in the City of Bend is discontinued if the owner fails to obtain or renew the operating license as required, effectively shutting down the rental until it is licensed. Because short-term rentals also fall under the room tax chapter's definition of temporary lodging, an STR operator who fails to remit collected room tax faces the same tiered penalties as a hotel: 10 to 25 percent of the amount due plus 1 percent monthly interest under BC 12.05.040.
Frequently Asked Questions
Does Bend charge a separate fee for short-term rental licenses?
Do Bend short-term rentals owe the city's room tax?
How often does a Bend short-term rental license need to be renewed?
Can I transfer my Bend short-term rental license to a new owner?
Sources & Official References
Other rules in Bend
Compare Bend to another location·View the Oregon short-term rentals overview
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