Short Term Rentals to Be Licensed and Taxed as a Business

Klamath Falls, Ore. – The Klamath Falls City Council this week approved an ordinance regarding licensing and operating Short Term Rentals within city limits. Short-term rentals or STRs are also known as vacation rentals such as Airbnb or VRBO.

The City of Klamath Falls says it is classifying these as units rented for less than 30 days. Anything rented longer than the 30-day period is not considered a short-term rental.

The change comes due to an increase in VRBO and Airbnb’s in the past few years and they say the majority of these types of rentals are located in low-density residential areas of Klamath Falls. Under the approved standards, all properties used in this capacity must have a Short-Term Rental Permit and maintain an active City Business License. The date of compliance is September 30, 2024, and the total fee for the first year is $200, and each following year it will be $50.

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