[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.

Recent statements by State Representative Javadi wrongly suggest that the hospitality industry isn’t paying its fair share in taxes and that tourism is a burden on coastal communities. These claims ignore the significant economic contributions of tourism and misrepresent the facts. It’s time to set the record straight.

Tourism Pays Its Fair Share—And Then Some
Tourism-related businesses generate millions in local and state tax revenue annually through property taxes, business taxes, and the Transient Lodging Tax (TLT). These funds directly support infrastructure, emergency services, and community development.

The current 70:30 TLT allocation ensures tourism remains a strong economic driver, benefiting both visitors and residents. Many coastal communities already have flexibility in spending nearly half of their TLT revenue (52% unrestricted), including for public safety. Reducing tourism funding risks unintended consequences—fewer visitors, lower tax revenue, and diminished support for essential services.

The Real Issue Behind Housing Costs
Placing blame on short-term vacation rentals (STVRs) for high housing costs oversimplifies the issue. The real drivers are restrictive zoning laws, limited land availability, and high construction costs. Even eliminating STVRs wouldn’t create enough housing to meet demand or lower costs.

Instead of targeting STVRs, policymakers should focus on workforce housing incentives and streamlined development processes. Meanwhile, STVRs continue to generate tax revenue, support local jobs, and boost small businesses—contributions that shouldn’t be overlooked.

Tourism Is an Economic Engine, Not a Burden
Tourism fuels thousands of jobs and sustains local businesses. While some claim that cities have excess tourism promotion funds, the reality is that these funds help communities remain competitive. Those sitting on TLT dollars should implement strategic plans to drive tourism year-round, ensuring full-time employment and long-term economic benefits.

The idea that our state's natural beauty "markets itself" is misleading. Other destinations actively promote their attractions, and without continued investment in tourism marketing, we risk losing visitors—and revenue—to competing regions.

Public Safety and Infrastructure: Tourism Dollars at Work
Tourism does create demand for public safety services, but TLT revenue already supports these efforts. Law enforcement agencies benefit from these funds, and shifting money away from tourism promotion could ultimately shrink the economic base that funds public services. Sustainable budget management and alternative funding sources, like grants and public-private partnerships, should be explored instead.

A Smarter Path Forward
Tourism is not the problem—it’s a critical pillar of our coastal economy. Rather than jeopardizing a thriving industry, we should focus on strategic, long-term solutions for housing and infrastructure. With thoughtful planning, we can ensure tourism continues to benefit both residents and visitors alike. | Jason Brandt, President & CEO, Oregon Restaurant & Lodging Association

​The hospitality industry is navigating a tough landscape, with restaurant and lodging operators grappling with rising costs, workforce shortages, and evolving consumer expectations. To support businesses in overcoming these challenges, the Oregon Restaurant & Lodging Association (ORLA) is actively advocating for solutions that address key financial and operational pressures. From tackling labor costs and skyrocketing food prices to addressing credit card swipe fees, delivery app charges, and service-related policies, these initiatives are designed to ease burdens and strengthen the industry's future.

Here’s a closer look at the critical issues and the steps being taken to drive meaningful change.

1. LABOR COSTS
Challenge: Rising minimum wages and increased labor costs put financial pressure on restaurants and lodging businesses.

ORLA's Initiatives:

• Protecting statewide pre-emption on local minimum wage increases. Oregon has been surpassed by many local governments outside of our state on the west coast who continue to arbitrarily increase minimum wage rates. This is occurring elsewhere outside of Oregon because of the increasingly difficult lift of passing a statewide law governing local government labor regulations. ORLA played a key role in helping pass the statewide pre-emption in the 2016 Oregon Legislative Session, enacting 3 minimum wage rates based on county boundaries – all of which increase annually in alignment with Consumer Price Index (CPI) changes. This has allowed for a consistent statewide policy to simplify compliance and prevent a patchwork of local wage laws.
• Supporting workforce development programs that offer training and career advancement opportunities to improve retention. An intentional approach to ongoing professional development is a key strategy to improve workplace cultures and retain talented employees. 

2. FOOD PRICES
Challenge: Supply chain disruptions and inflation continue to drive up food costs, affecting restaurant margins.

ORLA's Initiatives:

• ORLA launched a new partnership with RestaurantOwner.com – an online subscription resource with a host of solution-oriented trainings and templates to assist owners and managers with the key task of fine tuning food purchasing decisions and more precise inventory management controls. 
• ORLA will work with state legislators on a review of the state’s cage-free egg mandate that passed in the 2019 legislative session and took effect on January 1, 2024. The cost of what should be the most affordable protein for Oregonian families has skyrocketed in large part due to Avian flu outbreaks facing egg producers. Still, prices have increased due to a smaller supply of eggs due to the government cage-free egg mandate. We are confident that increasing supply by opening up Oregon’s market to all eggs once again will help drive down costs for Oregon families and the state’s hospitality industry.
• ORLA’s member network of food distributors which includes McDonald Wholesale, US Foods, Sysco, and Harbor Foodservice among others commonly host training sessions to assist their customers with menu planning and food cost control services. These critical partners want their customers and our members to stay in business. Identifying sustainable solutions for food purchasing decisions is in both their best interest and in the best interest of Oregon’s restaurant industry.

3. HEALTH INSURANCE
Challenge: Rising healthcare costs make it challenging for restaurants and lodging businesses to provide benefits for employees.

ORLA's Initiatives:

• ORLA is exploring development of an association health plan. Our goal is to launch a new program in alignment with the 2025 health insurance renewal period so the plan can be in full swing for calendar year 2026. 
• ORLA Hospitality Partner, Garth T. Rouse & Associates, continues to work with members to identify health care solutions that make sense for every member’s unique situation including medical, dental, vision insurance, COBRA and self-insured plans, retirement plans, and supplemental plans to name a few. 

4. CREDIT CARD SWIPE FEES
Challenge: High transaction fees imposed by credit card companies reduce profit margins for restaurants.

ORLA's Initiative:

• Supporting federal and state-level legislation that seeks to reduce or cap credit card swipe fees. Our key focus this year is continuing to build momentum for the Credit Card Competition Act in Congress. Industry members are encouraged to join ORLA on trips to Washington D.C. to advocate for this important legislation.

 
5. CHILD CARE
Challenge: Lack of affordable and accessible child care options affects workforce availability and retention in the hospitality sector.

ORLA's Initiatives:

• Advocating for tax incentives and funding to support employer-sponsored child care solutions.
• Helping amplify the newly created “Oregon Employer Child Care Toolkit” and expanding resources being provided by Child Care Works for Oregon.  

6. DELIVERY APP FEES
Challenge: High commission rates from third-party delivery platforms significantly reduce restaurant profitability.

ORLA's Initiative:

• A proposal to increase delivery fees in Oregon is currently under discussion in the legislature as a way to increase transportation funding for the Oregon Department of Transportation. The new proposal seems focused on the growing fleet of delivery vehicles owned by Amazon and other delivery providers. ORLA will be working to ensure food delivery services are exempt from the new proposal if it were to move forward in the legislative process.

7. SERVICE CHARGES & TIPPING ISSUES
Challenge: The debate over service charges versus tipping continues to impact both customer perceptions and employee earnings.

ORLA's Initiatives:

• Educating restaurant owners on the legal and operational implications of service charges versus traditional tipping models.
• Advocating for policies that protect tip income while ensuring fair compensation for all staff.
• Providing best practice guidelines for transparent communication with customers regarding service charges and gratuities.
• Providing tip pooling templates restaurant and lodging owners can customize for their own business needs.

