Page 1 – COMPLAINT FOR DECLARATORY JUDGMENT 

PORTLAND CITY ATTORNEY’S OFFICE 

1221 SW 4TH AVENUE, RM 430 

PORTLAND, OREGON 97204 

(503) 823-4047

J. SCOTT MOEDE, Oregon State Bar ID Number 934816 

Chief Deputy City Attorney 

Email: Scott.Moede@portlandoregon.gov

KENNETH A. MCGAIR, Oregon State Bar ID Number 990148 

Senior Deputy City Attorney 

Email: Ken.McGair@portlandoregon.gov

DENIS VANNIER, Oregon State Bar ID Number 044406 

Deputy City Attorney 

Email: Denis.Vannier@portlandoregon.gov

SIMON WHANG, Oregon State Bar ID Number 035282 

Deputy City Attorney 

Email: Simon.Whang@portlandoregon.gov

Office of City Attorney 

1221 SW Fourth Avenue, Room 430 

Portland, OR 97204 

Tele: 503-823-4047 

Fax: 503-823-3089 

Of Attorneys for Plaintiff City of Portland 

UNITED STATES DISTRICT COURT 

DISTRICT OF OREGON 

PORTLAND DIVISION 

CITY OF PORTLAND, OREGON, a 

municipal corporation of the State of Oregon, 

 PLAINTIFF, 

 v. 

HOMEAWAY.COM, INC., a Delaware 

corporation, and HOMEAWAY, INC., a 

Delaware corporation

 DEFENDANTS.

COMPLAINT FOR DECLARATORY 

JUDGMENT OF UNLAWFUL 

ACTIVITY, INJUNCTIVE RELIEF TO 

ENSURE UNLAWFUL ACTIVITY 

CEASES, STATUTORY VIOLATIONS, 

AND TO REDUCE FINES AND 

PRESUMPTIVE TAXES TO JUDGMENT

Jury Trial Demanded 

Plaintiff City of Portland, a municipal corporation of the State of Oregon, alleges as 

follows: 

NATURE OF ACTION 

1. 

This is an action by the City of Portland against defendants for declaratory relief, 

Case 3:15-cv-01984-MO Document 1 Filed 10/21/15 Page 1 of 22
Page 2 – COMPLAINT FOR DECLARATORY JUDGMENT 

PORTLAND CITY ATTORNEY’S OFFICE 

1221 SW 4TH AVENUE, RM 430 

PORTLAND, OREGON 97204 

(503) 823-4047

injunctive relief, statutory violations, and to reduce fines and presumptive tax assessments to 

judgment for defendants’ failure to comply with the provisions of Chapter 6.04 of the Portland 

City Code entitled “Transient Lodgings Tax”. 

2. 

Defendants and VRBO.com (a website operated by defendants) (hereinafter collectively 

“HomeAway”) operate in the City of Portland, Oregon as Booking Agents and/or Operators of 

short-term rentals. HomeAway does not, however, comply with the applicable laws adopted by 

the City of Portland, Oregon for providing short-term rentals for transient lodging occupancy. 

3. 

This lawsuit seeks declaratory relief that HomeAway is subject to and in violation of the 

provisions of the City of Portland’s Transient Lodgings Tax found in Portland City Code 

(hereinafter “PCC”) Chapter 6.04 and seeks an injunction against HomeAway prohibiting it from 

conducting business (as defined in PCC 6.04.010 et. seq. as a Booking Agent as defined in PCC 

16.40.010 D or as an Operator as defined in PCC 6.04.010 M) within the City of Portland, 

Oregon, including through the use of the HomeAway.com and VRBO.com websites and similar 

websites operated by HomeAway, online platforms, and including contracting with owners and 

other persons providing short-term rentals as defined in 6.04.010 Q, unless and until HomeAway 

comes into compliance with the requirements of PCC Chapter 6.04 (Transient Lodgings Tax). 

4. 

This lawsuit also seeks to reduce assessed fines and presumptive taxes to judgment 

totaling $2,540,106. 

PARTIES 

5. 

Plaintiff City of Portland is a municipal corporation of the State of Oregon duly 

organized and existing under the laws of the State of Oregon. 

Case 3:15-cv-01984-MO Document 1 Filed 10/21/15 Page 2 of 22
Page 3 – COMPLAINT FOR DECLARATORY JUDGMENT 

PORTLAND CITY ATTORNEY’S OFFICE 

1221 SW 4TH AVENUE, RM 430 

PORTLAND, OREGON 97204 

(503) 823-4047

6. 

Defendants HomeAway.com, Inc. and HomeAway, Inc., are Delaware corporations, and 

VRBO.com is a website operated by defendants, and provide a service to customers called 

HomeAway Payments (hereinafter collectively “HomeAway”) with operations based in Austin, 

Texas, which are presently operating in Portland, Oregon, under the names of HomeAway.com 

and VRBO.com. 

VENUE AND JURISDICTION 

7. 

This Court has diversity jurisdiction over this matter pursuant to 28 USC §1332. Venue 

is proper in the United States District Court, District of Oregon, Portland Division. 

FACTUAL ALLEGATIONS 

8. 

PCC Chapter 6.04, entitled “Transient Lodgings Tax,” regulates the collection and 

remittance of taxes and imposes fines upon Booking Agents and Operators of short-term rentals 

for transient lodging occupancy for a period of 30 consecutive calendar days or less, counting 

portions of calendared days as full days. PCC 6.04.010. 

