Commissioners put tourism lodging tax repartition bills on watch amid concerns about protecting local tourism funding

Deschutes County Board of Commissioners · February 5, 2026

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Summary

Staff briefed HB4148 and SB1562, which would change the split of tourism lodging tax revenue and allow special districts to be eligible for funds; commissioners emphasized keeping locally approved tourism funding intact and left the bills in a watch posture.

County staff briefed the board on two companion bills (HB4148 and SB1562) proposing changes to the allocation of tourism lodging tax (TLT) revenue and the pool of eligible recipients.

Robert and other staff explained the bills would permit jurisdictions to reallocate percentages (an example read at the briefing shifts a prior 70/30 tourism/county split toward a 40/60 split) and would allow special districts to be eligible for funding for services previously eligible only to cities or counties. Staff cautioned that the bills are permissive — jurisdictions "may" elect reallocation rather than being required to do so — and that existing voter-intent language tied to prior local TLT increments (for example, a dedicated 1% passed by voters for tourism promotion) could constrain local changes.

Several commissioners said they wanted to keep tourism funding whole and predictable for local marketing and industry stability; business stakeholders in the county had expressed concern about damaging the tourism industry if allocations were restructured. Commissioners left the proposal on 'watch' and asked staff to continue tracking the bills and any language that could affect current voter-approved uses.

Why it matters: changes to TLT allocation can affect tourism promotion budgets, county services paid from TLT, and local economic development priorities. Because the bills are optional for jurisdictions, the county retains local discretion, but commissioners signaled caution.

What’s next: staff will monitor amendments and report back to the commission.