Most folks outside of the travel industry don’t give the Transient Lodging Tax much thought.
The TLT is the surcharge you pay when booking a hotel room for stays under 30 consecutive days. While the tax varies by region (Here in Pendleton it’s 8% + 1.5%, with an additional flat fee of $1.50 per room; in Portland it’s significantly higher), the surcharge play an important role funding a city’s ability to promote itself as a tourist destination.
Because the money is generated by tourism, the lion’s share of money collected is reinvested back into tourist infrastructure, including developing tourism infrastructure, marketing and promotion.
Currently, the amount of money brought in through this tax is split 70/30, with at least 70% being reinvested into the tourism sector. However, HB 4148, a bill currently under consideration in Salem may shift the distribution of these funds, reducing the amount earmarked for tourism to 40%.
Many in the travel and tourism industry are opposed to this redistribution.
At a meeting hosted by the Eastern Oregon Visitors Association shortly before a discussion of the bill in Salem, Executive Director of the Wallowa County Chamber of Commerce Jennifer Piper said that the bill represented “a major assault on the TLT,” stating that, if passed, HB 4148 would have a negative impact on rural communities throughout Eastern Oregon relying on the tax to fund programs that benefit rural communities throughout the region.
“TLT dollars have a beneficial impact on local communities beyond just the visitor experience,” Piper said. One example given was that TLT dollars can be used to preserve historic buildings and other areas in towns whose appeal to tourists and travellers are directly linked to history.
Pendleton, of course, is a prime example of a town in Eastern Oregon that promotes itself as a nexus of historical preservation. It’s not a far stretch to say that the unique combination of art, culture and Old West ambiance is Pendleton’s brand.
According to Travel Pendleton Director Justin Waldron, these funds – both those generated by TLT and especially Pendleton’s own flat fee (TPAC, or Tourism Promotion Assessment Charge) are incredibly important, as these funds go directly back into promoting Pendleton.
“Pendleton depends on visitors, and the funds collected go directly back into promoting Pendleton,” Waldron said. “If this bill passes, it will take funds away from our ability to promote Pendleton as a tourist destination, and this will have a negative impact on Pendleton’s overall economy. Eastern Oregon is the largest region for tourism in the state, and because it is also the most spread out, it is imperative for rural communities to advocate for protection of the intended use of tourism generated revenues.”
House Bill 4148 will be discussed in Salem this afternoon. Eastern Oregon Living will update this story as needed.
Image courtesy of Travel Pendleton
Learn more about House Bill 4148 at The League of Oregon Cities website.
