Credit card processing and merchant services in Hillsboro, OR
Every business and organization working in Hillsboro applies for a City business license. By the City's own explainer, hotel and short-term rental stays carry a combined 13.5% lodging tax, and only 3% of it is the City's.
Hillsboro grew 4.4% between the Census Bureau's April 2020 base and July 1, 2025, reaching an estimated 111,126 residents. Its licensing rule is broad. The City says all businesses and organizations conducting business in Hillsboro must submit a business license application, and its forms page adds a separate exempt application for nonprofits and a home occupation permit for businesses run from home.
Lodging is where the local numbers get specific. The City's Finance 101 explainer on the transient lodging tax puts the combined rate on a Hillsboro stay at 13.5%, and only 3% of that is the City's own share. On a $180 night, 13.5% comes to $24.30. Rates can change, so confirm the current figure with the City before you load it into a booking engine or a front-desk terminal.
Short-term rental hosts have a licensing step of their own. The City requires a valid business license to operate a partial-dwelling or a full-dwelling short-term rental, and its Finance Department takes the applications.
Hotel card payments usually follow a set pattern: an authorization when the guest checks in, then the final charge at checkout. Pricing has a federal rule as well. Since May 12, 2025, the FTC's Rule on Unfair or Deceptive Fees has covered short-term lodging, which changes how a listing can present a mandatory cleaning or resort fee. Our guide to hotel card processing covers holds, no-shows and fee display.
Oregon has no general sales tax, and our Oregon page covers the state's cash and surcharge rules. For a second opinion on what you pay to process, send a statement for a free statement review.
Rules that matter in Hillsboro
Hillsboro's 13.5% combined lodging tax
The City of Hillsboro's Finance 101 explainer on the transient lodging tax gives the combined rate on a Hillsboro stay as 13.5%, of which 3% is the City's own share. The Oregon Department of Revenue says local lodging tax rates are set by the local municipality, so confirm the current total with the City before you set up booking or payment pages.
Sources: City of Hillsboro, Finance 101: Transient Lodging Tax (TLT); Oregon Department of Revenue, Transient lodging tax
Business licenses for Hillsboro short-term rentals
The City of Hillsboro requires a valid business license to operate a partial-dwelling or a full-dwelling short-term rental, and its Finance Department handles the applications. The requirement goes beyond rentals: the City asks all businesses and organizations conducting business in Hillsboro to submit a business license application, with a separate exempt application for nonprofits.
Sources: City of Hillsboro, Short-term rentals; City of Hillsboro, Business license forms and applications
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Common questions
What lodging tax does a Hillsboro hotel charge guests?
13.5% in total, according to the City's Finance 101 explainer on the transient lodging tax, and 3% of that is the City's own share. On a $150 night, that's $20.25. Rates can change, so confirm the current figure with the City, and give the tax its own line on the folio so guests can see what they're paying.
Do I need a business license to run a short-term rental in Hillsboro?
Yes. The City says a valid business license is required to operate both partial-dwelling and full-dwelling short-term rentals, and you apply through its Finance Department. If you take direct bookings, a payment link from the virtual terminal lets a guest pay the deposit with their own card details instead of reading a number over the phone.
Who has to apply for a Hillsboro business license?
All businesses and organizations conducting business in the City of Hillsboro, according to the City's business license forms page. Nonprofits use a separate exempt application, and the same page lists a home occupation permit for businesses run from home. Your merchant account application will ask for the same business details, so it helps to have the license sorted first.
Can a Hillsboro hotel place a hold on a guest's card at check-in?
Yes. An authorization hold reserves the expected amount on the guest's card without charging it, and the final bill is charged at checkout. Until the hold is released, it lowers the guest's available credit, so mention it at the desk. How long a hold lasts, and how to release one early, is in our authorization hold guide.
Does the FTC fee rule apply to Hillsboro vacation rentals?
Yes. Short-term lodging is one of two areas the FTC's Rule on Unfair or Deceptive Fees covers, along with live-event tickets, and the rule took effect on May 12, 2025. In practice, a mandatory cleaning fee belongs in the price a guest sees first, not at the last step of checkout. Our hotel card processing guide walks through the FTC's own resort fee example.
Disclaimer: general information, not professional advice
This page is general educational information, not legal, tax, accounting or financial advice. Rules and rates vary by place and change, so confirm them with the official source and a qualified professional before you act. Full terms are in our Terms of Service.
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