9. 

The Revenue Division of the Bureau of Revenue and Financial Services of the City of 

Portland (hereinafter “Revenue Division”) is responsible for enforcing the provisions of PCC 

Chapter 6.04. 

10. 

The provisions of PCC Chapter 6.04 provide a definition of “Operator” and “Booking 

Agent” under the transient lodgings tax. 

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Page 4 – COMPLAINT FOR DECLARATORY JUDGMENT 

PORTLAND CITY ATTORNEY’S OFFICE 

1221 SW 4TH AVENUE, RM 430 

PORTLAND, OREGON 97204 

(503) 823-4047

11. 

A “Booking Agent” means 

[A]n Operator or any person that provides a means through which 

a Host may offer a Short-Term Rental for transient lodging 

occupancy. This service is usually, though not necessarily, 

provided through an online platform and generally allows a Host to 

advertise the Short-Term Rental through a website provided by the 

Booking Agent’s hosting platform and provides a means for 

potential users to arrange transient lodging occupancy and 

payment, whether the transient pays rent directly to the Host or to 

the Booking Agent. Booking Agents include, but are not limited 

to: 

1. Online travel booking sites which are involved in the process of 

listing and booking Short-Term Rental transient lodging 

occupancies and handle any aspect of the resulting financial 

transaction; and/or 

2. Online travel booking sites for Short-Term Rental transient 

lodging occupancy where advertisements of Short-Term Rental 

transient lodging occupancy rentals are displayed; and/or 

3. A hosting or other online site that provides a means through 

which an Operator, Host or agent may offer a Short-Term Rental 

unit for transient lodging occupancy. 

PCC 6.04.010 D. 

12. 

An “Operator” means: 

[T]he person who is proprietor of the hotel in any capacity. Where 

the operator performs his/her functions through a managing agent 

of any type or character other than an employee, the managing 

agent shall also be deemed an operator for the purposes of this 

Chapter and shall have the same duties and liabilities as his/her 

principal. Compliance with the provisions of this Chapter by 

either the principal or managing agent shall be considered to be 

compliance by both. 

PCC 6.04.010 M. 

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Page 5 – COMPLAINT FOR DECLARATORY JUDGMENT 

PORTLAND CITY ATTORNEY’S OFFICE 

1221 SW 4TH AVENUE, RM 430 

PORTLAND, OREGON 97204 

(503) 823-4047

13. 

A “Host” means: 

[T]he owner or person who resides at the Short-Term Rental or has 

been designated by the owner or resident to manage the ShortTerm Rental and who rents out the Short-Term Rental for transient 

lodging occupancy either directly or through the use of a Booking 

Agent. 

PCC 6.04.010 J. 

14. 

PCC Chapter 6.04 requires Booking Agents and/or Operators to comply with various 

requirements outlined in Chapter 6.04. 

15. 

PCC 6.04.060 A governs registration by Operators and/or Booking Agents with the 

Revenue Division and provides: 

A. Every person engaging or about to engage in business as an 

operator of a hotel in this City shall register with the Bureau on a 

form provided by the Bureau. Operators starting business must 

register within 15 calendar days after commencing business. The 

privilege of registration after the date of imposition of such tax 

shall not relieve any person from the obligation of payment or 

collection of tax regardless of registration. Registration shall set 

forth the name under which an operator transacts or intends to 

transact business, the location of his place of business and such 

other information to facilitate the collection of the tax as the 

Bureau may require. The registration shall be signed by the 

operator. 

16. 

Failure to comply with PCC 6.04.060 A is subject to violations and civil penalties as 

provided in PCC 6.04.170. That section provides, in pertinent part, as follows: 

6.04.170 Violations. 

It is unlawful for any Operator or other person so required to fail or 

refuse to register as required herein, or to furnish any return 

required to be made, or fail or refuse to furnish a supplemental 

Case 3:15-cv-01984-MO Document 1 Filed 10/21/15 Page 5 of 22
Page 6 – COMPLAINT FOR DECLARATORY JUDGMENT 

PORTLAND CITY ATTORNEY’S OFFICE 

1221 SW 4TH AVENUE, RM 430 

PORTLAND, OREGON 97204 

(503) 823-4047

return or any other data required by the Bureau or to render a false 

or fraudulent return. No person required to make, render, sign, or 

verify any report shall make any false or fraudulent report, with 

intent to defeat or evade the determination of any amount due 

required by this Chapter. The Bureau Director may impose a civil 

penalty of up to $500 for each violation of this Chapter. A 

violation includes, but is not limited to: 

**** 

C. Failure to register a hotel or Short-Term Rental with the 

Bureau as described in Section 6.04.060; 

17. 

PCC Chapter 6.04.040 also governs additional duties of Booking Agents and Operators. 

18. 

PCC 6.04.040 B requires a Booking Agent or Operator to collect and remit the transient 

lodgings tax required for defined transactions and provides: 

B. An Operator or Booking Agent that directly or indirectly 

accepts, receives or facilitates payment, including through 

Application Programming Interfaces (APIs) or other computerized 

devices where third party providers receive information about a 

transaction and collect funds that may or may not be transmitted to 

the operator, owner or other person offering a Short-Term Rental, 

for the transient lodging occupancy from a transient is required to 

collect, report and remit transient lodging taxes to the City of 

Portland in accordance with this Chapter. 