Through these initiatives, ORLA remains committed to supporting Oregon’s restaurant and lodging industry by advocating for fair policies, providing business resources, and working towards sustainable solutions to industry challenges. | Jason Brandt, President & CEO, Oregon Restaurant & Lodging Association

Surcharge on Spirits / Local Lodging Tax Increases / National Immigration / Secretary of Labor

Liquor Surcharge Extension Proposed: The Oregon Liquor & Cannabis Commission (OLCC) is considering extending the existing 50-cent surcharge on distilled spirits. The proposed action is a renewal of the "temporary" surcharge of fifty cents that was initiated in the 2009-2011 budget cycle. In June 2023, ORLA helped block an attempt to double the surcharge on distilled spirits, retaining the 50-cent surcharge extended through the 2023-2025 biennium. Submit your comments by March 10 to Laura Paul.

County Proposes 50% TLT Increase: The Tillamook County Commissioners are rushing to propose a 50% increase in the transient lodging tax (TLT) be added to the May ballot. The hike increases the TLT from 10% to 15% and could raise costs for your guests, deter bookings, and put the county at a competitive disadvantage compared to neighboring areas. Industry members in the county are encouraged to take action now by attending public hearings and contacting Tillamook County Commissioners to oppose this increase. Tillamook County will hold three public hearings: 2 on January 29, and the final session on February 12 at 10 am. Email Commissioners directly and share your concerns.

National Immigration Policy and Actions: Both the American Hotel & Lodging Association (AHLA) and the National Restaurant Association (NRA) are ramping up their communications in the early days of the new administration. It appears immigration and the prospect of a more aggressive deportation posture is front and center for these national partners and for us as we work to avoid disruptions to Oregon hospitality businesses.

AHLA is preparing comprehensive communications to be coordinated with Partner State Associations in affected states. In the long term, AHLA will continue to advocate for bipartisan progress on immigration reform. What we know is that the hotel industry could potentially be impacted in the following ways: raids at workplaces, ICE agents staying in hotels, and hotels being approached to contract as detention facilities.

The National Restaurant Association and the Restaurant Law Center are actively monitoring immigration policy developments to keep the industry informed and prepared. A webinar has been scheduled with a panel of experts from the law firm of Fisher Phillips:

Workplace Immigration Law in 2025: What Restaurants Should Expect
February 10, 2025, 11:00 am PST | Register here

Support of Chavez-DeRemer as U.S. Secretary of Labor: ORLA sent out a press release last week in support of former Congresswoman Lori Chavez-DeRemer. Congresswoman Chavez-DeRemer has a proven track record of supporting restaurant and foodservice operators and employees. Her voting record showcases her desire to protect the path to restaurant ownership for many prospective entrepreneurs. In addition, her support for Department of Labor apprenticeship programs has been noteworthy. The programs give employees opportunities to learn valuable skills as they pursue careers in the industry.

FOR IMMEDIATE RELEASE

MEDIA CONTACT: 
Greg Astley, Director of Government Affairs, ORLA
[email protected] | 503-851-1330

Oregon Restaurant & Lodging Association Strongly Encourages Congress to Approve Lori Chavez-DeRemer as U.S. Secretary of Labor

Wilsonville, OR – The Oregon Restaurant & Lodging Association (ORLA) is strongly supportive of the nomination of former Congresswoman Lori Chavez-DeRemer as U.S. Secretary of Labor and urges Congress to confirm her appointment.

“ORLA has had the opportunity to work with Congresswoman Chavez-DeRemer in the past on several issues both in her capacity in Congress and as a local elected official in Oregon and we strongly encourage Congress to confirm her appointment,” stated ORLA President & CEO Jason Brandt. “Her pragmatic, practical leadership style has been incredibly helpful to small businesses, especially restaurants, lodging properties and other hospitality and tourism-related owners and operators.”

Congresswoman Chavez-DeRemer has a proven track record of supporting restaurant and foodservice operators and employees. Her voting record showcases her desire to protect the path to restaurant ownership for many prospective entrepreneurs. In addition, her support for Department of Labor apprenticeship programs has been noteworthy. The programs give employees opportunities to learn valuable skills as they pursue careers in the industry.

“Her experience as a small business owner and her willingness to listen to all sides of an issue before developing solutions is exactly what we need in the U.S. Department of Labor right now,” continued Brandt.  “As hospitality businesses continue to try and make headway in the face of growing inflation, higher wages and benefits, and onerous government regulations, having a champion as Secretary of Labor who understands those challenges and will work to implement solutions is critical.”

Legislative Updates on the Federal Front

Federal Court Blocks New Reporting Requirements for Small Businesses
A federal court has temporarily halted the implementation of new reporting requirements under the Corporate Transparency Act (CTA) that were set to take effect on January 1, 2025. These requirements would have mandated small businesses, including restaurants with less than $5 million in annual revenue and fewer than 20 full-time employees, to report detailed ownership and business information to the U.S. Treasury Department.

This matters to restaurant and lodging operators because noncompliance penalties were looming, and the requirements would have added administrative burdens to already stretched small business owners. The delay provides breathing room to better understand and prepare for potential future regulations. It remains to be seen how new Treasury Department leadership in 2025 will handle the CTA and its reporting requirements so operators should stay informed on how these requirements evolve.

AHLA Urges Congress to Protect Consumers
The American Hotel & Lodging Association (AHLA) this week urged congressional leaders to move lodging fee transparency legislation – the House-passed No Hidden FEES Act or the Senate’s Hotel Fees Transparency Act – to President Biden’s desk. These bills would protect consumers by establishing a single and transparent nationwide standard for mandatory lodging fee displays. 

These legislative efforts are aimed at fostering transparency and consumer trust in the hospitality industry. By addressing hidden fees through proposed federal standards, operators can ensure a more straightforward booking process, enhancing guest satisfaction and loyalty. Furthermore, the emphasis on anti-human trafficking measures underscores the industry’s commitment to ethical practices, reinforcing the role of hotels as safe and responsible businesses. In case you weren't aware, ORLA partners with Businesses Ending Slavery and Trafficking (BEST) to provide FREE human trafficking training for association members and their staff. This comprehensive course about human trafficking is just 30-minutes, and it can help protect your hotel or restaurant – maybe even a life. Visit ORLA's website for more information.

Measuring Advocacy ROI | Elections & Measures | Oregon Champions Recognized

Update 10.31.24:

How the Election Could Impact Industry Priorities: The U.S. is in a record-breaking period of “change elections.”  In each of the last 5 national elections, there’s been a change in party control of the U.S. House of Representatives, U.S. Senate, or the White House. The National Restaurant Association policy team takes a look at the likely course of action for some of our industry’s priority issues under the array of possible election outcomes. Get the full assessment.

All Hands on Deck to Defeat the Costly Tax on Sales: ORLA worked with the No on Measure 118 campaign to create an infographic that illustrates the impact Measure 118 will have on restaurants specifically. To help spread the message, check out the growing collection of collateral available through the campaign’s Action Center.

Oregon Hospitality's ROI on ORLA Advocacy: In case you did not realize, ORLA is the only statewide association defending Oregon hospitality businesses from unwanted local meals taxes, local room tax increases and other government revenue attempts to unfairly target our industry. As a reminder of what ORLA has been able to achieve together on this front, take a look at the Advocacy ROI summary and see how this advocacy work could impact your bottom line.

