The Oregon Legislature has passed HB 4148, which, if signed by Governor Kotek, will provide local governments with more flexibility when it comes to spending transient lodging tax (TLT) revenue.
HB 4148's Changes to Transient Lodging Tax (TLT) Allocation
HB 4148 amends ORS 320.350 to increase the percentage TLT revenue that can be used for funding city and county services from 30 percent to 50 percent, while the percentage of TLT revenue that must be used for funding tourism or financing/refinancing the debt of tourism-related facilities (plus administrative costs) has been decreased from 70 percent to 50 percent.
Furthermore, HB 4148 provides that in addition to funding tourism promotion or tourism-related facilities, TLT can be used to fund resiliency grants for small businesses in the restaurant or lodging industry.
These amendments are set to become operative on January 1, 2027, and apply to net revenue collected before, on, or after HB 4148’s expected effective date (which, provided Governor Kotek signs the bill, will be sometime in early June).
Reporting Requirements for Local Governments
While these changes are likely welcomed by local governments collecting TLT, there is a tradeoff in the form of new reporting requirements. HB 4148 also requires local governments that impose TLT under ORS 320.345 to 320.365 to file a biennial report with the Legislative Revenue Officer no later than September 1 of each odd-numbered year, beginning in 2027.
The biennial report, generally, must detail TLT rates, the amount of revenue collected, and information about how it was spent. Specifics of what the biennial report must include are laid out in the bill, along with a provision that allows the League of Oregon Cities or the Association of Oregon Counties, as appropriate, to file the report on behalf of cities and counties. Destination management organizations, as well any other entity receiving TLT revenue under an agreement with a local government, are also required to submit biennial reports to the applicable local government for inclusion in the local government’s report.
If you have questions about HB 4148, please contact a member of Miller Nash’s public entities team.
This article is provided for informational purposes only—it does not constitute legal advice and does not create an attorney-client relationship between the firm and the reader. Readers should consult legal counsel before taking action relating to the subject matter of this article.
