[Salem, OR - June 16, 2025] – The Oregon Restaurant & Lodging Association (ORLA) is voicing strong opposition to House Bill 3962, citing a deeply flawed process, a lack of collaboration, and the bill’s potential to damage longstanding partnerships between the private sector and local governments.

House Bill 3962, a last-minute rewrite of House Bill 3556 through a legislative maneuver known as “gut and stuff,” was released with -14 amendments just prior to the hearing. The result was widespread confusion among stakeholders and an erosion of trust in the legislative process.

“Rushed legislation at the 11th hour may create temporary political wins,” said Jason Brandt, President & CEO of ORLA, “but they are often wrought with unintended consequences and long-term damage to Oregon’s economic engine.”

From the start of the 2025 session, the approach to Transient Lodging Tax (TLT) proposals has lacked transparency and genuine collaboration. While ORLA appreciates the effort by House Revenue Committee Chair Nathanson to convene meetings with stakeholders, the process remained reactive and exclusionary—forcing industry representatives to respond to proposals rather than co-develop them with local government partners based on agreed upon facts.

For decades, Oregon’s TLT framework has been shaped by a partnership between the lodging industry—the tax generator—and state and local governments—the tax spenders. This collaboration has resulted in high-impact outcomes for the state, including global successes like the 2022 World Athletics Championships in Eugene. HB 3962 threatens to dismantle this cooperative model by granting local governments unchecked authority to redirect TLT funds, undermining the very industry that fuels them.

“The lodging industry feels like it’s being thrown under the bus,” said Brandt. “House Bill 3962 sends a message that state government will side with local jurisdictions at the expense of the private sector that provides over 200,000 jobs in Oregon’s hospitality and tourism economy.”

ORLA warns that HB 3962 could create a ripple effect of inequity, reduce private sector investment, and open the door to inconsistent spending practices that lack accountability. Without reasonable guardrails, local governments may use lodging tax revenue for unrelated expenses, distancing the use of funds from their original purpose of supporting tourism and economic development.

ORLA urges legislators to hit pause on HB 3962 and recommit to a collaborative, transparent, and equitable process. Engaging industry stakeholders before legislative proposals are finalized is critical to finding compromise and building sustainable public-private partnerships.

“We must embrace the private sector as a partner, not an afterthought,” Brandt added. “Let’s work together to modernize Oregon’s approach to lodging taxes without sacrificing the trust and success that have defined our past.”
For more information on the efforts of the Oregon Restaurant & Lodging Association please visit OregonRLA.org.

ORLA continues to stand at the forefront of advocacy for Oregon’s hospitality sector. As legislative and regulatory proposals evolve, our commitment remains strong—to protect your businesses, preserve tourism funding, and fight against harmful tax increases. Here’s the latest:

More Pressure Needed to Defeat HB 3962
On June 12, the House Revenue Committee held a work session on HB 3962 and proposed new amendments. The latest version reallocates transient lodging tax (TLT) funds so that:

• 60% would be unrestricted for local government use
• 40% would be reserved for tourism promotion, marketing, and facilities

This shift undermines the original intent of TLT revenues—to promote tourism, drive visitor spending, and support economic development across Oregon. ORLA issued an Industry Alert urging members to contact legislators and oppose this destructive bill.

Your voice matters. Legislators need to hear from operators like you. Tell them to vote NO on HB 3962.

Victory: Local TLT Increase in Tillamook Defeated
A measure to raise Tillamook County’s TLT from 10% to 14% was narrowly defeated—by just 12 votes, as confirmed in the official recount. This outcome is a win for local businesses, short-term rental operators, and the broader tourism community.

ORLA supported opposition to this measure, and we commend the grassroots efforts of all who spoke out, organized, and voted. This is a prime example of how local engagement gets results.

Federal Advocacy: CCCA Swipe Fee Reform & Pro-Growth Tax Policy
On the federal front, ORLA is calling on Congress to act on two key priorities:

• Swipe Fee Reform: Credit card swipe fees have doubled over the past decade. The Credit Card Competition Act (CCCA) amendment to the GENIUS Act would introduce competition and lower these fees—a much-needed fix for operators dealing with tight margins.
• Pro-Growth Tax Policies: We’re also pushing for federal tax reforms that help restaurants and lodging businesses invest in jobs, team development, and future growth.

Take action today by contacting your U.S. Senators and Representatives.

Be Ready: Navigating Public Demonstrations Near Your Business
With large public events and demonstrations more common—especially in downtown or tourism-heavy areas—it’s essential to prepare for potential disruptions. ORLA has developed a practical guide to help you:

• Keep your team and guests safe
• Maintain operational continuity
• Coordinate with local authorities

We encourage all members to review these strategies and share them with your management teams.

Whether it's rallying your local network, submitting testimony, or simply staying informed, your participation strengthens our advocacy efforts. ORLA will continue to track these issues and provide the tools you need to make your voice heard.

For questions or to get more involved, please reach out to our Government Affairs team.