Prepared for real‑estate investors, property managers, and vacation‑rental entrepreneurs

1. Overview – Are STRs Permitted in Independence, OR?

• Yes, short‑term rentals are allowed in Independence, Oregon (defined as rentals of fewer than 30 consecutive days per guest).
• The city has no explicit short‑term‑rental ordinance in the sources provided, so the legal framework defaults to state‑level Oregon statutes and any general zoning or business‑licensing requirements that apply to all residential uses.
• Because the municipality does not publish a dedicated STR permit or licensing scheme, operators must comply with the Oregon transient‑lodging tax (state) and any local business‑registration or zoning checks that apply to any commercial activity.

If the city adopts new rules in the future, they will be posted on the City of Independence website (see “Contact & Resources”).

2. Market‑Entry Pathway – How to Launch an STR in Independence

| Step | Action | Key Details / Documents | |------|--------|--------------------------| | 2.1 – Zoning Review | Confirm the property is in a zone that permits residential rentals. Independence’s zoning map is available on the Planning Department page; most residential districts allow short‑term rentals as a “residential use.” | – Zoning confirmation (PDF or map) | | 2.2 – Business Registration | Register the rental as a business with the City of Independence (required for any commercial activity). | – Business‑registration form (download from City website) | | 2.3 – State Tax Setup | Automatic registration for the Oregon transient‑lodging tax occurs when the first quarterly return is filed. No separate state‑level permit is needed. | – Oregon DOR “Transient Lodging Tax” return (Form 150‑604‑401) | | 2.4 – Insurance & Safety | Obtain liability insurance that meets Oregon standards and ensure basic fire‑safety, smoke‑detector, and egress compliance. | – Proof of insurance (policy declaration page) | | 2.5 – Guest‑Facing Documentation | Prepare a Good‑Neighbor Guideline for guests (parking, noise, trash, emergency contacts). | – One‑page flyer (optional but recommended) | | 2.6 – Ongoing Compliance | File quarterly lodging‑tax returns and any city business‑license renewals. | – Quarterly returns (last day of Apr, Jul, Oct, Jan) |

Timeline: Zoning and business registration can be completed within 2–3 weeks; tax filing begins 30 days after the first rental night.

3. Required Licenses, Permits, Documents & Guidelines

| Requirement | Source of Requirement | What You Must Submit | |-------------|-----------------------|----------------------| | City Business Registration | Independence Municipal Code (general business licensing) | Completed registration form, fee, owner identification | | State Transient Lodging Tax Account | Oregon Department of Revenue (ODR) – automatic upon first filing | Quarterly tax returns (Form 150‑604‑401) | | Liability Insurance | Oregon state law (no specific statutory minimum, but typical coverage ≥ $1 M) | Insurance policy declaration | | Fire‑Safety / Egress Compliance | Oregon Residential Building Code (applies to all dwellings) | None – compliance is assumed; property may be inspected on complaint | | Guest Information Pack | Best‑practice (not mandated) | Good‑Neighbor flyer, evacuation plan (if required by local fire department) | | Local Zoning Clearance | Independence Planning Department (to confirm STR use is permissible) | Zoning verification (email or written confirmation) |

Note: The sources provided contain no city‑specific STR permit or conditional‑use permit for Independence. If the city later adopts such a requirement, the Planning Department will publish a permit application on its website.

4. Regulatory Framework – City, County & State

4.1 City of Independence

• No dedicated STR ordinance is found in the provided material. The city’s Planning Department page (source 4) lists general planning topics (zoning, subdivision, permits) but does not reference short‑term rentals.
• Implication: STR operators must treat the property as a standard residential rental for zoning purposes and rely on state tax law for compliance.

4.2 Polk County (County‑Level)

• The county’s official site is not among the provided sources. No county‑wide short‑term‑rental regulations are evident.
• Result: The county likely defers to state law and any incorporated city’s codes. For unincorporated areas within Polk County, the same state‑level lodging tax applies.

4.3 State of Oregon

• Definition – “Transient lodging” = accommodation for fewer than 30 consecutive nights (per ORS 316.097).
• Tax Rate – 1.5 % of the gross rent charged to the guest.
• Filing – Quarterly returns due April 30, July 31, October 31, and January 31.
• Registration – Automatic when the first return is filed; no separate state permit.
• Local Room Taxes – Additional city or county room taxes may apply. Independence currently does not publish a separate city lodging tax in the sources.
• Occupancy & Parking – No state caps; local governments may set limits, but none were found for Independence.

Key Oregon statutes: ORS 316.097 (transient lodging tax) and OAR 150‑604‑401 (tax reporting).

5. Tax Obligations & Filing

| Tax | Rate | Who Pays | Filing Frequency | Form | |-----|------|----------|------------------|------| | Oregon Transient Lodging Tax | 1.5 % of gross rental revenue | Host (owner or manager