Election Media Guide for Portland Businesses: With the upcoming election, Travel Portland continues to monitor election news and create strategies and messaging to respond when necessary and appropriate. Acknowledging how potential demonstrations may impact our community and businesses, Travel Portland worked with a Strategic Communications agency to craft a communications guide tailored for use by hoteliers and small businesses. This succinct media kit provides key information to address potential customer concerns during this election season. ORLA was asked to help share these resources in the hope you and your teams find value in the information.

Help shape the 2025 Federal Agenda: What are the trends and challenges that will define your business in 2025? Restaurant members are encouraged to complete the National Restaurant Association’s 2025 Business Conditions Survey. Your input will provide valuable data to help illustrate how current business conditions are impacting the industry. Learn more with the Association’s latest 90-Second Update.

Recognizing Industry Champions: Last month, five industry members and one allied member were honored in front of a three hundred of their peers at the ORLA Hospitality Industry Awards dinner. One of our honorees was Sandra Reyes, Guest Services Agent at the SaltLine Hotel in Seaside, recognized for her innate ability to make every person in the hotel feel welcome with the “Aloha Spirit.” Watch her story along with our other 2024 award recipients on ORLA's YouTube channel.

ERTC Refunds Back in Process: The long-delayed Employee Retention Tax Credits (ERTC) are being processed for eligible business owners who have been waiting on these refunds. The IRS says almost 400,000 claims worth $10 billion are being processed for eligible business owners who applied for tax refunds under the Covid-era program.

ORLA has initiated inquiries with the Coos County Health Department and the Oregon Health Authority regarding complaints from restaurants in the North Bend/Coos Bay area about food trucks not complying with current county and state health code regulations.

After hearing from restaurant operators on the southern coast about possible infractions by food cart operators, ORLA reached out to local elected officials, the Coos County Health Department and the Oregon Health Authority to find out more about enforcement of the health code.  Specifically, there were questions around the proper storage of frozen foods off-site.

According to Oregon law, a food truck must operate from a licensed kitchen or commissary unless the food truck is fully self-contained.

Mobile food units must operate from a base of operation or be fully self-contained. The regulatory authority will determine whether self-contained mobile food units can operate without a base of operation. To do so, the units must contain all the equipment and utensils that a commissary would provide. A mobile food unit may not serve as a commissary for another mobile food unit.

In addition, any storage must either be in the unit itself or at a licensed kitchen or commissary.

Auxiliary storage shall be limited to an amount that can be used in a day's operation and stored in such a manner as to prevent contamination or infestation (water-tight covered containers). At the end of the day, items must be placed in the unit or a licensed warehouse. No self-service, assembly or preparation activities may occur from the auxiliary storage container. Refrigerators and freezers may not be placed outside the unit and must be in the unit or in a licensed warehouse. Handling of unpackaged foods, dishwashing and ice making are prohibited in a warehouse.

Find the complete mobile food unit operation guide here.

ORLA will continue to work with local and state health officials to ensure compliance and enforcement of current laws and will lead the discussion around any new laws needing to be considered for the public’s safety and well-being.

If you have questions or concerns about issues impacting your operation and/or community, please reach out to Greg Astley, Director of Government Affairs.

National Hill Runners Help Amplify Oregon Hospitality Voices

Oregon’s hospitality industry is brimming with passionate, engaged professionals who understand the importance of cultivating a healthy industry to “lift all boats.” They value industry strength over individual success and know that by advocating together, they can have a stronger voice. 

We have a small but mighty contingent of ORLA members serving as “Hill Runners” serving at the federal level through a collaboration between the Oregon Restaurant & Lodging Association (ORLA) and the National Restaurant Association (NRA). Over 192 operators in 38 states serve as National Hill Runners, seven of which are from Oregon. This grassroots initiative provides an opportunity for operators to meet with members of Congress and develop one-on-one relationships for lawmakers to hear and understand the impact of legislation on the restaurant and lodging industry. 

Five of the seven Oregon’s National Hill Runners spent a few days in Washington, DC this past May along with ORLA’s government affairs team to meet with congressional members at the capitol. Their continued engagement is helping influence policy decisions and create a more favorable environment for our industry.

Our Hill Runners include:

• Emma Dye, Crisp 
• Justin Freeman, Bagel Sphere 
• Treva Gambs, Gamberetti’s and G3 Pizzas & Burgers
• Patrick Nofield, Escape Lodging 
• Jerry Scott, Elmer’s Restaurants, Inc.
• Barbara Sidway, Geiser Grand Hotel
• Jim Smith, Mountain Mike’s Pizza and Cascades Coffee House

We asked Oregon’s Hill Runners to share their motivations, goals and experiences; here’s what they had to say: 

What motivated you to volunteer as a National Hill Runner? 

Smith: The NRA Hill runner program presents an incredible opportunity to harness our industry expertise to educate and inspire policy makers! While many policymakers have enjoyed the guest experience across various dining venues, from quick-service gems to luxurious five-star establishments, they might not have glimpsed behind the scenes to see how the magic really happens. By cultivating constructive partnerships with policymakers, I'm confident we can drive substantial progress in advancing agenda items that benefit our teams, vendors, and the communities we proudly serve.

Sidway: I already had a relationship with our Congressman Cliff Bentz and both Senators for more than two decades, so it was easy for me to just place that ORLA cap on and speak truth to those powers. 

Nofield: I believe extending our advocacy on a national level supports our efforts locally and might provide credibility with our state legislators. More than ever, the pressure restaurant operators face to turn a profit is significant. From high cost of goods to labor burden and new government regulation and overreach, we need to do what we can individually and collectively to impact positive change in our industry.

Scott: The National Restaurant Association, through Mr. Astley (ORLA’s Director of Government Affairs), asked me to join. I was honored to be in the first group of National Hill Runners.

Dye: I always say that you can't complain about how things are if you're not involved in trying to make it better! 

Gambs: When I was approached to be a hill runner, I felt it was an honor and definitely something that I wanted to be involved in. I love being able to talk with local politicians and being involved in conversations that will make change to our cities and state. My motivation to be involved is to be in the loop when it comes to my restaurants and how they are regulated.  

Freeman: I've had the opportunity to meet members of our Oregon delegation in Washington DC over the years and have always found them to be engaging and kind. I wanted the opportunity to be able to connect with them on a personal level to share the impacts that policy decisions can have on daily life in the restaurant industry in Oregon.

What do you hope to get out of this experience? 

Smith: As I've gained more experience (or let's say, wisdom with age!), I've come to truly appreciate the significance of sharing my knowledge and guiding others on their journeys. It's about empowering those in positions of influence to understand the profound impact they can have on people's lives. This role not only enables me to cultivate a culture of continuous learning but also presents an exciting opportunity for me to glean insights and grow from the expertise of others. 

Sidway: Oh, it's gratifying when you can make a difference for good, generally, but especially for industry comrades. 

Nofield: Further understanding of the National Restaurants Association’s legislative agenda. Becoming better informed and on the forefront regarding national issues and seeking opportunities for a better business environment.

Scott: It is less a matter of what I get out of it and more of what are the possible impacts. I was already visiting the Oregon Congressional delegation in their DC offices, so it made a lot of sense to add the imprimatur of the NRA to the visits. NRA staff are immensely helpful at prepping Hill Runners for Congressional visits.

Dye: Knowledge of what our government is doing and relationships with folks who have the ability to help make changes for the better.  

Gambs: My hope is to build strong and healthy relationships to bring forward our issues, struggles and victories. I want others to know our voice matters and does make a difference. We can make change!

