BALLOT MEASURE 29-183
TRANSIENT LODGING TAX

VOTE NO TRANSIENT LODGING TAX INCREASE

Oregon Coast Hosts opposes Ballot Measure 29-183 which would increase the current 10% Transient Lodging Tax (TLT) to 14% mid-year 2026. This proposed 40% increase in tax applies to all lodging in Tillamook County including both cities and unincorporated communities. This is an unprecedented 40% tax increase which could backfire by economically damaging our local economies which rely on visitors in a wide variety of ways.

Voters are saying Tillamook County needs:

more financial oversight
tighten spending
no new taxes
distribute current TLT funds better

Homeowners are concerned about the impact this could have on the tourism industry, which is a vital part of our local economy.

TLT REVENUE IS 5x ITS INITIAL PROJECTION

While the 10% tax rate has not increased since it was initially established in 2014, the TLT revenue generated has skyrocketed and far exceeded expectations. The initial projection in 2014 was that TLT would generate $1.5 million annually. Over the last ten years the TLT revenue has increased dramatically from $2.3 million (2014) to $7.6 million (2024). We simply don't need to raise the TLT 40% when the actual revenue is already 3x the revenue generated its first year, and 5x the initial projection. This substantial source of revenue has brought $55 million to Tillamook County over the last 10 years. A 40% tax increase is akin to shooting the Golden Goose of Tillamook County & we urge voters not to approve a short-sighted decision that could lead to long-term losses.

HISTORY OF TLT

Understanding the history of TLT is crucial when considering changes (credit to OCVA). TLT was originally created by the private tourism industry itself as a proposal to tax its own customers in an effort to grow the statewide economy. This original proposal was approved based on a deal made between the state and the tourism industry to earmark 70% of TLT for tourism. Raising the TLT punishes the tourism industry for thriving. The tourism industry created TLT and guards it fiercely so that it's not viewed as a source of general revenue by local communities. Check out this helpful video from OLRA: Local Lodging Tax Defined. TLT allocations may vary within incorporated cities such as Rockaway & Manzanita, while the general 70/30 split applies to unincorporated areas of Tillamook County and the numbers on OCH charts reflect these figures. The proposed increase in TLT will apply to all of Tillamook County (both incorporated & unincorporated areas).

TAXATION WITHOUT REPRESENTATION

Why does Tillamook County want the TLT percentage to jump so high? It is likely because they have spending control over such a small portion. When the TLT was initially created it was mandated by state law that 70% would be dedicated to tourism, while the 30% balance could be used at the discretion of Tillamook County. Efforts to change this distribution have repeatedly failed at the state level. When TLT was originally approved it was intended primarily for tourism and funds to counties were intentionally limited to avoid counties using TLT as their personal cash register and taxing tourists without representation. Now that the timber revenues have fallen, and Tillamook County has a budget deficit, more people want a part of the TLT. It's simply not the purpose of TLT. Our visitors do not want to pay extra TLT & we are their voice.

WE SUPPORT OUR SHERIFFS & PUBLIC SAFETY

Oregon Coast Hosts agrees that funding for our sheriffs and public safety are vitally important. This 40% tax increase does not effectively get funds where they need to go the most. The majority of the TLT revenue will continue to go right back to tourism, and even the tourism industry is saying we don't need this additional revenue. We want the sheriff and public safety to have more funding, but state law prevents this currently if it's tied to TLT. The Oregon Coast definitely has a surge of visitors in the summer, however they are not all overnight guests staying in short-term lodging. Our guests are already paying more than their fair share to enjoy Tillamook County and a wider net needs to be cast to offset the additional time for our sheriffs. Historically, 911 calls from short-term rentals are extremely low according to data provided by Tillamook County.

BUDGET BAND-AID

This 40% tax increase is a band-aid for our budget shortfall that could do more harm than good. At 14% TLT, Tillamook County would be ranked #1 with the highest lodging tax along the Oregon Coast. Visitors may reduce their length of stay, which reduces their local spending when visiting, or they may choose to vacation elsewhere. Our community relies on tourism as an important part of our economy. Many lodging operators reported reduced occupancy for 2024 and have concerns that a tax increase will exacerbate this decline in overnight visitors.

TILLAMOOK COUNTY NEEDS TO BETTER BALANCE THEIR BUDGET

Even though the tourism industry stands to gain an estimated $7 million annual allocation from an increase in TLT, Oregon Coast Hosts does not support this increase. The cost is too high. Tillamook County needs to balance their budget better, as so many families in our local communities do every day. This proposed 40% tax increase puts more pressure on a key industry with unfair taxation.

IMPACT OF HIGHER TLT ON TOURISM

A 40% increase in TLT could force businesses to lower nightly rental rates, reducing revenue at a time where we are seeing a 4 year trend downwards in average occupancy and an increase in cost of living and expenses. Tillamook County's data shows most STRs do not have high annual revenue. Many families share their homes with visitors to simple offset the cost of ownership.

2024 LODGING REVENUE & OCCUPANCY

Data shows that overall TLT revenue is up for 2024 over 2023, despite an overwhelming number of individual lodging owners reporting lower occupancy and lower revenue. Tillamook County has not provided occupancy data. Key Data has compiled data which supports an overall decline in market conditions for 2024: Key Data. There could a few reasons for this disparity:

Lodging owners are passing along increased costs of living by raising nightly rates to cover increases in various operational costs including wages for employees, cleaning, insurance, and utilities. Owners are reporting that nightly rates are maxed out and requests for discounts are up. There is not room for a 40% tax increase for our travelers.
Many owners & managers are reporting lower occupancy and lower revenue for 2024 than 2023, while others experienced increases in both for 2024.
STRs that were not previously active are now renting due to Tillamook County's new "Use It or Lose It" rule which requires renting every year to maintain an STR license. More active STRs could explain more TLT revenue overall.

FACTS

This is a 40% increase in the tax rate
TLT has generated $55 million for Tillamook County from 2014-2024
By state law 70% of all TLT is earmarked for Tourism
Tillamook County has discretion over how to spend the remaining 30%
This TLT will apply to all lodging in Tillamook County including incorporated cities
The Sheriff's Office Fund will receive only 80% of the county's 30% share of the new TLT (11%-14% range) and not 80% of the total TLT
The Sheriff's Office Fund will receive only $69 of every $1,000 TLT
Emergency communications & services will receive only $17 of every $1,000 TLT
Tourism funds will receive $700 of every $1,000 TLT
Occupancy percentages continue to decline
If voters approve 14% TLT, then Tillamook County will have the highest TLT on the Oregon Coast:
- Lincoln County 12%
- Clatsop County 10.5%
- Seaside 10%
- Cannon Beach 9.5%
- Newport 12%
OCH is 100% volunteer driven and no funds are being spent to oppose this ballot measure
2014-2024 TLT Complete Revenue Data
2014-2024 TLT Summary Revenue Data

TLT BREAKDOWN

The distribution of the original 10% TLT will remain unchanged
- 70% Tourism Promotion & Tourism Related Facilities
- 30% Roads
The distribution of only the new TLT (the top 11%-14%) will be allocated as follows:
- 70% Tourism Promotion & Tourism Related Facilities
- 30% will be divided three ways:
  - 80% of the 30% of only the new top 11%-14% dedicated to Sheriff's Office
  - 10% of the 30% of only the new top 11%-14% dedicated to Emergency Communications
  - 10% of the 30% of only the new top 11%-14% dedicated to Emergency Management