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County reviews transient lodging tax history as state law opens options to shift tourism funding
Summary
Deschutes County finance staff reviewed the history of the county’s transient lodging tax (TLT), current allocations (including Visit Central Oregon and Fair & Expo), and implications of House Bill 4148 (effective Jan. 1, 2027), which allows counties to change historic 70/30 splits toward a 50/50 tourism/general government allocation; commissioners asked legal clarifications and cautioned about impacts to destination stewardship.
Deschutes County finance staff presented an overview April 6 that traced local transient lodging tax (TLT) ballot measures from 1975 through 2013, explained how state law (the 2003 70/30 rule and later changes) shaped local allocations, and described the expected impacts of a recent legislative change (House Bill 4148) that becomes effective Jan. 1, 2027.
Chief financial officer Robert Tintel and budget and financial planning manager Cam Sparks told the board that the county’s current 8% outside‑city TLT rate stems from several voter measures and includes specific voter‑directed allocations — notably the 2013 measure that added 1% with 70% designated for tourism promotion (the Fair & Expo) and 30% available for other county services. The county’s contract with Visit Central Oregon (VCO), effective May 2014, historically set VCO funding at 20% of net revenues from the first 6% and 100% of the 1987 1% designated for tourism.
Staff outlined that House Bill 4148 permits certain counties to adopt a 50/50 split between tourism/tourism‑related facilities and general government purposes, and broadens allowable uses to include resiliency grants for small lodging and restaurant businesses. Commissioners asked county counsel to clarify whether prior voter intent can be overridden or must be honored because the county’s measures predated the 2003 grandfathering rules. Finance staff said the statute allows the change but urged legal advice to assess obligations tied to explicit ballot language.
Commissioners discussed tradeoffs. Several said sustaining destination stewardship and shoulder‑season promotion remains important because the local tourism economy is vulnerable to low‑snow winters and wildfire smoke. Others noted fiscal pressure on county services and said the new statutory flexibility may be useful if the board needs to repurpose funds for general government services.
Why it matters: The statutory change could reallocate millions in TLT revenues over time and affect Visit Central Oregon’s funding, the fairgrounds, debt service and county programs supported by TLT. The board’s decision on allocation will influence tourism promotion, capital projects and general county services.
What’s next: Staff recommended legal review of ballot language and fiscal scenarios; Visit Central Oregon leadership will present to the board later in April.
