Controversial Lodging Tax Passed by Oregon Lawmakers

Published 03/09/26 at 6:55 a.m.
By Oregon Coast Beach Connection Staff

(Manzanita, Oregon) - Oregon lawmakers this week approved House Bill 4134, a $38 million increase in statewide lodging taxes that raises the rate from 1.5% to 2.75%. The additional revenue is earmarked for conservation programs and reimbursements to ranchers for livestock losses tied to wolf activity.

Supporters lauded the bill as a needed investment in wildlife management, but hospitality leaders warned it adds pressure to an industry still struggling.

HB 4134 hits right down the middle ground between the two sides.

Jason Brandt, president and CEO of the Oregon Restaurant & Lodging Association, said the measure undercuts one of the state’s few remaining revenue streams dedicated to economic development. He argued the lodging-tax system has historically generated major returns for Oregon through tourism spending and job creation, and urged Gov. Tina Kotek to veto the bill.

Industry concerns come as Portland’s hotel market continues to lag behind pre-pandemic levels. Another downtown property sold this week at a steep discount, reflecting occupancy rates that remain stuck around 62% - far below the more than 70% seen before 2020 and trailing other major U.S. cities by double-digit margins.

Nehalem River Inn mid-century

Brandt said the bill amounts to an 83% hike in the state lodging tax and sets a precedent for diverting tourism-promotion dollars to unrelated programs. He noted that more than $11 million of the increase will be paid by Oregonians traveling within the state.

Groups like the Oregon Ocean Alliance said this needed to happen.

“Oregon is taking historic steps to invest in our wildlife, our coastlines, and the habitats that define our state,” the group said in a press release. “From our ocean ecosystems to landscapes statewide, hundreds of at-risk species will benefit from this long overdue commitment.”

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Oregon coast hoteliers are not exactly pleased to hear the news, either. While none wanted to go on record and be named, they agreed with the both the need for wildlife preservation but also expressed concern over the rate rise they have to pass on to visitors.

One told Oregon Coast Beach Connection he wanted to stay out of any political discussions, but said on conditions of anonymity it would hurt the industry. He – like proponents – said that animals and wildlife in the region are part of the big attraction, but there is a “time and place and adding more on to lodging-tax” was not the right way.

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