New taxes, laws for restaurants, hotels

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By Oregon Restaurant & Lodging Association,

Here are a few quick updates:

HB 2005 – Paid Family and Medical Leave

Hard cap of 12 weeks paid leave + 4 weeks unpaid (if OFLA eligible) with 2 additional weeks for complicated medical pregnancy
Must be employed for 90-days before job protections kick in
1% Premium split 60% worker and 40% employer
Employers with less than 25 employees don’t pay the “employer premium” (40% of 1% of payroll)
Statewide preemption on all paid family and medical leave related issues.

Effective date is September 28, 2019 with rule making being completed by September 1, 2021 and contributions beginning January 1, 2022. Employees may begin using the benefit January 1, 2023.

SB 90 – Plastic Straws on request

Plastic straws in restaurants are now only available “on request” unless a customer is using the drive through and then employees may ask the customer if they would like a straw. Effective as of June 13, 2019.

HB 2509 – Plastic Bag Ban

Single use disposable plastic bags are banned from restaurants and grocery stores. Retailers may charge for paper bags. Effective date is January 1, 2020.

HB 3137 – Collection of local lodging taxes by Oregon Department of Revenue

Provides that transient lodging tax becomes due when occupancy of transient lodging with respect to which tax is imposed ends. This bill will help eliminate the issue of properties collecting and remitting the lodging tax to the state and then if a customer cancels, having to go back and recover the lodging tax paid in order to refund the customer the tax. Effective date January 1, 2020.

SB 248 – Increase in certain fees charged by OLCC

Fees for OLCC licenses will double effective July 1, 2019. Negotiated separately from this bill is the option to renew an OLCC alcohol license every two years instead of annually.