Short-term rentals in Lincoln City, explained properly.

The license is issued in the owner's name, is not transferable and is void when the holder sells or transfers the property (§ 5.14.050(A)). "Sale or transfer" is any change of ownership during the holder's lifetime or after death, whether or not there is consideration, except survivorship titles (such as with a spouse or domestic partner) and two listed exceptions (§ 5.14.020(A)): transfer to a trustee or business entity does not revoke the license so long as the transferor lives and remains the only owner of the entity (the license ends on the transferor's death or sale of the interest), and transfer to the holder and a spouse or domestic partner with the right of survivorship is allowed, provided that, if the property is in a residential zone, the spouse or partner owns no interest in another residential-zone vacation rental. On the holder's death, if ownership passes by operation of law to an executor or heir, the license continues provisionally, subject to the renewal process, for one year or until the heir or executor transfers the property, whichever comes first (§ 5.14.050(A)). A buyer needs a new license.

The definition of "person" caps a natural person, or a trustor of a trust holding the property, at no more than one dwelling unit in a residential zone that has a vacation rental dwelling license; for a business entity, any person who owns an interest in the entity is an owner subject to the same limit (§ 5.14.020(B)). The license standard repeats it: a residential-zone property qualifies only if the owner has no ownership interest in another residential-zone property used or approved as a vacation rental dwelling (§ 5.14.050(B)(1)), and the applicant certifies it under penalty of perjury (§§ 5.14.055(D), 5.14.060(B)(7)). Exception: lawfully established vacation rentals in Roads End (as defined in Ordinance 2012-10) that existed and were lawfully operating on July 1, 2013 count as no more than one ownership (§ 5.14.060(B)(3)(b)). A listed spouse or domestic partner transfer is allowed only if the spouse owns no other residential-zone vacation rental (§ 5.14.020(A)(2)).

The renewal standard is in § 5.14.080(E)(7): the property has generated at least $500.00 from rental occupancy during the previous year as demonstrated by transient room tax reports filed under LCMC § 3.04.070, and the person who verifies the tax makes a summary determination. The same paragraph adds that, where a cap is imposed, a new or renewal license is not issued if the dwelling has not obtained or maintained a license in the preceding six-month period and has been rented at least 30 days in that license year, and that an accessory license may be issued to a dwelling that does not meet the 30-day standard; we haven't reviewed the zoning chapter, so the cap itself isn't stated here. If the application does not meet every renewal standard, the City will not renew and the property may not be used as a vacation rental (§ 5.14.080(F)). Renewal also needs an inspection of the property for compliance within the last three years (§ 5.14.080(E)(6)).

The planning and community development director assigns each license to one of four quarterly renewal dates, and the first-year fee is prorated to that date (§ 5.14.080(B)(1)-(2)). A complete renewal application and fee are due no earlier than 30 days before and no later than 30 days after the assigned date; a late fee may be set by resolution for applications after the 60-day window (§ 5.14.080(B)(3)). If no complete application and fee arrive by 30 days after the date, the license is subject to expiration as of the date, taking effect 10 days after the City mails notice unless the owner submits the application, fees and any late fees within that 10-day period (§ 5.14.080(B)(4), (C)). After expiry the property may not be used as a vacation rental until a new license is obtained (§§ 5.14.080(B)(4), 5.14.120(B)). Renewal standards include the complaint log review, the three-year inspection and the $500 rental income test (§ 5.14.080(E)).

The owner provides the representative's name, address and telephone number, and the number must be operative at all times including nights and weekends (§ 5.14.060(B)(6)(a)(ii)). An owner who lives inside the Lincoln City urban growth boundary, or within 10 miles of it, may be the representative. Changes in owner or representative contact information must be filed at least 14 days before they take effect, with any fee (§§ 5.14.060(B)(6)(a)(iii), 5.14.070(C)). Owners post a small placard on the front of the building with the representative's name and phone number (§ 5.14.060(B)(6)(a)(iv)), and the City mails notice of the representative's contact details to owners within 250 feet (§ 5.14.070(D)). Section 5.14.055(B) describes the representative as a permanent resident within the urban growth boundary instead of within 10 miles of it; the rule is marked needs-review for that reason.

Occupancy may not exceed the 1997 Uniform Housing Code limits, and may not exceed 5 guest rooms (a bedroom or other space designed and intended for sleeping) or 16 persons overnight (§ 5.14.060(B)(4)(a)(i)-(ii)). The cap is also three times the number of bedrooms plus one additional occupant, not to exceed 16, except as the commercial-zone exception allows (§ 5.14.060(B)(4)(a)(iv)). The exception applies only to a unit constructed pursuant to (or retrofitted for compliance with) the current Oregon Structural Specialty Code and only in the general commercial (GC), recreation commercial (RC), Taft Village core (TVC), Nelscott business district (NBD), Nelscott beachside mixed use (NBMU), Oceanlake plan district (OPD) and vacation rental (VR) zones, or other districts the Council authorizes by ordinance (§ 5.14.060(B)(4)(a)(iii)). The license states the numeric occupancy limit and the number of bedrooms (§ 5.14.060(B)(4)(a)(v)). Occupancy is reduced to match the number of bedrooms with qualifying egress windows or doors (§ 5.14.060(B)(4)(c)(i)(C)).

