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Newport staff urged support for state bill to let cities spend lodging tax on 'tourism‑impacted' services

3200600 · May 5, 2025
AI-Generated Content: All content on this page was generated by AI to highlight key points from the meeting. For complete details and context, we recommend watching the full video. so we can fix them.

Summary

City staff summarized a League of Oregon Cities bill scheduled for a May 8 House Revenue hearing that would add a "tourism‑impacted services" category to existing lodging‑tax rules, allowing restricted funds to be used for infrastructure such as water, streets and public safety.

City staff briefed the Newport City Council at a work session on a League of Oregon Cities–backed bill now scheduled for a May 8 House Revenue Committee hearing that would add a new category, "tourism‑impacted services," to the state lodging‑tax spending rules.

City staff said the bill would not change the existing 70%/30% split that governs lodging tax distribution but would create an additional definition inside the 70% portion. That new category would allow cities to use some restricted lodging‑tax dollars for infrastructure and services that are affected by tourism, including public safety, water and wastewater, transportation and parks, staff said.

According to staff, the League is asking cities to sign up in support for the hearing and to submit testimony. Staff described an earlier version of the measure that failed to clear a committee and said the current version—described in the meeting as a "-2" iteration—was routed to the House Revenue Committee. Staff also said opponents are likely to include organizations whose role is tourism promotion, which could express concern that the change would reduce promotional funding.

One council member offered to testify remotely and to circulate the link and information staff had received from the League's lobbyist. Staff said the League provided a link to sign up, that in‑person testimony is encouraged but remote testimony and written testimony can be submitted, and that written testimony is accepted up to 48 hours after a hearing. Staff advised that it is often effective for multiple cities to submit supporting testimony to balance written opposition from marketing organizations.

No formal city action or vote was taken at the work session. Staff said they can prepare testimony and coordinate council participation if the council wishes to sign up collectively or submit individual comments.

For takeaways, staff recommended signing up to register support for the public hearing and offered to circulate the hearing link and suggested talking points from the League of Oregon Cities.