Freeman: I hope to represent our industry well and be a trusted resource for our elected representatives to turn to when they have questions or concerns about the impacts of policy or proposed legislation on restaurant owners, operators and workers.

What issues are you most passionate about? 

Smith: Years ago, I discovered a transformative leadership philosophy known as the service profit chain. At its core, it emphasizes the profound impact of nurturing our teams, who in turn deliver exceptional care to our guests, ultimately driving the financial success crucial for our organization's sustainability. Ensuring the well-being of my team has always been a personal commitment of mine. As a proud member of the ORLA board of directors, I am thrilled about the opportunity to collaborate with industry peers, learning firsthand about the challenges and successes of our teams. Together, we can focus on initiatives that strengthen our workforce and elevate the entire hospitality industry to new heights!

Sidway: Labor rules.

Nofield: How do we help operators that are suffering? How do we limit the burden of government regulation? Specifically supporting HR 7024 "Tax Relief For American Families And Workers Act of 2024."

Scott: That varies over the years. Currently, the issues of focus are addressing the immense costs of credit card fees and reigning in an overreaching NLRB.

Dye: Right now, specifically, credit card processing fees and the monopoly that exists there. In general, I care very much about fostering an environment that enables small businesses to thrive.  

Gambs: My passion is a fair playing field with big business. We both need each other but at times big business can run us down. An example is merchant credit card fees. With only two banks controlling this we have higher rates than other countries. Bringing more competition would drive rates down. We are all in business to make a profit but when the credit cards take a large chunk from us, we suffer. Balance is a key so that we can have a win-win for both sides.  

Freeman: I care about the long-term sustainability of the small, independent operator model. I'd like to continue to advocate for policies and legislation that ensure that these key elements of our local communities are able to compete, persist and thrive economically.

What was most rewarding from your recent visit to DC? 

Smith: I've been absolutely energized by the wealth of knowledge shared by my peers! Witnessing the incredible experience and expertise on display at the NRA Policy Affairs Conference, and then having the honor of walking alongside outstanding Oregon leaders through the halls of Congress, was truly humbling. Hearing our state representatives express their dedication to supporting our industry and ensuring our teams are well cared for was incredibly inspiring. It has ignited a renewed passion within me to strive for even greater impact! 

Scott: While Congressional visits are always worthwhile, I was particularly gratified to see the turnout from ORLA members. It is great that members see the value in engaging directly with their Senators and Representatives.

Dye: Other than the mayors of Portland, Happy Valley and Oregon City, I've actually never met with politicians before. It was so interesting, and I believe they truly heard us and our concerns. It was also awe inspiring to be in some of those historical buildings. Last but not least, it's always so rewarding to connect and bond with fellow restaurateurs, both from close to home as well as across the nation.

Gambs: My trip to Washington DC was amazing, being with restaurateurs from all the states. It was so much fun, educating and inspiring. But the most rewarding part was the one-on-one meetings with our members of congress and their staff. The young interns were truly a glimpse into the future of our politics. They were smart, informed and caring. Their questions and foresight encouraged me and made me feel that we were being heard. I left in awe and with more respect to how we are running the country. 

Freeman: Our elected representatives were all kind and engaged in conversations with our group. I particularly enjoyed meeting the staffers in each office and appreciated the time they spent with us and the interest they showed in learning about the issues that impact us daily as restaurant operators.

What motivates you to be actively engaged / advocating for the industry?

Nofield: That we can potentially impact change and help others by being engaged and having a seat at the table. 

Sidway: You become and stay well informed on emerging issues. For example, I learned about the cage-free eggs issue months before my foodservice provider. And then you can be a part of making a tangible difference. Honestly, I believe that the best lobbying is done by our members, in their facilities. The distractions of DC are absent, and the real nature of our service business is so palpable. 

A common theme we hear from members actively engaged in government affairs is that advocating isn't just about supporting your own business’ interests, it's about helping the entire industry thrive. We want to thank these industry champions for their willingness to intentionally engage in building relationships with their congressional members. Let your voice be heard!

Interested in getting more involved as a hospitality advocate at the state level? Contact us for details at [email protected]. | Lori Little

Connecting and Building a Stronger Industry Together!

The past few months have been a whirlwind of activity at ORLA! We've hosted Regional Meetings and events across the state, creating exciting opportunities for you to connect face-to-face with industry colleagues and leadership.

But our work goes beyond events. Your dedicated ORLA team tirelessly advocates for your business, fosters the next generation of hospitality professionals, and provides valuable resources to support your success.

Together, we're making a difference. We're protecting, improving, and promoting Oregon's vibrant hospitality industry.  Thank you for being a member and fueling our efforts!

Not a member yet? Join us and connect with your industry community. We're here for you!

What You Need to Know About the DOL Overtime Rule
The first increase in the DOL Overtime Final Rule is scheduled to take effect July 1 and increases the salary threshold to determine whether employees are exempt from overtime pay under the Fair Labor Standards Act (FLSA). 

• Provisions include:
  • Standard Salary Threshold Increase: Effective July 1, 2024, the standard salary threshold will increase to $844 per week ($43,888 annually). It will rise again on January 1, 2025, to $1,128 weekly ($58,656 annually).
  • Highly Compensated Employee (HCE) Threshold Increase: The salary threshold for HCEs will be $132,964 annually starting July 1, 2024, and will increase to $151,164 on January 1, 2025.
  • Automatic Updates: Starting July 1, 2027, the earnings thresholds will be automatically updated every three years based on wage data.
• What Operators Should Do Now:
  • Review Job Duties: Ensure employees are correctly classified as exempt or non-exempt based on their job duties. Refer to this DOL fact sheet for guidance on determining exempt status. (See also: Final Rule on Overtime Protections and Small Business Compliance Guide)
  • Review Payroll Records: Identify salaried exempt employees with wages below the new threshold. For these employees, you might consider 1) Raising their salary above the new limit or 2) Changing their status to non-exempt and properly tracking hours to pay overtime when appropriate.
  • Consult Counsel: Consult with an employment attorney licensed in your state to determine how best to comply with the Final Rule and all applicable state and local rules.

Take note, lawsuits including challenges by the Restaurant Law Center are seeking to invalidate and set aside the Final Rule, potentially impacting its implementation.

Resources for Hotels on DOL Overtime Rule:

• AHLA Webinar (recorded video)
• AHLA Webinar Presentation

Understanding Oregon Workforce Diversity
Oregon Hospitality Foundation (OHF) is conducting a survey to understand diversity perceptions within the state's hospitality industry. The initiative aims to improve company culture through workforce dynamics research (read blog). Participation in the ongoing survey is encouraged.

Oregon Hill Runners to Help Drive Policy
ORLA's Hill Runner project is officially underway to recruit and engage 180 ORLA members in building relationships with their respective State Representative or State Senator. ORLA has contracted with Ramsey Cox, an experienced media relations and public affairs consultant to assist us in securing hill runners this fall. Ramsey has worked with ORLA in the past on a few key priorities, such as fighting alcohol tax increases, repealing pandemic restrictions, and protecting energy choice.

Member Benefit: New Wage Reports Available
ORLA members have access to industry intelligence by logging in to the Member Portal. Find updated wage reports with regional breakdowns for Oregon’s 7 tourism regions, inclusive of most job types in restaurant and lodging operations. Once logged in, navigate to the Resource Library.

