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Pay Transient Occupancy Tax and Tourism Promotion Area Fee

The Transient Occupancy Tax (TOT) is a tax for those renting housing accommodations for less than 30 days in the City of Salem. As an operator, you collect the tax at the time that payment is made for the overnight stay, then you make tax payments to the City on, or before, the last day of the month after the stay has occurred. Learn more about the TOT and who is required to pay.

Beginning January 1, 2020, a 2% fee for the Tourism Promotion Area is required on stays in Salem hotels/motels and stays booked through a third party intermediary. Please see below for further details.

Tourism Promotion Area

On December 2, 2019, Salem City Council approved Ordinance Bill No. 16-19 creating a Tourism Promotion Area (TPA). For stays beginning January 1, 2020, a 2% fee will be assessed on stays in Salem hotels/motels and for stays made through an intermediary. Stays in Short Term Rentals (STRs) will not be impacted. The assessment will be on the same taxable rents as with the Transient Occupancy Tax (TOT). In other words, the same exemptions to stays would apply when calculating the TPA fee and TOT. However, the 5% Operator Administrative Fee retained by operators will not be applicable to reducing the amount to be paid for the TPA - only the TOT.

Revenues from the TPA will be used by the Destination Marketing Organization (currently Travel Salem) for purposes such as advertising, sponsorship of special events, branding, and marketing efforts to promote tourism. Up to 5% of the revenues generated from the TPA will be retained by the City for administration.

Monthly Reporting

Each month, operators shall submit a TOT return for rental activity from preceding month and pay their TOT for that period. For example, on or before November 30, Operators have to report October rental activity and submit their TOT payment.

Payment and Return Filing Options

If you are a lodging operator, you can make a tax payment to the City of Salem by electronic payment, mail, drop box, or in person.

Electronic Submittals-Launched August 2019

Operators will be able to submit their monthly returns and make payments for TOT online beginning August 1, 2019 for activity in July 2019. Starting February, 2020 the TPA fee will be added to the payment portal for easy payment.

To get started, you can use your eGov account username and password to log in to the PAC Portal. (eGov = City of Salem utility billing, Parks and Rec, Center 50+).

If you do not have an eGov account, register here. When registering, be sure to use the email address associated with your TOT registration.

Step by Step instruction to login/sign up and TOT Folder number (in the new payment system) have been sent to operators via the email address associated with your account. If you are a new operator, or have lost this information, please contact City of Salem Finance Department (contact information found to the right).

The portal will automatically calculate the TOT and TPA due (after deducting exemptions and Operator's Administration fee) including any penalties/interest an operator may owe. Credit cards and debit cards from Visa and MasterCard are accepted as well as ACH. The portal will act both as a place to view past submittals and payments.

Mail or hand deliver your return and payment to:

Customer Service Center 
555 Liberty St. SE, Room 100
Salem, OR 97301

Drop box:

You can drop off your return and payment at a secure drop box, but you should always allow three business days to process the payment. Drop box payments are collected once a day in the early morning. Drop boxes are located at the following Salem addresses:

  • On the 500 block of Liberty Street SE at the bus turn out between Salem City Hall and the Salem Library
  • In front of the Customer Service Center at Salem Civic Center
  • At the West Salem Library, 395 Glen Creek Road NW

Late Filing and Payment

Payment and returns are due to the City on the last day of the month following the month the tax was collected. If an operator chooses to submit electronically, this means that a submittal will not be considered late if done on a Saturday, Sunday, or federal holiday when the City Offices are otherwise closed.

If an operator chooses to submit via the traditional paper form and pay in person/the mail, or submit report through PAC Portal and pay in person/the mail, please note that the reporting and payments are due the last business day of the month to insure that the payment is processed before the month is over and hence penalties/interest are not assessed.

TOT Calculations Rates TPA Calculations Rates
City of Salem Transient Occupancy Tax (TOT)
 9% of Taxable rent
 Tourism Promotion Area Fee
 2% of Taxable rent
Rebate rate for Operators Administrative Fee per SRC 37.1508
 5%: Operator Administrative Fee (less from TOT amount)
 First penalty if tax is paid after due date (> 30 days)
 10% of fee due
First penalty if tax is paid after due date (> 30 days)
 10% of TOT due
 Interest on tax due per month if tax is paid after the due date
 1% of fee due
Interest on tax due per month if tax is paid after the due date
 1% of TOT due per month
 Second penalty if tax is paid after due date (> 60 days) 25% of fee due
Second penalty if tax is paid after due date (> 60 days)
 25% of TOT due

Forms

Audits

If you pay transient occupancy tax and/or the tourism promotion area fee, you may be subject to an audit. If you are selected for an audit, you will be notified by the City of Salem by letter. If you have received an audit notice, you must schedule an appointment with the City of Salem Finance Division before the deadline indicated on the notice.

To learn more about the transient occupancy tax, see Chapter 9, Section 56 of the City Charter and Salem Revised Code 37.080.