19. 

Failure to comply with PCC 6.04.040 B is subject to violations and civil penalties as 

provided in PCC 6.04.170. That section provides, in pertinent part, as follows: 

6.04.170 Violations. 

It is unlawful for any Operator or other person so required to fail or 

refuse to register as required herein, or to furnish any return required 

to be made, or fail or refuse to furnish a supplemental return or any 

other data required by the Bureau or to render a false or fraudulent 

return. No person required to make, render, sign, or verify any report 

shall make any false or fraudulent report, with intent to defeat or evade 

the determination of any amount due required by this Chapter. The 

Case 3:15-cv-01984-MO Document 1 Filed 10/21/15 Page 6 of 22
Page 7 – COMPLAINT FOR DECLARATORY JUDGMENT 

PORTLAND CITY ATTORNEY’S OFFICE 

1221 SW 4TH AVENUE, RM 430 

PORTLAND, OREGON 97204 

(503) 823-4047

Bureau Director may impose a civil penalty of up to $500 for each 

violation of this Chapter. A violation includes, but is not limited to: 

A. Failure to file any required Transient Lodgings Tax payment 

and/or report, including any penalties and interest, within 60 days of 

the due date. 

20. 

PCC 6.04.060 A, B and C requires every person engaging in business as an operator of a 

hotel in the City of Portland to obtain a Transient Occupancy Registration Certificate by 

registering with the bureau on a form provided by the bureau that requires entities to provide the 

physical address of a transient lodging occupancy location within Portland and related contact 

information. PCC 6.04.060 C provides: 

C. Said certificate shall, among other things, state the following: 

1. The name of the operator; 

2. The address of the hotel; 

3. The date upon which the certificate was issued; 

4. “This Transient Occupancy Registration Certificate signifies 

that the person named has fulfilled the requirements of the 

Transient Lodgings Tax Chapter of the City of Portland for the 

purpose of collecting and remitting the lodgings tax. This 

certificate does not authorize any person to conduct any unlawful 

business or to conduct any lawful business in an unlawful manner, 

or to operate a hotel without strictly complying with all local 

applicable laws, including but not limited to those requiring a 

permit from any board, commission, department or office of the 

City of Portland. This certificate does not constitute a permit.” 

21. 

Failure to comply with the provision of PCC 6.04.060 C constitutes a violation under 

PCC 6.04.170 E, which provides in pertinent part: 

6.04.170 Violations. 

It is unlawful for any Operator or other person so required to fail or 

refuse to register as required herein, or to furnish any return required 

to be made, or fail or refuse to furnish a supplemental return or any 

other data required by the Bureau or to render a false or fraudulent 

Case 3:15-cv-01984-MO Document 1 Filed 10/21/15 Page 7 of 22
Page 8 – COMPLAINT FOR DECLARATORY JUDGMENT 

PORTLAND CITY ATTORNEY’S OFFICE 

1221 SW 4TH AVENUE, RM 430 

PORTLAND, OREGON 97204 

(503) 823-4047

return. No person required to make, render, sign, or verify any report 

shall make any false or fraudulent report, with intent to defeat or evade 

the determination of any amount due required by this Chapter. The 

Bureau Director may impose a civil penalty of up to $500 for each 

violation of this Chapter. A violation includes, but is not limited to: 

  

E. Failure to provide any data or other information requested by the 

Bureau, including but not limited to, the physical address of a 

transient lodging occupancy location within Portland and the related 

contact information. 

22. 

PCC 6.04.060 D requires entities to prominently display in the advertising the Accessory 

Short-Term Rental Permit or case file number. PCC 6.04.060 D provides: 

D. Operators of Type A and Type B accessory short-term rentals 

as described in Section Chapter 33.207 must include their Type A 

Permit Number or Type B Conditional Use case file number, as 

applicable, in all advertising and other listing services. No person 

shall advertise or otherwise represent that an accessory short-term 

rental has received approval unless that person holds a current, 

valid permit or Conditional Use case file. Additionally, this Permit 

Number or Conditional Use case file number shall be prominently 

displayed in the rental unit so as to be seen by all short-term 

occupants. 

23. 

Failure to comply with PCC 6.04.060 D is subject to violations and civil penalties found 

in PCC 6.04.170 G, which provides: 

6.04.170 Violations.

It is unlawful for any Operator or other person so required to fail or 

refuse to register as required herein, or to furnish any return 

required to be made, or fail or refuse to furnish a supplemental 

return or any other data required by the Bureau or to render a false 

or fraudulent return. No person required to make, render, sign, or 

verify any report shall make any false or fraudulent report, with 

intent to defeat or evade the determination of any amount due 

required by this Chapter. The Bureau Director may impose a civil 

penalty of up to $500 for each violation of this Chapter. A 

violation includes, but is not limited to: 

Case 3:15-cv-01984-MO Document 1 Filed 10/21/15 Page 8 of 22
Page 9 – COMPLAINT FOR DECLARATORY JUDGMENT 

PORTLAND CITY ATTORNEY’S OFFICE 

1221 SW 4TH AVENUE, RM 430 

PORTLAND, OREGON 97204 

(503) 823-4047

** ** 

G. Failure by a Booking Agent to prominently display the 

Accessory Short-Term Rental permit or case file number. 

