Clatsop County holds public hearing on proposed transient lodging tax increase; second reading set for Sept. 10

Clatsop County commissioners held a public hearing Aug. 27 on a proposed ordinance that would consolidate transient lodging tax (TLT) code sections and raise the countywide rate to provide discretionary funds for public safety and rural fire agencies.

Gail Henderson, county development director, told the board the countywide TLT rate has historically been small and that an increase is intended to address long-standing impacts of tourism on county services, including law enforcement, jail, prosecutorial services and volunteer fire districts. Henderson said the current countywide rate is 1 cent and staff recommend increasing the countywide rate to 3 percent; the new rate — if adopted — would be effective Jan. 1, 2026, with the first county receipts from the change arriving in April 2026.

Henderson explained the statute governing TLT allocations has evolved: after February 2003, 70 percent of certain TLT revenue must be used for tourism promotion and tourism-related facilities while 30 percent is flexible. Henderson said the county’s proposed ordinance would clarify allowable uses of discretionary funds for the portion of TLT raised after 2003, and would include language allowing the board to lower the rate by resolution if future state law provides greater local flexibility.

The presentation included county crash and public-safety data used to justify the funding need: Henderson said roughly one-third of arrests, bookings, traffic citations and crashes occur in periods of elevated visitor population, and noted a previous county presentation showing alcohol- or drug-involved crashes exceed the statewide average.

Commissioners debated policy and equity questions. Commissioner Thompson and others said they supported a measurable target to fund core public safety needs and praised staff for providing data that shows tourism increases daily population and demand on public services. Commissioner Banks expressed concerns about the allocation and accountability at the state transportation agency level and said she would withhold support for a statement backing the legislative proposal that would have increased revenues statewide. Commissioner Webb urged continued engagement with industry stakeholders and noted the lodging industry and Oregon Trucking Association have engaged in recent hearings.

Board members and staff also discussed parallel legislative options: during the 2025 legislative session proposals were filed to (1) change the definition of allowable uses to include public safety and infrastructure and (2) change the TLT allocation from a 70/30 split to a 60/40 split in favor of increased discretionary funds; neither bill passed this year, Henderson said. Staff said the county remains open to legislative solutions but needs a near-term local option for revenue stability.

No members of the public had signed up to speak at the hearing. After discussion, a commissioner moved to continue the matter to the board’s Sept. 10 meeting for a second reading; the motion passed without recorded objection.

If adopted on Sept. 10, staff told the board the effective date for the ordinance would be 30 days after adoption with the rate change taking effect Jan. 1, 2026. The ordinance as drafted contains a maximum rate and explicit language allowing the board to adopt a lower rate by resolution should state action later change the allowable split for TLT dollars.