Tigard, OR Short-Term Rentals: Taxes & Fees (2026)
Key Facts
- Short-term rental defined
- Rental to overnight guests for fewer than 30 consecutive days
- Exempt ADU size
- 1,000 square feet or less
- Fees waived
- City transportation and park SDCs only
- Short-term rental bar
- 10 years after final inspection approval
- Covenant
- Recorded and submitted before building permit issuance
- Exemption repealed
- July 31, 2027
Summary
In the City of Tigard, Oregon, an accessory dwelling unit of 1,000 square feet or less is exempt from city transportation and park system development charges only if its owner accepts a 10-year bar on short-term rental use. A restrictive covenant must be recorded before the building permit issues, and the exemption is repealed on July 31, 2027.
"Short-term rental"means rental of a residential dwelling unit, or any portion thereof, to overnight guests for fewer than 30 consecutive days. ... F. Accessory dwelling units of 1,000 square feet or less that comply with TMC 3.24.180, from city transportation and park SDCs only. ... A. An ADU receiving an exemption pursuant to TMC 3.24.100.F may not be used as a short-term rental for a period of 10 years following approval of final inspection of the building permit for the ADU. A restrictive covenant must be recorded and submitted to the city prior to building permit issuance. B. TMC 3.24.100.F is repealed on July 31, 2027. Restrictive covenants recorded prior to this date will remain in full force and effect.
Full Breakdown
Tigard's code ties one fee break directly to short-term rentals. Section 3.24.030 defines a short-term rental as rental of a residential dwelling unit, or any portion of it, to overnight guests for fewer than 30 consecutive days. Section 3.24.100.F then exempts accessory dwelling units of 1,000 square feet or less that comply with § 3.24.180 from city transportation and park SDCs only, so the exemption does not reach any other system development charge. Section 3.24.180.A supplies the condition: an ADU receiving the exemption cannot be used as a short-term rental for 10 years following approval of final inspection of the building permit for the ADU.
A restrictive covenant must be recorded and submitted to the city before the building permit is issued, which means the commitment is in place before construction starts. Section 3.24.180.B repeals § 3.24.100.F on July 31, 2027, and restrictive covenants recorded before that date remain in full force and effect, so the 10-year bar outlasts the repeal. The lodging tax is a separate matter. Chapter 3.85 of the Tigard Municipal Code taxes occupancy of lodging at two and a half percent of rent under § 3.85.030, defines lodging by reference to transient lodging under ORS 320.300, and does not use the words short-term rental. Section 3.85.060 exempts dwelling units described in ORS 320.308, and the finance director enforces the chapter under § 3.85.040.C.
Violations & Fines
Chapter 3.24 closes with § 3.24.160: violation of the chapter is a Class A infraction punishable by a fine not to exceed $500.00. Section 3.24.180 prints no separate penalty, and the recorded restrictive covenant is the instrument the code requires to hold an owner to the 10-year bar. Unpaid SDCs also block a certificate of occupancy or final inspection approval unless an exemption was granted or installment arrangements were made under § 3.24.090.
Frequently Asked Questions
Can I rent my ADU short term in the City of Tigard if I took the SDC exemption?
Which fees does the ADU exemption cover?
What happens to the exemption after July 31, 2027?
Does Tigard's lodging tax apply to short-term rentals?
Sources & Official References
Other rules in Tigard
How Tigard compares: Cities with the Highest Short-Term Rental Taxes·Compare Tigard to another location·View the Oregon short-term rentals overview
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