Local tourism operator urges council to guard transient lodging tax for tourism as legislature weighs HB 3962

A Depoe Bay tourism business owner used the public-comment period to urge councilors to preserve the original purpose of transient lodging-tax (TLT) funds as the Oregon Legislature considers House Bill 3962, which would alter allowable uses of those funds.

The speaker, identified in the record as a public commenter and operator of local tourist facilities, said the TLT was established to fund tourism advertising and facilities and described a risk if the legislature broadens permissible uses to include general infrastructure such as water and sewer. "The fund was originally established to help fund tourism on the coast," the commenter said. "If they allow for this fund to be used for water and sewer, we are no longer going to fund tourism."

The commenter said Depoe Bay currently expects approximately $1.8 million in TLT revenue and noted that the 70-percent allocation traditionally supports advertising and facilities; in the city's case, the commenter said a portion of the 70 percent had been allocated to harbor improvements. The commenter expressed concern that a change in statute or allocation (for example, flipping the 70/30 split) could divert local TLT dollars away from promotion and visitor-serving facilities.

Councilors did not take formal action on the public comment; staff said they would monitor legislative developments. The speaker requested that council maintain a local policy emphasis on tourism promotion if the law changes so that advertising and facility upkeep are not displaced by other municipal infrastructure spending.