Seaside settles claim with Shilo Inn over back taxes

Published 12:53 pm Monday, December 30, 2019

SEASIDE — The city has dropped a lawsuit against the Shilo Inn over unpaid lodging taxes after the hotel chain agreed to pay.

Earlier this month, the city filed suit against the Shilo Inn in Clatsop County Circuit Court seeking almost $150,000 in unpaid lodging taxes for the quarter ending in September, with an additional 25% penalty of more than $37,000.

Last week, City Attorney Dan Van Thiel filed a motion to dismiss the case.

A total of $187,000 in third quarter lodging taxes and the penalty will be paid by Shilo Inn in two installments, according to Van Thiel, with half due Tuesday and the remaining balance due Jan. 31.

“We will be getting the full amount,” Van Thiel said.

In addition, Shilo Inn will pay taxes due for the fourth quarter of 2019 by the end of January, with a report delivered Jan. 15. “We don’t know what that will be until we receive the report,” Van Thiel said.

On Thursday, Judge Dawn McIntosh dismissed the case without additional costs to either party beyond the taxes and penalty.

“Because the penalties are so high, I’m not going to quibble over attorney’s fees,” Van Thiel said.

In June, the city sued Shilo Inn for more than $45,000 in lodging taxes for the period ending in April. With penalties and interest, the total sought was more than $58,000.

That suit was closed in October after Shilo Inn paid the taxes and the penalty.