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Talent council discusses expanding collection, potential rate increase for transient lodging tax
Summary
Council members supported pursuing state collection via an intergovernmental agreement and several expressed interest in raising Talent's transient lodging tax from 6% to 10% or 11%, with possible uses focused on events and parks.
City staff asked the Talent City Council on July 2 for direction on whether to pursue changes to local transient lodging tax (TLT) collection and on how council would like any increased revenue to be used.
City Manager Alex explained the city's current local TLT dates to 1992 and that state law changes in 2018'19 authorized taxing intermediaries such as Airbnb. The city has not yet acted to collect through those new statutory channels, limiting collections, Alex said.
Alex said staff's two recommended steps were: 1) update local code to add transient lodging intermediaries so platform bookings are taxable locally, and 2) sign an intergovernmental agreement (IGA) with the Oregon Department of Revenue (staff referred to the state collection system) for the state to collect local TLT on the city's behalf. Alex told the council that the Department of Revenue said it typically needs about 90 days after a signed agreement to begin collecting on a jurisdiction's behalf.
Councilors discussed whether to raise Talent's TLT rate from the current 6 percent. Multiple councilors said they would support raising the rate to 10 percent or 11 percent to align more closely with neighboring Ashland, while others emphasized deciding how new funds would be spent.
Councilor Byers and others urged that if revenues grow the money be used primarily for parks and community livability — weed and blackberry abatement, park maintenance, and long-deferred projects such as tennis-court replacement — so current residents would benefit. Several councilors and members of the public proposed using revenue for place-making and events, with multiple councilors specifically naming the Talent Harvest Festival as a possible ongoing beneficiary.
Councilor Panomarev noted the public is generally more accepting of a tax when its purpose is clear and suggested dedicating funds to events or other 'visitor-attraction' categories. Councilor Coley said an IGA for state collection made sense and supported raising the rate to 10 percent.
Alex estimated current annual TLT revenue at about $5,000 and said staff is optimistic that code changes plus state collection could raise that amount; he asked council whether the current 6 percent rate should be retained. The council gave clear direction that staff should draft code to allow state collection and return with proposed ordinance language and options on rate and allocation of revenue.
No formal ordinance amending the tax rate was adopted at the meeting; staff will return with draft code and recommendations for allocation and implementation timelines.