The owner (all owners in the event of shared ownership) certifies under penalty of perjury that the owner has liability insurance which expressly covers the vacation rental operations on the property in the amount of at least $500,000, combined single limit (§ 5.14.060(B)(7)(a)(iv)). The same certification list requires solid waste collection service, current compliance with the parking and landscaping standards, building code compliance, and no pending City enforcement actions on the property (§ 5.14.060(B)(7)(a)).

The owner maintains a register for each tenancy of the vacation rental with a record of all occupancy days, showing the tenants' name, address and telephone number and the dates of the rental period, available for City inspection on request; copies are treated as confidential to the extent the law allows (§ 5.14.070(A)). Failing to maintain or provide the register on request is a violation (§ 5.14.130(B)(3)). The owner or local representative also keeps a contemporaneous written complaint log with date, time, nature and action taken, available for inspection and provided with a renewal application (§ 5.14.070(B)(2)).

"Timely" means within one hour of receiving the complaint; complaints received after 9:00 p.m. and before 7:00 a.m. other than noise complaints are timely if resolved by 8:00 a.m. (§ 5.14.100(C)). City staff make at least three attempts to reach the owner and local representative (§ 5.14.100(B)). Within 20 days of a complaint relayed by City staff the owner mails the City a written explanation of the action taken, including no action (§ 5.14.100(C)). Failing to respond to a relayed complaint on at least two separate occasions in the license year is a Class C civil infraction against the owner and the local representative, and a conviction starts revocation proceedings (§ 5.14.100(D)). Where City records show more than one complaint in the license year, the applicant bears the burden of showing the complaints were resolved or do not reasonably apply to the occupancy (§ 5.14.080(E)(4)).

The dwelling is subject to inspection at the time of a new or renewed application for smoke alarms or detectors on each floor and in each common hallway, a smoke alarm for hearing-impaired persons, carbon monoxide alarms and other North Lincoln Fire District requirements; if the unit fails, the owner requests reinspection within 30 days and the City takes no action on the application until the inspection is satisfied (§ 5.14.070(E)(1)-(2)). A renewal also needs an inspection for compliance within the last three years (§ 5.14.080(E)(6)). Bedrooms need an operable egress window or exterior door with a minimum opening of 5.7 square feet, not more than 44 inches above the floor, with listed reductions for ground-floor and pre-July 1, 1978 construction (§ 5.14.060(B)(4)(c)(i)). Other standards cover railings, outlet covers, GFCI receptacles, labeled breaker boxes, smoke detectors in sleeping areas and hallways, carbon monoxide alarms where fuel-burning appliances or an attached garage exist, house numbers, tripping hazards and the DOGAMI tsunami evacuation map (at least 11 by 17 inches), plus water quality limits and testing within 24 hours before each change of occupants for any pool or spa (§ 5.14.060(B)(4)). A renewal may certify compliance with the egress, railing and building code standards by agreeing in writing to fix them within 180 days under a corrective order (§ 5.14.060(B)(4)(c)(xii)).

The license is affixed to a wall inside the dwelling next to the front door and shows the license number and expiration date, the owner or local representative and a phone number reachable at all times, City and police phone numbers and website, the number of approved parking spaces outside the garage and the maximum number of vehicles, the maximum occupancy, any prohibited occupancy, the solid waste collection day and the quiet hours under Chapter 9.10 LCMC between 9:00 p.m. and 7:00 a.m. (§§ 5.14.060(B)(4)(d), 5.14.070(F)). The dwelling also posts the current City fireworks-ban notice (at least 8.5 by 11 inches) near the main entrance, the tsunami evacuation map and the representative placard. Failing to display the license is a violation (§ 5.14.070(H)).

Section 5.14.060(B)(5) makes this an approval criterion and continuing obligation. A voluntary assurance of compliance, negotiated compliance agreement or deferred sentence agreement approved by the court satisfies the requirement. The owner also certifies there are no pending City enforcement actions on the property, or that such violations are subject to a court-approved resolution (§ 5.14.060(B)(7)(a)(viii)).

Any violation of Chapter 5.14 may be enforced as a Class B violation under Chapter 1.16 LCMC, and each day a dwelling is used in violation is a separate violation (§ 5.14.130(A)). Listed violations include false application information, advertising or renting without a valid license, noncompliant advertising or use, failing to comply with Chapter 3.04 and failing to meet the licensing and operational requirements (§ 5.14.130(B)). For a first violation of §§ 5.14.055 through 5.14.080 within a 12-month period the sanction may be a warning notice; if the same offense continues or a second offense occurs in a 12-month period, the penalty on conviction is not less than $250.00 and the license is subject to revocation (§ 5.14.110(A)). The planning director may issue a notice of violation with or without an order to cease all use as a vacation rental (§ 5.14.070(H)). Failing to respond to relayed complaints twice in a license year is a Class C civil infraction (§ 5.14.100(D)). We haven't reviewed Chapter 1.16, so the maximum Class B and Class C amounts aren't stated here.