24. 

PCC 6.04.090 provides for deficiency determinations and the assessment of presumptive 

taxes that should be filed and remitted. PCC 6.04.090 A provides as follows: 

6.04.090 Deficiency Determination; Fraud, Evasion, Operator 

Delay. 

A. Deficiency determinations. If the Bureau determines that a 

return is incorrect, that required reports or returns have not been 

filed, or that an operator has otherwise failed to comply with the 

terms of the Code, it may compute and determine or estimate the 

amount required to be paid based on the facts contained in the 

return or returns or any other information reasonably within its 

possession. Once a deficiency determination is made, the amount 

is due and payable ten days after service of a deficiency notice 

from the Bureau. The Bureau may also determine and assess 

penalties and interest as set forth in Section 6.04.080. 

1. In making a determination, the Bureau may offset 

overpayments, if any, which may have been previously made for a 

period or periods against any deficiency for a subsequent period or 

periods, or against penalties and interest on the deficiency. 

2. The Bureau shall give to the operator or transient (in the case of 

a refund request) a written notice of its determination. The notice 

may be served personally or by mail. If by mail, the notice shall be 

addressed to the operator at his/her address as it appears on the 

records of the Bureau or as the Bureau can best determine if the 

operator has not provided that information to the Bureau. In case 

of service by mail or any notice required by this Chapter, the 

service is complete at the time of deposit with the United States 

Post Office. 

3. Any deficiency is due and payable 10 days after the Bureau 

serves its written notice. The operator or transient (in the case of a 

refund request) may petition for a redetermination if the petition is 

filed within 10 days of service as provided in Section 6.04.100. 

Nothing prohibits the Bureau from extending the time for petition 

beyond 10 days at its discretion. 

4. Except as provided herein, every deficiency determination shall 

be made and notice mailed within 3 years after a return was 

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Page 10 – COMPLAINT FOR DECLARATORY JUDGMENT 

PORTLAND CITY ATTORNEY’S OFFICE 

1221 SW 4TH AVENUE, RM 430 

PORTLAND, OREGON 97204 

(503) 823-4047

originally filed or subsequently amended, whichever period expires 

later. In the case of the filing of a false or fraudulent return with 

the intent to evade this Chapter, a failure to file a required return, 

or willful refusal to collect and remit the tax, a deficiency 

determination may be made, or a proceeding for the collection of 

such deficiency may be commenced, at any time. 

25. 

Presumptive taxes are made in accordance with both the City and the Country Transient 

Lodgings Tax Ordinances. PCC 6.04.010, et seq.; MCC § 11.400, et. seq. The Ordinances 

provide that “[e]very operator renting rooms or space for lodging or sleeping purposes in this 

[jurisdiction], the occupancy of which is not exempted under the terms of this Chapter, shall 

collect a tax from the transient” to be turned over to the City of County. PCC 6.04.030 A; 

accord MCC § 11.403(A). The tax is paid “[f]or the privilege of occupancy.” PCC 6.04.020; 

MCC § 11.401(A). The amount of the tax is 6 percent of the “rent” charged by the operator in 

the City Ordinance, PCC 6.04.020, and 11.5 percent of the “rent” charged by the operator in the 

County Ordinance, MCC § 11.401(A), although the 6 percent City tax is credited against the 

11.5 percent due to the County, MCC § 11.419. 

26. 

Failure to provide data to the Revenue Division including but not limited to the physical 

address of a transient lodging occupancy location within Portland and related contact information 

also is subject to violations and civil penalties found in PCC 6.04.170 E, which provides: 

6.04.170 Violations.

It is unlawful for any Operator or other person so required to fail or 

refuse to register as required herein, or to furnish any return 

required to be made, or fail or refuse to furnish a supplemental 

return or any other data required by the Bureau or to render a false 

or fraudulent return. No person required to make, render, sign, or 

verify any report shall make any false or fraudulent report, with 

intent to defeat or evade the determination of any amount due 

required by this Chapter. The Bureau Director may impose a civil 

penalty of up to $500 for each violation of this Chapter. A 

violation includes, but is not limited to: 

Case 3:15-cv-01984-MO Document 1 Filed 10/21/15 Page 10 of 22
Page 11 – COMPLAINT FOR DECLARATORY JUDGMENT 

PORTLAND CITY ATTORNEY’S OFFICE 

1221 SW 4TH AVENUE, RM 430 

PORTLAND, OREGON 97204 

(503) 823-4047

**** 

E. Failure to provide any data or other information requested by 

the Bureau, including but not limited to, the physical address of a 

transient lodging occupancy location within Portland and the 

related contact information. 

27. 

Through third parties, HomeAway offers several ancillary products and services that 

include credit card merchant processing and eChecks which allows payment by accepting, 

receiving, or facilitating payments for rentals, insurance products, and tax return services which 

help their listing owners comply with applicable tax regulations. These products and services are 

integrated into HomeAway’s property owner and manager tools for which HomeAway receives a 

percentage of the revenue generated from the sale of these products and services.

28. 

HomeAway is illegally operating in the City of Portland in violation of PCC Chapter 

6.04. 

29. 

