Bridal Oregon discusses impacts of transient lodging tax on state tourism

The Joint Committee on Ways and Means Subcommittee on General Government convened on May 27, 2025, to discuss key issues surrounding Oregon's tourism funding and the management of the transient lodging tax. The meeting featured Todd Davidson, CEO of Travel Oregon, who provided insights into the agency's operations and funding mechanisms.

Davidson began by addressing the importance of Travel Oregon in promoting the state as a travel destination. He highlighted the establishment of the agency in 2003 as a semi-independent public entity, funded by a statewide lodging tax that was initially set at 1% and later increased to 1.5%. This tax is designed to keep Oregon competitive with other states while minimizing the financial burden on local lodging operators, who also face additional county and city lodging taxes.

During the discussion, committee members raised concerns about the effective use of the transient lodging tax. Davidson emphasized that the current funding structure allows Oregon to remain competitive in the tourism sector. However, he acknowledged potential issues when local entities do not utilize their allocated tax funds for promotional activities, suggesting that such practices could hinder the state's overall tourism efforts.

The conversation also touched on House Bill 3556, which focuses on local transient lodging taxes and their allocation by various municipalities. Davidson's responses indicated a need for transparency and accountability in how these funds are managed at the local level.

The meeting concluded with a consensus on the importance of effective tax utilization to bolster Oregon's tourism industry. The committee plans to continue monitoring the impact of these funding mechanisms on the state's competitiveness in attracting visitors. Further discussions and follow-up actions are expected as the committee evaluates the outcomes of the current funding strategies.