Two Salem H.S. Teams Place in Top 10 Nationally
Oregon’s top two ProStart teams in the state competed at the National ProStart Invitational end of April in Baltimore. The team from McNary High School placed sixth out of 48 teams in the culinary competition and Salem’s CTEC team (pictured) placed eighth out of 48 teams competing in the restaurant management competition. These teams earned the trip to Nationals by taking top honors at the Oregon Hospitality Foundation’s annual Oregon ProStart Championships in March.

Upcoming Events & Meetings:

• 6/26/24 – ORLA Virtual Meeting for Members
• 7/22/24 – ORLA Open Golf Tournament
• 9/22/24-9/23/24 – ORLA Hospitality Conference 

Looking to get more involved in ORLA activities? Check out our website for details.

FOR IMMEDIATE RELEASE
Media Contact: Jason Brandt, President & CEO, ORLA, 503.302.5060

Remaining funds present unique opportunities to invest in tourism initiatives

Wilsonville, OR – Salem’s Budget Committee approved a stop-gap solution to fund the library through a Cultural and Tourism Fund, finding access to American Rescue Plan Act (ARPA) dollars outside of any restricted lodging tax revenues. The Oregon Restaurant & Lodging Association (ORLA) confirmed with the City Attorney the ARPA funds will be used as a one-time resource to backfill their library shortfall, a legal move within the rules for those federal dollars.
Coming out of the pandemic, Oregon received $4.262 billion in ARPA funding, with approximately $2.76 billion going to the state and $1.5 billion distributed to Oregon cities and counties. After Salem uses $1.2 million of their ARPA funds to preserve staff and services for the library for a year, it’s anticipated there will still be close to $2 million remaining in the Cultural and Tourism Fund. 

“Having such a robust beginning balance in this fund is a great opportunity for us to assist Salem’s hospitality industry in their ongoing recovery efforts post pandemic while potentially driving new lodging tax revenue for the City in support of future fiscal years,” said Jason Brandt, President & CEO of the Oregon Restaurant & Lodging Association. “This is a strategic moment for the region and city collaborations with Travel Salem, the Salem Area Lodging Association, and the Salem Area Chamber of Commerce should be put in motion to invest in creative tourism programs or initiatives local stakeholders feel can drive new tourism traffic.”

ORLA continues to support and protect tourism funding across the state, ensuring appropriate, strategic investments are made to drive tourism year-round and help build stronger economies. When tourism investments are driven through collaborative efforts involving all stakeholders, everyone benefits. New tourists result in more dollars through visitor spending and lodging taxes, bringing more revenue to local economies. 

For more information on the importance of protecting transient lodging tax revenues, visit the Oregon Restaurant & Lodging Association’s website at OregonRLA.org/tlt. Read more on ORLA’s public policy proposals for how ARPA funds could best be leveraged for Oregon’s tourism and hospitality industries.

About
The Oregon Restaurant & Lodging Association is the leading business association for the foodservice and lodging industry in Oregon, which is comprised of over 10,220 foodservice locations and 2,000 lodging establishments. As of December 2023, the Oregon Employment Department reports the Leisure and Hospitality workforce totals 208,700 with a total economic impact of over $13.8 billion in annual sales for Oregon.

FOR IMMEDIATE RELEASE: April 17, 2024
Media Contact: Jason Brandt, President & CEO, ORLA, 503.302.5060

Mayor proposes dipping into transient lodging tax dollars to fund city’s library

Wilsonville, OR– The Oregon Restaurant & Lodging Association (ORLA) is proactively looking into a proposal by Salem Mayor Chris Hoy to use transient lodging taxes to fund around $1.2 million in the library’s budget. Under his proposal, the city would access lodging tax dollars from Salem’s Cultural and Tourism Fund to cover the shortfall in library operations.

“Each jurisdiction with a transient lodging tax has both restricted and unrestricted parameters for how our industry tax money can be spent,” said Jason Brandt, President & CEO for the Oregon Restaurant & Lodging Association. “The question here is whether the City of Salem has $1.2 million in unrestricted funds from the transient lodging tax to spend however they deem appropriate. If the City uses the portion of industry taxes restricted by state law for tourism, then ORLA will need to take appropriate action against this proposal.”

Reforms passed in the 2003 Oregon Legislative Session established rules for how local governments can spend industry tax dollars. In short, spending on tourism promotion and tourism-related facilities (defined in state statute) was locked in as a percentage of total lodging tax collections on July 1, 2003. And on July 2, 2003, moving forward, any increase in a local lodging tax rate or establishment of a new lodging tax not already in existence must allocate 70 percent of revenues to tourism promotion and tourism-related facilities with the remaining 30 percent serving as unrestricted revenue for the local government to spend however they see fit.

Diverting lodging taxes in support of other local government priorities essentially shortchanges the Oregon hospitality industry’s ability to bring visitor dollars to restaurant, lodging, and retail businesses year-round. Protection of industry tax dollars is a priority for ORLA as we remain focused on embracing shoulder and off-season promotions to entice visitors to local communities across Oregon year-round.

ORLA serves as the industry’s watchdog on lodging tax spending by local governments across Oregon. We produced a helpful video that our industry members and local government stakeholders can review that explains how local lodging taxes must be expended in accordance with Oregon's state law. 

View the Oregon Lodging Tax Defined video and visit the Oregon Restaurant & Lodging Association’s website at OregonRLA.org for more information.

About 
The Oregon Restaurant & Lodging Association is the leading business association for the foodservice and lodging industry in Oregon, which is comprised of over 10,220 foodservice locations and 2,000 lodging establishments. As of December 2023, the Oregon Employment Department reports the Leisure and Hospitality workforce totals 208,700 with a total economic impact of over $13.8 billion in annual sales for Oregon.

​Workforce Development
Coming off the heels of another successful Oregon ProStart Championships, we continue to look for ways to amplify some of the work our industry members engaged in the background to help educate our prospective workforce about the opportunities in this industry. You'll find an article in Here is Oregon that hears from both a mentor and volunteer judge on how rewarding it is for them to participate in our Oregon ProStart Championships event every year. You can also read our latest Workforce Blog about how our Oregon Hospitality Foundation team is pitching the "fun and great experience" our industry offers to our future workforce prospects.

Industry Stakeholder Survey
We're calling on all restaurant and lodging operators along the Oregon coast to take an important survey and provide feedback. To further the work our Oregon Hospitality Foundation's Hospitality Sector Strategist is doing, we need you to share your experience and insights to help us understand the workforce challenges and successes within our industry. To learn more about this project or if you have additional insights to share, email Rebecca Donley. Take survey here. 

Unfortunate Tragedy, Continued Safety Concerns
Oregon's hospitality industry lost a team member last week who was murdered in an unprovoked attack on TriMet in Portland. ORLA has been devoted to this issue given the importance of safety and security on our transportation systems and expressed concerns directly to the Governor's office. We also have invited TriMet executives to hear directly from restaurant operators and hotel GMs about the safety concerns of our industry workers who rely on the train for transportation. In the meantime, if you’re in a position to help a family in need, a Go Fund Me Page for Mike Brady’s family has been established as a result of the tragedy.

Tourism Academy Launches Year 5
Starting this week, our fifth Oregon Tourism Leadership Academy class launched their 2024 experience in southern Oregon. This program continues to be a key component for ORLA to establish a stronger leadership presence amongst tourism and hospitality stakeholders from around Oregon who gather four times during the year for multi-day professional development programming. ORLA is cultivating many friends through this program, each of whom can help us reinforce the value of being involved with ORLA while also answering the call of leadership to defend the appropriate use of industry taxes at local and regional levels. Learn more about OTLA. 