HomeAway with its affiliated entities operates the largest national and international 

online marketplace in the vacation rental industry. From 2006 to 2014, the number of listings on 

HomeAway’s network of websites grew from five websites with 60,000 listings to multiple sites 

with listings in 190 countries around the world. The number of listings on HomeAway’s 

websites now surpasses 1,000,000 (one million) listings worldwide. 

30. 

HomeAway and its affiliated Hosts have continually failed to comply with the 

requirements and duties established in PCC Chapter 6.04 after numerous warnings and assessed 

fines. To date, the violations of PCC Chapter 6.04 continue. 

For example, as specified in the City’s October 7, 2015, Revised Notice, HomeAway, 

doing business as HomeAway.com and VRBO.com, is in violation of the Portland City Code in 

Case 3:15-cv-01984-MO Document 1 Filed 10/21/15 Page 11 of 22
Page 12 – COMPLAINT FOR DECLARATORY JUDGMENT 

PORTLAND CITY ATTORNEY’S OFFICE 

1221 SW 4TH AVENUE, RM 430 

PORTLAND, OREGON 97204 

(503) 823-4047

the following ways: 

1. Failure to register with the Revenue Division within 15 calendar days after 

commencing business. As a Booking Agent and/or an Operator, HomeAway is 

subject to this requirement (PCC 6.04.060 A, 6.04.170 C) 

2. Failure to collect and remit the Transient Lodging Tax as required (PCC 6.04.040 

B, 6.04.170 A). 

3. Failure to provide the physical address of a transient lodging occupancy location 

within Portland and the related contact information upon request by the Revenue 

Division (PCC 6.04.060 C, 6.04.170 E). 

4. Failure to prominently display in the advertising on HomeAway.com and 

VRBO.com the Accessory Short-Term Rental permit or case file number. (PCC 

6.04.060 D, 6.04.170 G). 

5. Because transient lodging taxes have not been remitted, failure to pay 

presumptive taxes that should have been filed and remitted from listing sites. 

(PCC 6.04.090A). 

6. Failure to provide address and contact information of local Hosts by June 20, 

2015, upon request by the Revenue Division. (PCC 6.04.170E). 

31. 

HomeAway operates as both a Booking Agent and Operator as defined and regulated in 

PCC Chapter 6.04. 

32. 

The requirements of PCC Chapter 6.04 along with any penalties assessed for violations 

are applied to Booking Agents and Operators. It is not a defense to any regulatory action, 

including penalties, fines and taxes to assert that the City cannot act. 

33. 

Under PCC Chapter 6.04, entities like HomeAway cannot operate in the City of Portland 

in violation of Chapter 6.04. This includes the requirements to register, to collect and remit 

transient lodgings tax, to provide the physical address of a transient lodging occupancy location 

within Portland and the related contact information upon request and to prominently display in 

Case 3:15-cv-01984-MO Document 1 Filed 10/21/15 Page 12 of 22
Page 13 – COMPLAINT FOR DECLARATORY JUDGMENT 

PORTLAND CITY ATTORNEY’S OFFICE 

1221 SW 4TH AVENUE, RM 430 

PORTLAND, OREGON 97204 

(503) 823-4047

any advertising on HomeAway.com and VRBO.com the Accessory Short-Term Rental permits 

or case file numbers. 

34. 

The City of Portland asserts that HomeAway is a Booking Agent as defined in PCC 

6.04.010 D and is therefore in violation of PCC 6.04.060 A, 6.04.040 B, 6.04.060 C, 6.04.060 D 

and subject to fines under PCC 6.04.170 A, E and G. 

35. 

In addition to the violations outlined in ¶ 34 immediately above, because transient 

lodging taxes have not been remitted as a Booking Agent, the Revenue Division has assessed 

presumptive taxes that should have been filed and remitted from HomeAway in accordance with 

PCC 6.04.090 A. 

36. 

The City of Portland asserts that HomeAway is an Operator as defined in PCC 6.04.010 

M and is therefore in violation of PCC 6.04.060 A, 6.04.040 B, 6.04.060 C, 6.04.060 D and 

subject to fines under PCC 6.04.170 A, E and G. 

37. 

Additionally, any individual or family residing in a dwelling unit who rents bedrooms to 

overnight guests for less than 30 days must obtain an Accessory Short-Term Rental permit which 

includes a safety inspection to protect the public. PCC 33.207. 

38. 

Operators of such Accessory Short-Term rentals and HomeAway as an Operator and/or 

Booking Agent are required to include the permit number or case file number in all advertising 

and listing services. PCC 6.04.060 D, 6.04.170 G. HomeAway has provided no evidence of 

compliance with these requirements or provided the physical address and contact information for 

Short-Term Rental listings on its websites to the Revenue Division. 

Case 3:15-cv-01984-MO Document 1 Filed 10/21/15 Page 13 of 22
Page 14 – COMPLAINT FOR DECLARATORY JUDGMENT 

PORTLAND CITY ATTORNEY’S OFFICE 

1221 SW 4TH AVENUE, RM 430 

PORTLAND, OREGON 97204 

(503) 823-4047

39. 

In addition to the violations outlined in ¶ 36 above, because transient lodging taxes have 

not been remitted as an Operator, the Revenue Division has assessed presumptive taxes that 

should have been filed and remitted from HomeAway in accordance with PCC 6.04.090 A. 

