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Council raises transient lodging tax to 6% to add revenue to general fund
Summary
Council adopted on second reading an ordinance to raise the city transient lodging tax from 3% to 6%, adding an estimated $100,000 to the biennial budget; staff provided comparative rates for surrounding jurisdictions.
The Sandy City Council on July 21 approved an increase in the city transient lodging tax from 3 percent to 6 percent, a change staff said is expected to generate approximately $100,000 for the current biennium.
Finance staff presented comparative tables showing how the new city rate would fit into the cumulative lodging tax paid by visitors (state + county + city) and compared Sandy to neighboring jurisdictions. Staff told council that Sandy’s proposed increase would put the city’s lodging tax more in line with nearby communities; Mount Hood remains an outlier because it lacks a municipal rate but has higher average nightly rents.
Why it matters: The additional revenue was already built into the adopted biennial budget and will be used for general city purposes; staff said the change should not materially affect visitor demand at Sandy properties when compared to regional competitors.
Council action: Councilor Sheldon moved and Councilor Mayton seconded the motion to approve the second reading of Ordinance 2025‑22 to amend chapter 3.28 (transient lodging tax); the motion passed and the ordinance was adopted.
What’s next: The new rate will be applied per the ordinance and staff will notify lodging operators and update billing systems and public information.
