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Salem City Council Eyes Lodging Tax for Library Shortfall

4/17/2024

 
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.

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  • ABOUT
    • Contact Us
    • Subscribe
    • ORLA Board
    • OHF Board
    • ORLAMS Board
    • Staff
    • Industry Groups
  • MEMBERSHIP
    • Restaurant & Lodging Membership
    • Allied Membership
    • Buyers' Guide
    • Cost-Saving Member Programs >
      • ORLA Finance Center
      • Hospitality Insurance Program
      • Clover
      • SAIF
      • Hospitality Partners
      • Coupons & Discounts
    • Get Involved
    • Lodging Listings
  • ADVOCACY
    • Federal Advocacy
    • Get Involved
    • Take Action
    • Industry Grants
    • Legislative Agenda
    • Local Advocacy & Leadership
    • Lottery
    • Meet the Team
    • ORLA Outcomes
    • Portland Advocacy Blog
    • Regional Roundtables
    • Support PAC >
      • Donate to PAC
  • FOUNDATION
    • Foundation Board
    • Contribute
    • Guest Service Gold®
    • ProStart >
      • ProStart Championships
      • Prostart / CTE Resources
    • Workforce Blog
    • Workforce Development >
      • Best Practices
      • Restaurant Ready
  • TRAINING
    • Alcohol Server Training
    • Food Handler Training
    • ServSafe® Manager
    • Crises & Disasters
    • Guest Service Gold®
    • Human Trafficking
    • Industry Certifications
    • Oregon Tourism Leadership Academy >
      • Before You Apply
      • Experiential Learning Overview
    • RestaurantOwner
    • Restaurant Employee Development Training
    • Workforce Resources >
      • Best Practices
      • Restaurant Ready
  • RESOURCES / EVENTS
    • Ads & Sponsorships
    • Buyers' Guide
    • Blog
    • Calendar
    • Compliance & ADA >
      • Wage and Hour
      • Federal & State Agencies
    • Crises & Disasters >
      • Wildfires and Power Outages
    • Digital Publication
    • FAQs
    • ORLA Events >
      • ORLA Awards
    • Podcast
    • Regional Meetings
    • Sustainability >
      • Reducing Food Waste