The 2003 Oregon Legislature passed House Bill 2267 to establish a state lodging tax. The revenue this tax generates funds Oregon Tourism Commission programs. House Bill 2197 (2005) expanded the definition of "transient lodging" and the list of who must pay the tax. House Bill 2656 (2013) expanded the list of who must collect and pay the tax.

HB 2656 took effect on October 7, 2013 and requires transient lodging providers and transient lodging intermediaries to collect and remit taxes computed on the total retail price paid for occupancy of transient lodging.

In 2017, the Legislature passed House Bills 2400 and 3180. HB 2400 allows a state agency to enter into agreement with a local government to administer the local government's lodging tax. HB 3180 requires the department to share state lodging tax information with local governments who request it. The information can only be used by a local government in administration of a local lodging tax.

The 2018 Legislature passed House Bill 4120, which clarified the definition of transient lodging intermediary and updated the tax law to include current online booking business models.

Most recently, the 2019 Legislature passed three bills that withhold the 5 percent collection reimbursement from transient lodging intermediaries (House Bill 3136) to implement local lodging tax administration, remove one rental exemption for transient lodging intermediaries (House Bill 3138), and make state lodging tax due and reportable to the department for the quarter that the occupancy ended (House Bill 3137).ew Paragraph