40. 

On January 30, 2015, the Revenue Division sent HomeAway Notice letters that on 

January 21, 2015, the Portland City Council passed Ordinance No.186985 (amendments to PCC 

Chapter 6.04). (See Exhibits 1, 2). On March 5, 2015, the Revenue Division sent HomeAway a 

Notice of Non-Compliance letter regarding PCC Chapter 6.04. (See Exhibit 3). On May 19, 

2015, the Revenue Division sent HomeAway.com, Inc. a Notice of Violation of PCC Chapter 

6.04. (See Exhibit 4). On June 3, 2015, the Revenue Division sent VRBO.com a Notice of 

Violation of PCC Chapter 6.04. (See Exhibit 5). 

41. 

The May 19, 2015, and June 3, 2015, notices also included a “Your Right to Appeal” 

Notice. (See Exhibit 6). 

42. 

HomeAway has not complied with the appeal provisions noticed in Exhibit 6 and 

accompanying Portland City Code. 

43. 

In the May 19, 2015, and June 3, 2015, notices, the Revenue Division required 

HomeAway.com and VRBO.com to provide address and contact information of local hosts by 

June 20, 2015. HomeAway did not provide any such information to Revenue for the listings on 

either booking site. Failure to provide any data requested by Revenue is a violation of Portland 

City Code resulting in a civil penalty of up to $500 for each violation in accordance with PCC 

6.04.170 E. 

Case 3:15-cv-01984-MO Document 1 Filed 10/21/15 Page 14 of 22
Page 15 – COMPLAINT FOR DECLARATORY JUDGMENT 

PORTLAND CITY ATTORNEY’S OFFICE 

1221 SW 4TH AVENUE, RM 430 

PORTLAND, OREGON 97204 

(503) 823-4047

44. 

On October 7, 2015, the Revenue Division sent HomeAway a revised Notice of Violation 

regarding PCC Chapter 6.04 referencing the May 19, 2015, Notice and June 3, 2015, Notice. 

(See Exhibit 7). 

45. 

The October 7, 2015, Notice of Violation or Revised Notice of Violation also included 

the “Your Right to Appeal” Notice. (See Exhibit 8). 

46. 

The October 7, 2015, Revised Notice of Violation together with the Your Right to Appeal 

Notice required HomeAway to pay $2,540,106 and submit a Petition for Redetermination no 

later than October 19, 2015. At the time of the filing of this Complaint, no fines have been paid, 

no taxes have been paid, and no valid petition has been filed by HomeAway. 

47. 

Currently, HomeAway is illegally operating as a Short-Term Rental company in violation 

of PCC Chapter 6.04. In so doing, HomeAway is willfully refusing to comply with the Portland 

City Code and the regulations therein which were enacted to protect the people of the City of 

Portland. 

48. 

A cease-and-desist letter was sent to HomeAway on October 20, 2015. (See Exhibit 9). 

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Case 3:15-cv-01984-MO Document 1 Filed 10/21/15 Page 15 of 22
Page 16 – COMPLAINT FOR DECLARATORY JUDGMENT 

PORTLAND CITY ATTORNEY’S OFFICE 

1221 SW 4TH AVENUE, RM 430 

PORTLAND, OREGON 97204 

(503) 823-4047

FIRST CLAIM FOR RELIEF – UNLAWFUL ACTIVITY 

(Declaratory Judgment Under ORS 28.010, 28.020, Portland City Charter 1-103, ORS 30.310, ORS 

30.315 Declaring that HomeAway is Subject to Chapter 6.04 of the Portland City Code as a 

Booking Agent and is in Violation of the Portland City Code Chapter 6.04 as a Booking Agent) 

49. 

The allegations contained in paragraphs 1 through 48, above, are hereby incorporated by 

this reference. 

50. 

HomeAway is subject to the provisions of PCC Chapter 6.04 as a Booking Agent. 

51. 

HomeAway is in violation of PCC Chapter 6.04 as a Booking Agent. 

52. 

HomeAway’s failure to comply with PCC Chapter 6.04 as a Booking Agent harms the 

public interest by depriving the public of the rights and protections provided in Chapter 6.04. 

SECOND CLAIM FOR RELIEF – UNLAWFUL ACTIVITY 

(Declaratory Judgment Under ORS 28.010, 28.020, Portland City Charter 1-103, ORS 30.310, 

ORS 30.315 Declaring that HomeAway is subject to Chapter 6.04 of the Portland City Code as 

an Operator and is in violation of the Portland City Code Chapter 6.04 as an Operator) 

53. 

The allegations contained in paragraphs 1 through 52, above, are hereby incorporated by 

this reference. 

54. 

HomeAway is subject to the provisions of PCC Chapter 6.04 as an Operator. 

55. 

HomeAway is in violation of PCC Chapter 6.04 as an Operator. 

56. 

HomeAway’s failure to comply with PCC Chapter 6.04 as an Operator harms the public 

interest by depriving the public of the rights and protections provided in Chapter 6.04. 

