Our View: State lodging tax increase needn't be permanent - Opinion - MailTribune.com - Medford, OR

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0 of 3 Premium Clicks used this month SUBSCRIBE Print + Online Subscriber Activation  |  Register x Forgot Password | Need an Account? e-edition | subscribe | newsletter | deals Classifieds Jobs Autos Real Estate FEATURED   » NEWS NOW   Emergency services, March 4       ...       Pot grows illegal on rural residential land in Jackson County       ...       Oregon lawmakers pass housing bills as session ends       ...       Emergency services, March 4       ...       Pot grows illegal on rural residential land in Jackson County       ...       Oregon lawmakers pass housing bills as session ends       ...           OUR VIEW Our View: State lodging tax increase needn't be permanent Comment MailTribune.com Writer Posted Feb. 25, 2016 at 12:01 AM Posted Feb. 25, 2016 at 12:01 AM »  Social News A bill to increase the state's lodging tax to help Eugene host a world track championship in five years has passed the House after it was scaled back a bit. In general it seems a reasonable move that will benefit the entire state, but it should be scaled back further. TrackTown USA, a nonprofit corporation formed to bid on and host the 2021 world event, asked the state for $25 million to help cover costs. The University of Oregon and Nike have advocated for state support for some time. The benefits to Oregon are considerable. The world championship event will bring thousands of international visitors to Oregon, which can only benefit Oregon's tourism industry in the long run. The original bill called for doubling the state hotel/motel tax from 1 percent to 2 percent — the state tax on a $100-a-night room would go from $1 to $2. That's an amount travelers likely would barely notice, but it would generate $27.4 million in the next biennium. As amended, House Bill 4146 would increase the tax to 1.8 percent rather than 2 percent. Lodging taxes are the best of all possible revenue sources: other people's money. More than three-quarters of the proceeds come from out-of-state visitors, hence the temptation to see an increase as benign. That's part of the reason HB 4146 makes the increase permanent rather than temporary. The other reason is, the bill would generate more than the TrackTown request, meaning more money for tourism programs across the state. Under the measure, the state would parcel out money to regional tourism agencies, which could use it for any purpose benefiting tourism, including events and facilities. That's a change from existing state law, which says 80 percent of the tax money must be spent on marketing. The bill is not universally popular around the state. In particular, officials in Portland are concerned an increase could hurt that city's ability to compete for conventions because state and local lodging taxes already add up to 13.5 percent, the highest rate in the state. We don't have a great deal of sympathy, considering Portland officials are the ones who approved those local add-ons. It's not clear why the proposed increase must be permanent; the TrackTown request is a one-time expenditure, after which the tax could return to its previous level. We understand the need to attract the necessary three-fifths majority vote in the Legislature by offering money to all parts of the state, but we also know Oregon residents will see this for what it is: another one-time investment that becomes a permanent revenue source. The bill moves to the Senate, where additional tweaking may occur. The bill deserves to pass — if contains a sunset clause. MailTribune.com Writer Posted Feb. 25, 2016 at 12:01 AM » Comment or view comments   Reader Reaction »  STAY INFORMED   Email NewsLetter   Sign Up Today   Sign up for our newsletter and have the top headlines from your community delivered right to your inbox. Southern Oregon Directory Featured Businesses Loading... 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