Baker City's 7% Lodging Tax Leaves County Officials Facing Funding Cuts

Baker City has adopted a separate transient lodging tax and budgeted $800,000 in lodging tax revenue for the fiscal year that ends June 30, 2026, a move that has prompted county officials to begin internal discussions about next steps. The city’s new structure establishes a municipal revenue stream tied to short-term rentals, motels and other lodging outlets at a 7 percent rate.

The Baker City Council voted unanimously on June 10 to adopt Ordinance No. 3410, an amendment to Chapter 111 of the Baker City Code that implements a 7 percent transient lodging tax. The ordinance number and the Chapter 111 amendment were entered into the municipal record as the legal vehicle for the change, and the council’s unanimous vote appears in the city’s Council actions.

City implementation details are already in place. Baker City’s Transient Lodging Tax Board meets on the First Tuesday of each month at 5 p.m. at Baker City Hall, 1655 1st St., and the board posted an agenda dated 02.03.26 with a Zoom link for remote participation. City staff note that the new municipal lodging tax rate will remain the same as the current tax - 7 percent of the rental rate - indicating the ordinance separates the tax administratively rather than raising the percentage charged to guests.

Local reporting and municipal materials point to a long-standing 7 percent rate. One report states that the rate “hasn’t changed since 2006,” while another describes the 7 percent level as having been in place “for more than two decades.” Those accounts align on continuity of the 7 percent levy but differ slightly on phrasing; the municipal code amendment is the record for the effective legal language and timeline.

County officials have opened internal conversations about the fiscal implications for Baker County government. A county-related passage in city reporting notes that Baker County officials are “discussing how the county will move forward with significantly” but the available excerpt stops short of specifying the object of “significantly.” Separately, a regional reporter quoted a figure identified only as Johnson saying Baker County’s lodging tax rate is lower than in other cities in the region, including Ontario, a comparison county leaders will likely weigh as they assess budget and service impacts.

With Baker City budgeting $800,000 in lodging tax revenue for the fiscal year ending June 30, 2026, county budget planners face a pending gap in how transient lodging receipts will be collected and distributed between municipal and county governments. The ordinance number, Chapter 111 amendment, and the TLT Board schedule provide concrete places for officials and operators to follow the transition; the full text of Ordinance No. 3410 and Baker County’s forthcoming statements will be necessary to quantify specific county revenue changes and final allocation rules.