Case 3:15-cv-01984-MO Document 1 Filed 10/21/15 Page 16 of 22
Page 17 – COMPLAINT FOR DECLARATORY JUDGMENT 

PORTLAND CITY ATTORNEY’S OFFICE 

1221 SW 4TH AVENUE, RM 430 

PORTLAND, OREGON 97204 

(503) 823-4047

THIRD CLAIM FOR RELIEF – REDUCING FINES TO JUDGMENT 

(Action Under ORS Portland City Charter 1-103, ORS 30.310 and ORS 30.315 to Reduce Fines to 

Judgment Against HomeAway for its Violations of Chapter 6.04 as a Booking Agent) 

57. 

The allegations contained in paragraphs 1 through 56 are hereby incorporated by this 

reference. 

58. 

As outlined in the Revised Notice of Violation letter dated October 7, 2015, 

HomeAway.com and VRBO.com have been assessed civil penalties in the amount of $491,500 

and $516,000 respectively, totaling $1,007,500 for violations of PCC Chapter 6.04 as a Booking 

Agent. HomeAway is in violation and subject to fines in accordance with PCC Chapter 6.04. 

59. 

On October 7, 2015, HomeAway was provided a Revised Notice of Violation outlining 

the amounts of fines. At the time of the filing of this complaint, no fines have been paid and no 

valid petition has been filed by HomeAway. 

60. 

Therefore, the fines in the amount of $1,007,500, plus interest and penalties allowed 

under Chapter 6.04, should be reduced to judgment. 

FOURTH CLAIM FOR RELIEF – REDUCING FINES TO JUDGMENT 

(Action Under ORS Portland City Charter 1-103, ORS 30.310 and ORS 30.315 to Reduce Fines 

to Judgment Against HomeAway for its Violation of Chapter 6.04 as an Operator) 

61. 

The allegations contained in paragraphs 1 through 60 are hereby incorporated by this 

reference. 

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62. 

Case 3:15-cv-01984-MO Document 1 Filed 10/21/15 Page 17 of 22
Page 18 – COMPLAINT FOR DECLARATORY JUDGMENT 

PORTLAND CITY ATTORNEY’S OFFICE 

1221 SW 4TH AVENUE, RM 430 

PORTLAND, OREGON 97204 

(503) 823-4047

As outlined in the Revised Notice of Violation letter dated October 7, 2015, 

HomeAway.com and VRBO.com have been assessed civil penalties in the amount of $491,500 

and $516,000 respectively, totaling $1,007,500 for violations of PCC Chapter 6.04 as an 

Operator. HomeAway is in violation and subject to fines in accordance with PCC Chapter 6.04. 

63. 

On October 7, 2015, HomeAway was provided a Revised Notice of Violation outlining 

the amounts of fines. At the time of the filing of this complaint, no fines have been paid and no 

valid petition has been filed by HomeAway. 

64. 

Therefore, the fines in the amount of $1,007,500, plus interest and penalties allowed 

under Chapter 6.04, should be reduced to judgment. 

FIFTH CLAIM FOR RELIEF – REDUCING PRESUMPTIVE TAXES TO JUDGMENT 

(Action Under ORS Portland City Charter 1-103, ORS 30.310 and ORS 30.315 to Reduce Taxes 

to Judgment Against HomeAway for its Violation of Chapter 6.04 as a Booking Agent) 

65. 

The allegations contained in paragraphs 1 through 64 are hereby incorporated by this 

reference. 

66. 

As outlined in the Revised Notice of Violation letter dated October 7, 2015, 

HomeAway.com and VRBO.com have been assessed presumptive taxes in the amount of 

$766,303 and $766,303 respectively, totaling $1,532,606 for violations of PCC Chapter 6.04 as a 

Booking Agent. HomeAway is in violation and subject to taxes in accordance with PCC Chapter 

6.04. 

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Case 3:15-cv-01984-MO Document 1 Filed 10/21/15 Page 18 of 22
Page 19 – COMPLAINT FOR DECLARATORY JUDGMENT 

PORTLAND CITY ATTORNEY’S OFFICE 

1221 SW 4TH AVENUE, RM 430 

PORTLAND, OREGON 97204 

(503) 823-4047

67. 

On October 7, 2015, HomeAway was provided a Revised Notice of Violation outlining 

the amounts of taxes. At the time of the filing of this complaint, no taxes have been paid and no 

valid petition has been filed by HomeAway. 

68. 

Therefore, the presumptive taxes in the amount of $1,532,606, plus interest and penalties 

allowed under Chapter 6.04, should be reduced to judgment. 

SIXTH CLAIM FOR RELIEF – REDUCING PRESUMPTIVE TAXES TO JUDGMENT 

(Action Under ORS Portland City Charter 1-103, ORS 30.310 and ORS 30.315 to Reduce Taxes 

to Judgment Against HomeAway for its Violation of Chapter 6.04 as an Operator) 

69. 

The allegations contained in paragraphs 1 through 68 are hereby incorporated by this 

reference. 

70. 

As outlined in the Revised Notice of Violation letter dated October 7, 2015, 

HomeAway.com and VRBO.com have been assessed civil penalties in the amount of $766,303 

and $766,303 respectively, totaling $1,532,606 for violations of PCC Chapter 6.04 as an 

Operator. HomeAway is in violation and subject to taxes in accordance with PCC Chapter 6.04. 

71. 

On October 7, 2015, HomeAway was provided a Revised Notice of Violation outlining 

the amounts of taxes. At the time of the filing of this complaint, no taxes have been paid and no 

valid petition has been filed by HomeAway. 