Regional Meetings This Spring
ORLA is hosting eight regional meetings across the state this spring. The emerging narrative in our first two regional meetings from ORLA members has focused on eroding profit margins due to swelling cost centers – whether they be rent, utilities, insurance, prime costs, etc. The pressures on the bottom line for both hotels and restaurants is palpable and ORLA continues to have concerns about the ability of our members to sustain their operations in the face of these headwinds. If you haven't yet, RSVP to an upcoming Regional Meeting and join us in the conversation.

Don't Miss the Northwest Food Show!
Be a part of the largest B2B food show in the Northwest! ORLA's Northwest Food Show presented by Curtis will be held at the Portland Expo Center Sunday and Monday, April 21 and 22. This show boasts hundreds of exhibit booths with everything from food and beverage to equipment to marketing and technology vendors. Register online prior to the show for quick and easy entry (ORLA members can register free with code "ORLA"). Registration at the door is also available. Visit NWFoodshow.com.

FOR IMMEDIATE RELEASE: February 27, 2024

Contact:
Greg Astley, Director of Government Affairs, ORLA | 971.224.1502 

(Portland, OR) – The Oregon Restaurant & Lodging Association (ORLA) is demanding the City of Portland review its subjective, unfair “smell” code immediately and cease targeting small restaurants and their owners, many of whom are people from various racial and ethnic backgrounds.

“It’s come to our attention the City of Portland is issuing citations to certain restaurants for ‘smells’ based on anonymous complaints,” said ORLA President & CEO Jason Brandt. “For other code violations, such as noise, vibration and even glare, there are measurable, objective standards but surprisingly, the City’s code written for ‘odor’ violations is entirely subjective.”

According to the zoning code (33.262.070), “The odor threshold is the point at which an odor may just be detected” by an inspector’s nose. No equipment of any kind is required.

A recent complaint by an anonymous neighbor has resulted in at least one Portland restaurant closing its doors. As reported by Willamette Week, Pho Gabo Vietnam Kitchen recently had to shut down operations because one neighbor has repeatedly complained they “can’t stand the smell of the grill and the meat.”

“It’s unbelievable that an anonymous person’s repeated complaints about an odor can shut down an entire restaurant, potentially displacing its workers and causing the operator irreparable financial harm,” continued Brandt. “There are a number of factors that contribute to Portland’s air quality (and livability) but forcing restaurants out of business does not seem like the most constructive way to address the problem.”

Suggested solutions from the City of Portland, including installing scrubbers to prevent the odors from traveling outside the restaurant are extremely expensive and at best, would only mitigate the smells, not eliminate them.

ORLA is calling for the City of Portland to immediately cease these unfair and subjective citations and review its policies on code violations.

For more information on ORLA’s advocacy efforts in Portland, read the Advocacy Blog at OregonRLA.org/portlandblog.

About ORLA
​
The Oregon Restaurant & Lodging Association is the leading business association for the foodservice and lodging industry in Oregon, which is comprised of over 10,220 foodservice locations and 2,000 lodging establishments. As of December 2023, the Oregon Employment Department reports the Leisure and Hospitality workforce totals 208,700 with a total economic impact of over $13.8 billion in annual sales for Oregon.

Meals Tax Goes Down at Council, Will Likely Move to Ballot

Last night the Grants Pass City Council voted 5-3 in opposition of adopting the ordinance at Council level for a food and beverage tax, flipping their previous vote earlier this month. Restaurant operators showed up in droves with signs and buttons as well as to testify alongside ORLA and its members, clearly demonstrating how our industry is well organized and willing to do what it takes to protect our businesses. Despite the Council voting against enacting the tax, they may decide to place it on the ballot in November for voters to decide.

Council Considered General Sales Tax, Utility Fee, and Meals Tax
The City of Grants Pass is looking for funding sources to increase service levels of public safety. A general sales tax, a prepared meals tax on restaurants, and a utility fee were all being considered. And on February 7, City Council voted 5-3 to pursue a 3% meals tax in addition to a utility fee. 

Grants Pass’ city charter allows Council to legally pass this tax without the vote of the people, though it is very uncommon for new taxes to be passed without a ballot vote. Based on draft language for the new food and beverage tax ordinance, increases in the 3% tax would be allowed at any time and to any amount without the vote of the people.

We strongly feel the Council’s decision to place the burden of paying for services everyone will benefit from on a single industry segment is inequitable and dangerous.

Brief History:

• For the past 24 years voters have approved the public safety levy for the City when it has been on the ballot.
• In 2021, City Council increased the local lodging tax; 30% of those revenues are unrestricted and help boost the budget for public safety.
• Previous attempts of passing a meals tax or sales tax have failed miserably when referred to voters, with margins of defeat ranging from 75%-80%.
• July 17, 2023 - Council began reviewing funding options for public safety; funding mechanisms like the food tax and sales tax appeared to be the only options discussed if the levy failed on the November ballot.
• November 7, 2023 - Voters approved the property tax levy to support public safety funding. The explanatory statement in the voter’s pamphlet promised that passing the levy would “Maintain current police and fire services.”
• December 18, 2023 - Despite the levy passing, a City Council workshop reviewed and agreed to support a 5-year plan to increase the number of “public safety” positions by 29 over the next 5 years. It appeared as though a prepared food and beverage tax on restaurants paired with a utility fee would be the leading option, but they did not have financial projections for the cost of the plan or proposed revenue these methods would generate. 
• ORLA, our members, and the community rallied to send letters, emails and engage Council to not proceed with a meals tax and to send solutions to voters for approval. 
• January 8, 2024 – During the City Council workshop, and after discussion on input from the community, they moved away from the meals tax as the leading option, however, agreed to proceed with a sales tax paired with a utility fee. Despite being asked to send this to voters, Council appeared ready to pass this at the Council level without going to the vote of the people. 
• February 21, 2024 – City Council voted 5-3 in opposition of adopting the ordinance at Council level for a food and beverage tax. Council has until August 7 to prepare the ordinance for the ballot.

ORLA has outlined several reasons why voters should be allowed to weigh in on a sales tax on meals:

1. A Sales Tax On Meals Takes Money From Hard Working Restaurant Workers – Restaurant workers compete for tip income when taxes appear on receipts. It is immoral to take household income from frontline workers trying to put food on the table for their families. 
2. Restaurants Make On Average 3-5% On Sales – A 5% sales tax on meals would result in the City of Grants Pass making as much money or even more money than the businesses themselves. 
3. Administrative Fees Kept By Restaurants Would Not Cover Increased Administrative Costs – A new sales tax on meals in Grants Pass would result in overhauls of payment processing systems as well as ongoing administrative duties. A local restaurant location could expect to pay over $10,000 to upgrade their system and manage recurring tax collection responsibilities. These are costs and managerial duties which will directly result in more damage to an already suffering industry.
4. There Is A Full-Blown Worker Crisis Crippling Local Restaurants – Grants Pass’ food industry is still suffering from reduced hours of operation for a number of local restaurants due to a workforce shortage. The problem is expected to grow which will most likely impact the consistency and reliability of any new sales tax on meals collected by restaurants.
5. Any Time Taxes are Increased, There is a Corresponding Decrease in Sales – Increasing taxes drives away sales, which not only reduces collections of the sales tax, but ultimately property and income taxes as well. 
6. Unlike Other Solutions, a Meals Tax is a Financially Fragile Fix – Restaurant sales tend to plummet during economic downturns, thus becoming an unreliable funding source for the city.

