House committee debates local lodging tax changes, weighs 50/50 split and resiliency grants; work session carried to next day

House Committee on Revenue · February 18, 2026

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Summary

Committee members heard competing amendment packages for HB 4148 that would reset local transient lodging tax (TLT) spending splits (including proposals for a 50/50 tourism/general fund split and a resiliency grant program for hotels and restaurants). The committee discussed administration, reporting (LRO vs. LPRO) and local control and carried the work session to the next meeting.

Committee members spent a prolonged work session considering multiple amendment packages to HB 4148, which would alter allowable uses and splits of local transient lodging tax (TLT) revenue.

Elizabeth Howe of the Oregon Restaurant & Lodging Association described a Dash 1 amendment that would allow cities and counties to spend up to 50% of existing unrestricted TLT collections for general purposes as of July 2026 while maintaining a 70/30 split in favor of tourism for any incremental future local TLT increases. Representative Walters described a Dash 11 and a compromise Dash 7 that would change the allocation split (moving toward a 50/50 baseline), create a resiliency fund for tourism businesses (hotels and restaurants), and require reporting to the Legislative Revenue Office (LRO) with a 2033 review.

Discussion focused on who would administer resiliency grants (local governments would determine administration consistent with other tourism funding), potential grandfathering of existing local rates, and whether LRO or LPRO should receive and analyze spending reports. Several members requested comparisons of fiscal scenarios under each amendment; LRO said mock examples could be produced but cautioned they might be of limited utility because local jurisdictions differ widely in current TLT rates and structures.

Chair Nathanson did not entertain final motions and carried the work session to the committee's next meeting the following morning at 08:30 for additional review.