Oregon House committee hears hours of testimony on bill to let local governments redirect lodging-tax dollars to services

Chair Nathanson convened the House Committee on Revenue on Feb. 9 and opened a public hearing on House Bill 4148, which would change how local transient lodging tax (TLT) revenues are allocated. The bill would reduce the statewide minimum dedicated to tourism promotion from at least 70% to at least 40% and allow cities or counties to retain up to 60% for local services, including emergency services or services provided by special districts. It would take effect Jan. 1, 2027, include a reporting requirement to the Department of Revenue beginning Sept. 1, 2027, and repeal that reporting duty on Jan. 2, 2041.

Supporters argued the change is a targeted fix that preserves tourism promotion while giving communities flexibility to address strained infrastructure and public safety. Representative Jules Walters, the bill’s chief sponsor, said the measure “gives our communities the option for this source of revenue” to recoup the costs of emergency response, roads and wastewater without raising taxes. Senator Suzanne Webber described coastal towns that swell many…