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Visit McMinnville outlines tourism metrics and proposes phased TLT split as new hotel rooms come online
Summary
Visit McMinnville reported modest growth in transient lodging tax receipts, strong social engagement and event expansion, and proposed a calendar‑year phased approach to implement HB 4148 (70/30 remainder of 2026, 60/40 in 2027, then 50/50 in 2028) to avoid sudden revenue disruption as new hotel inventory comes online. Council asked staff to return a resolution reflecting the phased change.
Dan Gibson, representing Visit McMinnville, presented the organization's annual report and a proposal for phasing changes to the Transient Lodging Tax (TLT) split following recently enacted HB 4148.
Gibson told council Visit McMinnville’s FY budget of roughly $1.28 million produced modest net gains in lodging‑tax receipts and that the organization exceeded budgeted transient lodging tax (TLT) income by about $5,284 year‑to‑date. He highlighted that Visit McMinnville spent about 60% of its budget inside the city and used investment income to generate additional funds. Gibson said Visit McMinnville’s marketing and events strategy produced measurable media value (the slide deck cited more than $14 million in media value) and audience growth on social platforms.
He reviewed shifting lodging market dynamics: statewide hotel occupancy showed small declines, but short‑term rental (STR) revenue had grown and STR listings increased in December, complicating rate calculations. Gibson cited AirDNA/STR data indicating as many as 100 additional short‑term rental listings came online in December, and noted the AC Marriott and other hotels will add roughly 118 rooms in 2027, which could redistribute occupancy and downward pressure on average daily rates if not managed.
To mitigate disruption from a sudden TLT split change, Visit McMinnville proposed staggering the new split over three calendar years: maintain the current 70/30 split for the remainder of calendar 2026, move to 60/40 in 2027 and then 50/50 in 2028 onward. Gibson said the phased approach would allow Visit McMinnville time to fill new hotel rooms and protect existing lodging tax revenue and local properties sensitive to rate declines. He estimated that the phased change could return an additional ~$70,587 to the city in a given year compared with an immediate 70/30 change; in a later year (projected 2027–28) the change could add roughly $300,000 in revenue to the city relative to a straight 70/30 split (figures were characterized by Gibson as projections).
Council members asked clarifying questions about STR measurement and the organization’s plans. Gibson described a new community calendar and website updates, event expansions and a group‑sales push tied to the forthcoming AC Marriott. Council indicated general comfort with the phased calendar‑year approach and asked staff to prepare a resolution for the next meeting.
Why it matters: HB 4148 changes TLT allocations between cities and destination marketing organizations (DMOs). How and when a jurisdiction implements the new split affects local budgets, Visit McMinnville’s programming, and city investments in tourism‑supporting infrastructure such as downtown bathrooms and parks maintenance.
Next steps: Staff will draft a resolution to implement the calendar‑year phased percentages and return it to council for consideration.