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Case 3:15-cv-01984-MO Document 1 Filed 10/21/15 Page 19 of 22
Page 20 – COMPLAINT FOR DECLARATORY JUDGMENT 

PORTLAND CITY ATTORNEY’S OFFICE 

1221 SW 4TH AVENUE, RM 430 

PORTLAND, OREGON 97204 

(503) 823-4047

72. 

Therefore, the presumptive taxes in the amount of $1,532,606, plus interest and penalties 

allowed under Chapter 6.04, should be reduced to judgment. 

SEVENTH CLAIM FOR RELIEF – INJUNCTION – COURT INTERVENTION 

NECESSARY TO INSURE UNLAWFUL ACTIVITIES CEASE 

73. 

The allegations contained in paragraphs 1 through 72, above, are hereby incorporated by 

this reference. 

74. 

This court has jurisdiction to enjoin HomeAway in accordance with FRCP 65, Chapter 

1-103 of the Charter of the City of Portland, PCC Chapter 6.04 and 33.207, ORS 28.010, ORS 

28.020, ORS 30.310, and ORS 30.315. 

75. 

An injunction would be appropriate because HomeAway is illegally providing 

Short-Term Rentals without complying with numerous provisions of PCC Chapter 6.04, which 

are designed to protect the public health, safety, and welfare outlined above. The list of statutory 

violations outlined above is not exclusive, and plaintiff reserves the right to rely on other and 

further violations of the law which are discovered in the course of discovery and investigation 

into this matter. 

76. 

HomeAway’s above-listed operation poses an immediate, real, and substantial violation 

of the Portland City Code. 

77. 

HomeAway’s operations pose an immediate, real, and substantial threat to the public 

including, but not limited to, the fact that HomeAway lists properties in the City of Portland for 

short-term rental which have not complied with health and safety inspections required of 

Case 3:15-cv-01984-MO Document 1 Filed 10/21/15 Page 20 of 22
Page 21 – COMPLAINT FOR DECLARATORY JUDGMENT 

PORTLAND CITY ATTORNEY’S OFFICE 

1221 SW 4TH AVENUE, RM 430 

PORTLAND, OREGON 97204 

(503) 823-4047

accessory short-term rentals under PCC 33.207. Further, the City is being deprived of revenue 

from transient lodging taxes required from any short-term rental. Finally, the public is 

unwittingly deprived of the benefits and protections of Portland City Code by virtue of the fact 

that HomeAway willfully ignores such laws and disclaims any responsibility. 

78. 

City of Portland seeks an injunction immediately enjoining HomeAway from conducting 

business as a Booking Agent or Operator within the City of Portland, Oregon, including the use 

of any smartphone application, website or other platform and including contracting with 

unpermitted property owners, unless and until HomeAway comes into compliance with the 

provisions of PCC Chapter 6.04 (Transient Lodgings Tax). 

79. 

No equitable defenses exist and the public interest would be served by granting an 

injunction. 

80. 

Plaintiff demands a jury trial pursuant to FRCP 38 on all issues. 

WHEREFORE, based upon the foregoing, the City of Portland seeks an order as follows: 

(a) For an order declaring that HomeAway is subject to Chapter 6.04 of the 

Portland City Code as a Booking Agent and that HomeAway is in violation of 

Chapter 6.04 of the Portland City Code as a Booking Agent. 

(b) For an order declaring that HomeAway is subject to Chapter 6.04 of the 

Portland City Code as an Operator and that HomeAway is in violation of 

Chapter 6.04 of the Portland City Code as an Operator. 

(c) That all fines and taxes issued against HomeAway as a Booking Agent be 

reduced to judgment plus interest and penalties allowed by law. 

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Case 3:15-cv-01984-MO Document 1 Filed 10/21/15 Page 21 of 22
Page 22 – COMPLAINT FOR DECLARATORY JUDGMENT 

PORTLAND CITY ATTORNEY’S OFFICE 

1221 SW 4TH AVENUE, RM 430 

PORTLAND, OREGON 97204 

(503) 823-4047

(d) That all fines and taxes assessed against HomeAway as an Operator be 

reduced to judgment plus interest and penalties allowed by law. 

(e) That a preliminary injunction be issued immediately enjoining HomeAway 

from conducting business under Chapter 6.04 of the Portland City Code 

within the City of Portland, Oregon including through the use of any 

smartphone application, website or other similar means of operation and 

including contracting with property owners, unless and until HomeAway 

comes into compliance with the provisions of Chapter 6.04 of the Portland 

City Code. 

(f) That the court, after a trial on the merits, issue a permanent injunction against 

HomeAway, enjoining it from operating as a short-term rental company in the 

City of Portland, Oregon. 

(g) For its reasonable attorney’s fees and costs and whatever other relief the court 

deems just and proper in this case. 

Dated: October 21, 2015 

Respectfully submitted, 

/s/ J. Scott Moede 

J. SCOTT MOEDE, OSB # 934816 

Chief Deputy City Attorney 

KENNETH A. McGAIR, OSB #990148 

Senior Deputy City Attorney 

DENIS VANNIER, OSB #044406 

Deputy City Attorney 

SIMON WHANG, OSB #035282 

Deputy City Attorney 

Telephone: (503) 823-4047 

Case 3:15-cv-01984-MO Document 1 Filed 10/21/15 Page 22 of 22