At the very least, the people of Grants Pass deserve to vote up or down on this sales tax on meals. An even better solution for the City would be to consider an Economic Improvement District or similar mechanism where the burden of raising revenue falls more broadly than on just the struggling local restaurants.

If you have any questions or want to get engaged in this issue, reach out to ORLA Regional Representative, Terry Hopkins.

FOR IMMEDIATE RELEASE: 
Contact: Jason Brandt, President & CEO, ORLA
503.302.5060 | [email protected]

Reforms enacted over 20 years ago require ongoing collaboration with local governments across Oregon

Wilsonville, OR– The Oregon Restaurant & Lodging Association (ORLA) and the Asian American Hotel Owners Association (AAHOA) are collaborating to keep a watchful eye on lodging tax spending by local governments across Oregon.

Currently, there are over 100 different local lodging taxes in jurisdictions across the state which generate over $220 million in revenue for city and county governments of all shapes and sizes.

“The task of staying on top of local lodging tax spending across Oregon is one of our most crucial roles,” said Jason Brandt, President & CEO for the Oregon Restaurant & Lodging Association. “Our friends and joint members at AAHOA are an important national ally. Oregon Asian Americans own 60% of all hotels in the state and as such, AAHOA serves as a critical partner in navigating the various formulas for our industry taxes while monitoring the way in which those dollars are spent in local economies.”
 
Reforms passed in the 2003 Oregon Legislative Session established rules for how local governments can spend industry tax dollars. In short, spending on tourism promotion and tourism-related facilities (defined in state statute) was locked in as a percentage of total lodging tax collections on July 1, 2003. And on July 2, 2003, moving forward, any increase in a local lodging tax rate or establishment of a new lodging tax not already in existence must allocate 70 percent of revenues to tourism promotion and tourism-related facilities with the remaining 30 percent serving as unrestricted revenue for the local government to spend however they see fit.

"It is crucial that local municipalities adhere to state laws mandating the appropriate allocation of local tourism tax revenue," said Taran Patel, AAHOA's Northwest Regional Director. "In light of our members' ongoing recovery from the profound effects of the pandemic, there has never been a more pressing imperative for cities to strategically reinvest tourism tax dollars, leveraging them to actively and effectively promote increased tourism."

A continual commitment to relationship building with local governments remains a key objective given reforms have now been in place for over 20 years. During that span, cities and counties see ongoing changes in administrator positions and elected official office holders.

“The work we do at ORLA and AAHOA in monitoring lodging taxes starts with city staff and elected leader conversations,” said Brandt. “New administrators often come from other states with little to no familiarity about Oregon’s rules relating to lodging tax. The same is true for volunteer elected officials who cannot be expected to be experts on industry specific issues like lodging taxes at the onset of their service. We’re here to partner whenever possible and determine ways we can grow the pie of revenue overall which benefits both the industry through direct investments in tourism needs while also benefitting the applicable local government by generating more unrestricted tax revenue for city/county budget needs.”

For more information on how local lodging taxes must be expended in accordance with Oregon's state law, watch the Oregon Lodging Tax Defined video or visit the Oregon Restaurant & Lodging Association’s website at OregonRLA.org. 

About ORLA

The Oregon Restaurant & Lodging Association (ORLA) is the leading business association for the foodservice and lodging industry in Oregon, which is comprised of over 10,220 foodservice locations and 2,000 lodging establishments. As of December 2023, the Oregon Employment Department reports the Leisure and Hospitality workforce totals 208,700 with a total economic impact of over $13.8 billion in annual sales for Oregon.

About AAHOA
AAHOA is the largest hotel owners association in the world, with Member-owned properties representing a significant part of the U.S. economy. AAHOA's 20,000 members own 60% of the hotels in the United States and are responsible for 1.7% of the nation’s GDP. More than one million employees work at AAHOA Member-owned hotels, earning $47 billion annually, and member-owned hotels support 4.2 million U.S. jobs across all sectors of the hospitality industry. AAHOA's mission is to advance and protect the business interests of hotel owners through advocacy, industry leadership, professional development, member benefits, and community engagement.

Tell Congress to Pass New Tax Legislation Benefiting Hospitality Businesses 
New legislation would restore expired tax deductions for many operators who are investing in their businesses. This legislation would extend 100% bonus depreciation for qualifying property, increase the maximum depreciation expense amount, and extend the inclusion of depreciation and amortization in business interest expense calculations. By restoring business interest expensing, this bill would help many restaurant and lodging operators lower their tax burden when investing in building upgrades, remodels, expansions, and refurbishments. 

Members of Congress need to hear directly from operators like you, so please take two minutes to add your voice. Take action today to ensure Congress acts quickly to pass this bill:

• Restaurants Act
• Hotels Act

Hotels Will Pay Historic Wages, Generate Record Level of Tax Revenue in 2024
Despite labor shortages and persistent inflation, hotels are projected to pay a record amount of wages and generate a record level of tax revenue in 2024, according to the American Hotel & Lodging Association’s 2024 State of the Hotel Industry report. 

Top findings include:

• Hotels are projected to pay employees a record of more than $123 billion in wages, salaries, and other compensation in 2024, up from $118 billion in 2023 and $102 billion in 2019.
• Hotels are projected to generate a record of nearly $54.4 billion in state and local tax revenue in 2024, up from nearly $52.4 billion in 2023 and $43.4 billion in 2019.
• The 2024 projection includes more than $26 billion in lodging-specific taxes.
• Hotels are projected to employ nearly 45,000 more employees this year, while still employing nearly 225,000 fewer people than the nearly 2.37 million employed in 2019.
• Hotels will leverage cloud technology and AI to increase operations efficiency and enhance guest experiences.

Questions? Contact Pete Kasperowicz, American Hotel & Lodging Association, with any questions at (202) 289-3155.

OHA Buried Report Citing Taxes Don't Curb Excessive Alcohol Use
The Oregon Health Authority (OHA) commissioned EcoNorthwest to produce a report on the cause and effect of increasing alcohol taxes in an attempt to curb heavy drinking amongst the Oregon populous. The study, which should have been published in 2021, concluded alcohol taxes do not change consumer habits or significantly reduce abuse.

The Oregon Beverage Alliance is voicing their concern and that this publicly funded report was intentionally withheld by the Oregon Health Authority, as uncovered by the Oregonian. While Oregon’s breweries, wineries and cideries continue to face major challenges with record closures rates and reduced volume sales, the Oregon Beverage Alliance says "the last thing any local business needs are tax increases.”

Introducing Tip Tax Credit by ORLA Hospitality Partner, Adesso
Did you know your employees’ tips can get you money back from the IRS? With Tip Tax Credit by Adesso, employers can get tax credits for tips your employees earn. The FICA Tip Credit is a federal tax credit available to employers who have employees who receive tips as a significant part of their income. FICA stands for the Federal Insurance Contributions Act, which includes Social Security and Medicare taxes. The credit allows employers to claim a portion of the FICA taxes paid on employees' tips as a credit against their own tax liability.

If your business is tip-driven, tips are reported by your employees, and FICA taxes have been paid on those reported tips, your business may qualify.

To learn more, visit our Adesso partner page to get started with Tip Tax Credit.

