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Tourism industry touts lodging tax
Copyright 2003 The Associated Press SALEM, Ore. - Oregon's tourism industry is launching an ambitious push to convince legislators to create a 1 percent tax on all lodging in Oregon. The money would be used for an international advertising campaign to promote the state's flagging tourist industry, which has been struggling since the Sept. 11 terror attacks. It would be the first statewide tax of its kind, and would raise about $7 million a year, dramatically increasing the amount of money Oregon could spend on self-promotion. But the proposal could face plenty of opposition, especially since it would come on top of local government taxes already levied on motel, hotel and inn guests. Some motel owners say they worry about the effect of escalating room costs, while local-government lobbyists have dubbed it an assault on local control. And they criticize a provision of the proposal, which would prohibit cities and counties from adopting or increasing their own hotel/motel tax - unless the money is spent to promote tourism. Ken Strobeck, executive director of the League of Oregon Cities, says that clause seals off a potentially crucial revenue stream for cities, as local governments use lodging taxes to pay for everything from parks to sewer systems. The group will make opposing the proposal a top priority, he said. Of Oregon's 238 cities, 80 have adopted some form of the lodging tax. The rest could not do so if the tax passes. Supporters say luring more tourists to Oregon would create more jobs and burnish the state's reputation as a good place to do business. "We feel this is one of the few strategies that could give a little kick start to the economy," said Joe D'Alessandro, president and CEO of the Portland Oregon Visitors Association. The bill will go to the House Revenue Committee, headed by Rep. Lane Shetterly, R-Dallas. Shetterly said the preemption of local taxes could dim the bill's chances. Shetterly and Strobeck said they would be interested in a compromise - a statewide tax, but not a ban on new local lodging taxes. But supporters say it's all or nothing. The Oregon Tourism Commission, with a $6
million budget for 2001-2003 that is financed by the Oregon State Lottery,
ranks 46th among states in tourism spending, said Todd Davidson, the
commission's executive director. Of that, $1.7 million goes to advertising,
which he said is far less than what most states spend. |
