FILE - Mountain meadow carpeted with wildflowers near the East Lostine River in Oregon’s Eagle Cap Wilderness.
Jule Gilfillan / OPB
Oregon House lawmakers voted Tuesday to hike the state’s lodging tax to pay for wildlife conservation programs and to compensate ranchers whose cattle are killed by wolves.
A bipartisan group of lawmakers advanced House Bill 4134 to the state Senate. The bill earned the exact number of yes votes — 36 — needed to raise a tax under Oregon law. If passed, it would increase a state tax on stays at campgrounds, hotels and vacation rentals from 1.5% to 2.75%.
Under the bill, the revenue generated would go to a variety of programs in the Oregon Department of Fish and Wildlife and other state agencies, including those that seek to tackle poaching through law enforcement, prevent the spread of invasive species and mitigate wildfire.
Supporters say those programs have historically lacked a consistent and sufficient source of revenue, relying heavily on fees on hunting and fishing licenses. The new bill, which would kick in next year, is projected to raise nearly $37 million in revenue per fiscal year.
The vote came after a lengthy debate that centered on whether supporting conservation programs should come on the back of the tourism industry. The bill was backed by an unusual alliance of environmentalists, cattlemen, hunters and fishermen who have historically been at odds over many environmental policies.
Its passage was hailed as a step toward preserving the state’s natural spaces and the hundreds of species statewide under threat by pollution, climate change and habitat loss. Those include coho salmon, bighorn sheep, insects, plants and more.
“It is a mistake to let this opportunity pass by today,” said Rep. Ken Helm, D-Beaverton, who has worked on the legislation for a decade and plans to retire from the Legislature this year. “It is a mistake because the opportunity will not soon come again.”
Opponents decried the bill as damaging to Oregon’s tourism industry, voicing concerns that the tax increase would further kneecap the state’s ailing economy. House Republican Leader Lucetta Elmer, who voted against the bill, noted that revenue generated by the state’s lodging tax has long gone toward tourism promotion.
“That’s hard for me, when we’re considering a tax that is something different,” Elmer said. “Funding is very important, obviously. But funding alone is not the solution to our conservation topic.”
Three Democrats voted against the bill. Rep. Daniel Nguyễn, D-Lake Oswego, acknowledged that Oregon’s beauty draws visitors who are a key part of the state’s economy. However, he said, “At the same time, the restaurant and tourism industry of which we are also widely known for has not fully recovered to pre-pandemic levels.”
“I’m really reluctant to do anything that jeopardizes the full recovery of that industry at this time,” said Nguyễn, who owns Bambuza Hospitality Group, which operates restaurants.
But a small group of eastern Oregon Republicans helped give the bill the votes needed to advance, arguing the tax increase was necessary to buoy the hunting, fishing and cattle industries that are critical to their districts.
“I won’t sacrifice our ranchers, our farmers and the jeopardy they are going through,” said Rep. Mark Owens, R-Crane.
He said the tax increase would not likely be noticed by visitors, adding: “If you choose to go to a more luxurious hotel, it might be a couple dollars or the cost of a Starbucks coffee.”
“Is that going to deter tourists from coming in here?” Owens said. “I would say no.”
The bill was scheduled for its first reading on Tuesday in the Senate, where it also has bipartisan support. A similar bill died in that chamber last year.
