Tillamook County commissioners approve sending 14% transient lodging tax amendment to May ballot

The Tillamook County Board of Commissioners voted to approve a third amendment to Ordinance No. 74 and will refer the measure to the May 2025 ballot. If approved by voters, the county TLT would increase to 12% effective Sept. 1, 2025 and to 14% effective July 1, 2026; cities would retain a credit of up to 11% on Sept. 1, 2025 and up to 13% on July 1, 2026.

The nut graf: The ordinance change keeps the existing 10% tax structure in place and directs the additional revenue — described in the ordinance as the “new money” — to tourism promotion and to offsetting budgeted general-fund costs for public safety and emergency services. The board approved the amended ordinance after a public hearing that drew multiple short-term rental (STR) owners and managers who objected to the size and timing of the increase; the vote was to refer the amendment, not to enact the tax immediately.

The ordinance preserves the current treatment of the first 10% of TLT revenues (no change to the existing 70/30 split used by the county). The proposed additional tax (the 4 percentage points that would bring the total from 10% to 14%) would follow the same 70/30 split: 70% of the new money for tourism promotion and tourism-related facilities and debt; 30% of the new money to offset county services. That 30% portion would be divided as follows: 80% to the Sheriff’s Office Fund for public-safety services, 10% to the county communications department fund for maintenance of the public-safety radio system (not to fund construction of the system), and 10% to the Emergency Management Department.

Chief Administrative Officer Rachel Hegarty summarized the changes for the board and the public, saying staff revised the draft ordinance after testimony at earlier hearings. The amendment also clarified effective dates and the city credit percentages to address concerns from lodging providers about existing reservations.

Public comment at the time‑certain hearing focused on the economic burden of the proposed increase and the timing of implementation. Heather Crawford, a licensed property manager in Tillamook County, said she is audited regularly and criticized what she called inaccurate characterizations of lodging revenues: “I am required to be precise with my finances down to the penny, and I’m audited regularly,” she told the board.

James Cope, speaking as an operator at a Rockaway Beach resort, warned that lodging operators face narrow margins and high cumulative tax burdens: “80% of our operating margin goes to taxes, which means that a 5% increase ... represents 25% of our remaining operating margin,” he said, urging the board to consider how the increase would affect off‑season occupancy and local businesses.

Managers and owners asked the board to stagger implementation and to align effective dates with calendar or fiscal years to ease bookkeeping and to avoid mid‑season changes. Jesse Mercero, who manages rentals in Manzanita, asked the board to consider a later start date and suggested Jan. 1 as a simpler point to implement a change in reporting: “January 1 would be the best possible way for us to implement a new tax because it affects the whole year instead of coming right in the middle of busy season,” Mercero said.

Commissioners said they had taken public input into account in redrafting the ordinance. Several commissioners noted the county’s limited revenue options and framed the proposal as one tool — not the only tool — to maintain current public‑safety and emergency services. Commissioners also said they want to work with lodging operators to reduce third‑party booking costs and to explore ways the 70% used for tourism promotion might better support local operators.

The board voted to approve the third amendment and to move forward with referral to the May 2025 ballot. The vote was recorded as all in favor. The ordinance text identifies the effective dates as Sept. 1, 2025 (12% county TLT) and July 1, 2026 (14% county TLT) and establishes the city credit percentages tied to those effective dates.

Ending: The action taken by the commissioners refers the tax question to voters in May 2025 and sets phased effective dates in the ordinance text. If voters approve, the new revenue formulas would take effect on the dates specified in the ordinance; if not approved, the county’s current 10% TLT structure remains in place.