After a license is revoked, the dwelling may not be used or occupied as a vacation rental and the owner may not reapply for a license for the same property for 12 months from the revocation date; if the City revokes an owner's license for a property on two separate occasions, the owner is not eligible to reapply for that property (§ 5.14.120(A)). After expiration, the owner must obtain a new license before the property can lawfully be used (§ 5.14.120(B)). The owner may appeal a revocation by filing a letter of appeal within 12 days after the City Manager's decision is mailed and paying an appeal fee set by Council resolution; the revocation is stayed until the board decides (§ 5.14.110(C)). If the board upholds a revocation it orders the owner to discontinue use (§ 5.14.110(E)).

The VRD license appeals board decides appeals of decisions approving, denying, revoking or suspending a license in any zone, and reviews whether the City's decision is reasonable and based on a preponderance of the evidence (§ 5.14.090(A)-(B)). The licensee, applicant and any person entitled to notice of license issuance may appeal. The written notice must state the basis, including citation to the law, and be filed within 12 days; missing the deadline or the content requirements is a jurisdictional defect and the appeal is summarily dismissed (§ 5.14.090(C)(1)). The City Manager schedules a hearing within 14 days of receiving the notice, notice goes to owners within 250 feet at least 10 days before, and decisions issue within 60 days after the hearing closes; the board's decision is the City's final decision (§ 5.14.090(C)(3), (E)). The City may also file an action regarding use of a vacation rental with the board (§ 5.14.130(C)). A filing fee may be set by Council resolution (§ 5.14.090(C)(2)).

Section 320.305 of the Oregon Revised Statutes (the edition read) imposes a tax of 1.5 percent on any consideration charged for the sale, service or furnishing of transient lodging, computed on the total retail price including all charges other than taxes; the tax becomes due when the occupancy ends, and the collector may withhold a collection reimbursement charge of five percent of the amount collected. The Department of Revenue says the rate is 1.5 percent for stays ending on or before December 31, 2026 and 2.75 percent for consideration charged on or after January 1, 2027, and that receipts and invoices must label the new 1.25 percent as a "nature conservation fee" (Chapter 140, Oregon Laws 2026); the Legislature's overview of House Bill 4134 (2026) says the Act increases the state transient lodging tax and applies the increase to charges occurring on or after January 1, 2027. We haven't reviewed the enrolled text of House Bill 4134, so the 2.75% figure rests on the Department of Revenue page. Transient lodging includes houses, cabins, condominiums, apartment units and other dwelling units used for temporary human occupancy. A dwelling unit used by the general public for fewer than 30 days a year is exempt, but that exemption does not apply to a unit rented out through a platform provided by a transient lodging intermediary; a stay of 30 days or more by the same person is also exempt. Returns and payments for the state are due by the last day of the month after each calendar quarter. Local city and county lodging taxes are shown on each place's page.

Under ORS 320.305, the tax is collected by the transient lodging provider or the transient lodging intermediary that collects the consideration charged for occupancy, or by an intermediary that requires the provider to use a specified third-party entity to collect it (ORS 320.300(12)(c)). A transient lodging intermediary is a person other than the provider that facilitates the retail sale of transient lodging and charges for or collects the consideration, or receives a fee or commission and requires the provider to use a specified third party to collect it. The Department of Revenue says whoever collects payment for the occupancy is responsible for collecting and remitting the tax, and that a host whose bookings are all handled through an intermediary, and will not be handled by the host in the foreseeable future, does not need to complete a return. A collector must give the guest an invoice or receipt that shows the sum of all transient lodging taxes charged (ORS 320.303). For local lodging taxes, ORS 320.360 puts the duty to collect and file on the same provider or intermediary that collects the payment, unless a local charter, ordinance or agreement provides otherwise. The sources read do not name particular platforms; check with the platform and the Department of Revenue.

We reviewed ORS chapter 320 (the transient lodging tax sections, 320.300 to 320.365), the Department of Revenue's Transient Lodging Tax page and the Legislature's overview of 2026 House Bill 4134 (an increase in the state lodging tax). These set a tax and who collects it. They do not license short-term rentals, set zoning, or limit what cities and counties may require; ORS 320.305 says the state tax is in addition to any local transient lodging tax, and the Department of Revenue says cities and counties set their own lodging tax rate. We haven't reviewed Oregon's land-use, landlord-tenant or other chapters, or other 2025 and 2026 bills, so this is a statement about the sources reviewed, not about all Oregon law. A similar bill could be filed in a later session.