FOR IMMEDIATE RELEASE

CONTACT:
Jason Brandt, Oregon Restaurant & Lodging Association      
503.302.5060 | [email protected]

ORLA Files Suit Against City of Albany for Tax Expenditures
The motion filed in Linn County District Court alleges misuse of lodging taxes based on state law requirements

Wilsonville, OR– The Oregon Restaurant & Lodging Association (ORLA) filed a lawsuit this week against the City of Albany in Linn County Circuit Court.

ORLA contends the City has not reinvested lodging tax dollars originally used to pay off remaining debt for the Linn County Fair & Expo Center back into tourism promotions and/or other tourism-related facilities as required by state law.

“ORLA, on behalf of our local lodging and restaurant operators, has done everything we can to find agreement with City administrators for over a year in hopes of avoiding legal action,” said Jason Brandt, President & CEO for the Oregon Restaurant & Lodging Association. “Unfortunately, City administrators appear to be undeterred and unwilling to concede dollars previously used to pay off debt for the Linn County Fair & Expo center must be reinvested in tourism promotions and/or tourism-related facilities as required by state law.”

Oregon Revised Statute (ORS) 320.350 prohibits local governments from decreasing the percentage of Transient Lodging Tax (TLT) revenues spent to fund tourism promotion and tourism-related facilities once tourism-related facility debt is paid off.

“The City has had two choices available to them since retiring debt associated with the Linn County Fair & Expo Center,” said Brandt. “They could have reinvested those dollars in other tourism-related facility projects or tourism promotional campaigns bringing benefits to both residents and visitors, or they could have chosen to reduce the industry tax rate after paying off the debt. Unfortunately, these options have not been embraced and our industry seeks to hold the City of Albany accountable for its failure to comply with state law.”

The hospitality industry remains focused on embracing shoulder and off-season promotions to entice visitors to local communities across Oregon year-round.

“We know the diversion of lodging taxes in support of other local government priorities shortchanges our ability to bring visitor dollars to our restaurant, lodging, and retail businesses year-round,” said Brandt. “Our promotional campaigns at strategic times of the year to targeted tourism markets can bring significant revenue to our local economies and sustain year-round employment for our hard-working teammates in the industry.”

The lawsuit filed with Linn County Circuit Court can be viewed through the following link:
Complaint: ORLA v. City of Albany

Learn more about how Oregon lodging tax is defined in this video. For more information on the efforts of the Oregon Restaurant & Lodging Association please visit OregonRLA.org. 

Small businesses across the country need thriving associations with competent professional staff who serve as intelligence officers for their respective industries. When the Oregon Restaurant & Lodging Association (ORLA) first came into existence back in 1932 (the two associations merged in 2010), it was clear a unified voice was needed to represent the needs of hospitality businesses across the state. Far too often, elected officials who in many cases serve in a volunteer civic capacity, have little time to become experts on all policy decisions crossing their desk. Imagine a world where elected officials had no organized industry voice to turn to while making policy decisions for their constituents. That world would be rife with unintended consequences and short-sighted decision making.

Although our mission has evolved subtly over time, ORLA remains focused on improving, protecting, and promoting over 10,000 foodservice and 2,500 lodging locations across Oregon. These operations remain in business even after Covid unleashed its ferocious blow on an industry reliant on in person experiences. When considering both openings and closures, we estimate Oregon lost a net of 750 restaurants because of the pandemic, a number much smaller than originally anticipated but still devastating to economic ecosystems across the state.

Of all our existing locations, ORLA currently has a little over 3,000 who have chosen voluntarily to join their statewide association in support of our mission. It is clear the secret is out on Oregon as our population continues to grow with its geographic position between California and Washington. The state benefits greatly from its high qualify of life and diverse topography. You would be hard pressed to find a state with mountain ranges, a world-famous coastline, high deserts, and vast river and lake systems highlighted by the Columbia Gorge. As the state’s population grows so do the opportunities for additional foodservice and lodging pursuits. We are fortunate to have a state association which continues to slowly grow in its size and scope with 16 full time professional staff dedicated to the work.

The hospitality industry here in Oregon is at a crossroads with a growing market of independent small operators determined to provide choice to their guests. The explosion of choice feels like the options we now have when turning on a television. Instead of a handful of channels, we have immediate access to hundreds in addition to what seems like a limitless supply of streaming content. The same dynamics are at play in the hospitality industry. On one hand, lodging brands have greatly expanded to provide more choice for the traveler. On the restaurant side, we continue to see innovative business models emerge including app-based ordering, ping pong bars, and a proliferation of food pods and mobile units. The world looks different when compared to the norm of decades past when the traditional family restaurant dinner was served by the restaurant owners and their staff. 

Online travel agencies (think Expedia and Booking.com) as well as third-party delivery services (like DoorDash and Uber Eats) are creating a highly advanced and complicated environment. Restaurant and lodging establishments have innumerable opportunities to partner with vendors and suppliers in their ultimate goal to make money and provide jobs to others. If an operator is too flippant and not committed to detail, it would be easy to launch a hospitality business without a means for sustaining it. Commission rates for Online Travel Agencies can be considerable for lodging operators and restaurants continue to reel from increasing labor and food costs on top of their own commission payments to third party delivery companies. Too few Americans realize that 95 cents of every dollar they spend in a restaurant goes back into the food, the people, and the place. When you look at the hospitality industry through that lens, one could argue it is one of the more altruistic pursuits an entrepreneur can undertake. Most industries would balk and run the other direction if presented with an average margin of 5% for all their hard work.

The challenges facing operators are real and its our job at ORLA to bring industry transparency to our many elected official relationships. We rely on engaged members to work with our staff to build meaningful, authentic connections with the individuals we elect to office. Without this interplay, there is no connective tissue between the operator struggling to hold onto their limited margin, and the politician looking to raise a new batch of money for their next passion project. Our primary focus at ORLA is building strong working relationships with decision makers in government. By bringing authenticity to the table we are able to lead initiatives to assist our industry in their recovery whether that includes launching legislation allowing a new element to restaurant business models like to-go cocktails, or navigating the legislative system to enact transformative unemployment insurance tax reform for employers. If industry operators need someone to have their back, its our job to be there.

Our expectations for the future center on continued growth and diversification. The Oregon Employment Department projects our industry to be the fastest growing sector through the year 2030. Business models continue to change as operators re-evaluate the labor costs they can afford. With generational change comes the emergence of new trends including the new norm where a customer may not have a server but can still leave a restaurant feeling fulfilled by the high-end food quality and overall experience. Lodging operations are also reinventing themselves with more customized attention to the facilitation of experiences as opposed to the transaction of connecting a guest with a room. We are also starting to see generational change relating to housekeeping services in the wake of climate change with many brands reevaluating protocols for housekeeping services based on the changing perspectives of guests.

Suffice to say a complicated world and a growing array of hospitality options has created an environment whereby the association may now be more relevant than it ever has been. It is our job at ORLA to keep our ear to the ground and stay on top of industry trends and intelligence. It is common for us to share knowledge directly impacting the way an operator makes decisions for their business. It is a true honor to be able to make a real difference in the lives of others. In the association world we have a responsibility to embrace the independence and choice being offered by our members while empowering them to take full advantage of the tools and resources made available to them through their industry associations.

Jason Brandt is the President & CEO of the Oregon Restaurant & Lodging Association. Brandt has served in the role since August 2015 and came to ORLA after serving as the CEO for the Salem Area Chamber of Commerce. Brandt was recently recognized as a recipient of a 40 Under 40 award by the Portland Business Journal for his work representing the hospitality industry during the Coronavirus pandemic.

This editorial was published in Business View Magazine August ​2023 (Volume 10, Issue 8)