HB 3556
Extends the permissible uses of net revenue from a new or increased local transient lodging tax to include public safety services and certain costs related to "community infrastructure."
Jurisdiction
Oregon
Session
2025 Regular Session
Committee
Emergency Management, General Government, and Veterans
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Sign in to take actionPublic sentiment
Support
35%
Oppose
65%
- Introduced
- Passed House
- Passed Senate
- To Governor
- Became Law
Bill overview
This bill allows cities and counties in Oregon to use revenue from their local transient lodging taxes (hotel taxes) for public safety services and certain costs related to "community infrastructure." Currently, these taxes were primarily used for tourism promotion. The bill also establishes rules around how these taxes are collected and managed, including a percentage dedicated to tourism promotion and a collection reimbursement charge for tax collectors. It clarifies definitions related to tourism, transient lodging, and community infrastructure.
Key provisions
- Allows use of transient lodging tax revenue for public safety services.
- Permits use of transient lodging tax revenue for ‘community infrastructure’ costs.
- Establishes a minimum of 70% of new or increased transient lodging tax revenue for tourism promotion or infrastructure.
- Limits use of transient lodging tax revenue for city or county services to 30%.
- Defines key terms related to transient lodging, tourism, and community infrastructure.
- Requires a collection reimbursement charge for transient lodging tax collectors.
- Specifies rules for calculating transient lodging tax on travel packages.
- Sets a timeline for the bill to take effect 91 days after the end of the legislative session.
Who is affected
- Cities and counties in Oregon
- Tourism industry
- Residents of Oregon
- Hotel and lodging providers
- Tax collectors
Notable changes
Sponsors
Official sponsors from legislative records.
Primary sponsors
Arguments in favor
Reasons to support this legislation.
Supporters of House Bill 3556 argue that it would provide flexibility in spending local lodging tax funds, allowing cities to allocate revenue towards non-tourism related services such as public safety and community infrastructure. This flexibility is seen as crucial for addressing the strain tourism puts on local services, particularly in high-tourism areas like Cannon Beach and Central Oregon. The bill's supporters believe it would enable local governments to make more informed decisions about how to allocate their tax revenue, prioritizing needs that benefit residents over those solely focused on promoting tourism. By providing more flexibility in spending TLT dollars, the bill aims to mitigate the financial burden of restricted uses on diverse-cost cities and support public safety services, infrastructure costs, and community development initiatives.
Source: Testimony Summaries
Arguments opposed
Reasons to oppose this legislation.
Opponents of House Bill 3556 argue that diverting Transient Lodging Tax (TLT) revenue from tourism promotion and facilities would harm local economies, businesses, and job security. They emphasize the importance of year-round employment and economic security in rural areas, citing tourism as a crucial driver of economic growth and prosperity. Many concerns that reducing tourism could lead to reduced visitor numbers, negatively impacting local businesses, creating jobs, and generating revenue for communities. Some argue that the bill would strip away key investments in economic sustainability and growth, limiting the use of local TLT revenue, which is essential for Southern Oregon's tourism sector.