Tourism tax talk: City of Bend backs change in room tax revenue split, but local travel groups push back
(Update: Adding comments from City of Bend, Visit Bend)
BEND, Ore. (KTVZ) -- Construction is underway at Miller's Landing for easier access to the Deschutes River. It's funded in part by Visit Bend's Sustainability Fund, which grants thousands of dollars each year to local community projects through its share of the transient room tax. But that could soon change, if House Bill 3556 advances in Salem.
"After this bill passes, it will come down to how cities interpret the use of those dollars. We are concerned about balance here," said Visit Bend CEO and President Jeff Knapp. "We are very thoughtful in how we do our work. Over the last three years, we've seen a 6% decline in visitation. And yet we've seen 26% of new households moving to Bend. "
According to Visit Bend's website, anyone staying in a Bend hotel, vacation rental or other short-term lodging pays a 10.4% tax to the city of Bend.
Roughly 70% of the funds generated are kept by the city and Deschutes County, while Visit Bend and Visit Central Oregon get nearly 30%. If passed, the bill would allow local government to have more control over what tourism-generated revenue can be allocated to.
"We're committed to being part of the conversation and really just understanding the levers that we pull to help keep the community stewarded and sustainable," said Knapp.
Of the $7.8 million brought in from the transient room tax in Bend since last summer, $5 million will be used for core services like police, fire and maintaining the city streets.
But Bend Mayor Pro-Tem Megan Perkins says that money is not enough: "Tourism is really hard on the city. And right now, we are not able to make the kinds of investments that we need to make, having this really strong tourism base."
Travel numbers are expected to increase more than 5% this spring break, according to TSA and thousands are predicted to visit Bend Memorial Day weekend.
Some residents on social media have long called for the defunding of Visit Bend, not fond of some of the impacts large numbers of visitors bring. But Knapp says they're actually saving locals money.
"The tourism economy is an additional engine," he said. "Because our property tax laws are restrictive, because of our growth boundaries and not having a sales tax, it's another way to generate revenue to offset those things."
The bill has been sent to the House Committee on Emergency Management, General Government, and Veterans and is scheduled for a hearing next Tuesday, March 25th.
