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City of Salem Sues Shilo Inns

SALEM, Ore. (AP) – The City of Salem is suing Shilo Inns, claiming the company has refused to pay over $143,000 in unpaid room taxes, penalties and interest dating back to the summer of 2018.

The Statesman Journal reports the lawsuit was filed in Marion County Circuit Court last week.

Court records say Salem’s Shilo Inns on Market Street NE failed to pay taxes from July 2018 through March 2019, with the exception of February 2019. Records say the company also failed to pay interest and penalties.

Salem collects a 9% transient occupancy tax from hotels, motels and Airbnb rentals.

Shilo Management Corp. in Portland’s chief executive officer Larry Chank attributed the unpaid taxes to bookkeeping issues partly brought about by the company moving its corporate offices across town. Chank says he expects Shilo Inns to pay the tax bill in coming weeks.

Information from: Statesman Journal,

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