Oregon lodging taxes may fund local services and business grants

A local government may use a new or increased lodging tax if it spends the net revenue on listed purposes. This applies to a unit of local government imposing a transient lodging tax. At least half of the net revenue must fund tourism promotion, tourism-related facilities or restaurant and lodging small-business grants, or eligible facility debt. No more than half may fund city or county services, including services provided by a special district in place of the city or county. If tax revenue pays facility debt, the tax increase must be reduced by that amount when the debt is retired. The amended rules become operative January 1, 2027.

Local governments that impose lodging taxes must file biennial reports, and some groups receiving tax revenue must report to them. The reports cover units of local government that impose lodging taxes and entities receiving that tax revenue under an agreement. A city or county association may file for cities or counties that request it. Reports cover tax rates, revenue and spending, reserves, allocation changes, and oversight. Recipient groups report how they used funds and tourism performance measures. The first local government report is due by September 1, 2027, and reports are due every two years after that. This reporting section is repealed January 2, 2041.

The Legislative Revenue Officer must study how lodging tax revenue is divided among the listed purposes and report findings to lawmakers. The study covers spending on tourism promotion, tourism-related facilities, grants for small restaurant and lodging businesses, and city or county services. Local governments must provide tax collection and spending information needed for the study. The officer may consult interested groups. The report is due by September 15, 2034. The study section is repealed January 2, 2036.