House Revenue committee hears competing views on expanding uses of transient lodging tax

Chair Nathanson, chair of the House Committee on Revenue, opened an informational session June 4 on House Bill 3962 and the series of amendments that would change how local governments may count revenue from transient lodging taxes toward the statutorily required 70% for tourism promotion and tourism-related facilities.

The bill as amended in several proposals would expand the types of spending that qualify in that 70% category to include public safety and certain infrastructure. Local officials representing Clatsop County, Bend and Albany told the committee their communities need flexibility to use existing transient lodging tax (TLT) revenue to address tourism-driven demands on law enforcement, fire response, transportation and utilities. Representatives of lodging, restaurant and destination marketing organizations told the committee broad definitional changes would undermine multiyear tourism planning and could divert funds away from promotion.

The amendments described to the committee included: the dash-2 amendment, which would expand qualifying uses to include public safety and “facilities for water, wastewater, transportation and recreation;” the dash-5 amendment, which contains the same expansion plus a sunset date of Jan. 1, 2036, and reporting requirements to the Department of Revenue…