HB 4148 — Relating to local taxation; and prescribing an effective date.

83rd OREGON LEGISLATIVE ASSEMBLY--2026 Regular Session A-EngrossedEnrolled House Bill 4148 Ordered by the House February 23 Including House Amendments dated February 23 Sponsored by Representative WALTERS, Senators NERON MISSLIN, WEBER, Representative JAVADI;

Represen-Representatives tatives GAMBA, GRAYBER, HELM, MCDONALD, SenatorSenators CAMPOSCAMPOS, (PresessionFREDERICK, filed.)MANNING SUMMARYJR The(Presession followingfiled.) summaryCHAPTER is................................................. not prepared by the sponsors of the measure and is not a part of the body thereof subject to consideration by the Legislative Assembly.

ItAN isACT anRelating editor’sto brieflocal statementtaxation; of the essential features of the measure.

The statement includes a measure digest written in compliance with applicable readability standards.

Digest:

The Act would let local transient lodging tax money be used for grants to small dining and lodging businesses.

The Act would also let the tax money be used for services provided by a special district in lieu of a city or county.

The Act would change the split of tax uses from at least 70 percent for tourism and no more than 30 percent for local services to at least 50 percent and no more than 50 percent.

The Act would let local governments with grandfathered tax laws use the tax money in the new split ratios.

The Act would make local governments file a tax revenue report every other year for LRO to combine and submit to the legislature.

The Act would have LRO study the uses of the net revenue as allowed under the Act and turn its findings in to the legislature.

(Flesch Readability Score:

61.6).

[Digest:

The Act would let local transient lodging tax money be used for city or county services provided by a special district in lieu of the city or county.

The Act would change the split of tax uses from at least 70 percent for tourism and no more than 30 percent for local services to at least 40 percent and no more than 60 percent.

The Act would let local governments with grandfathered tax laws use the new provisions of the Act.

The Act would make local governments file a tax revenue report every other year.

(Flesch Readability Score:

60.7).] Allows net local transient lodging tax revenue to be used for resiliency grants for small businesses in the restaurant and lodging industry.

Allows city and county services for which net local transient lodging tax revenue may be used to be provided either directly by the city or county or indirectly by a special district.

Changes the division of allowable uses of net local tran- sient lodging tax revenue from at least 70 percent for tourism-related expenses and no more than percent for city or county services, to at least [40] 50 percent and no more than [60] 50 percent, respectively.

Allows units of local government with restricted grandfathered local transient lodging tax regimes to take advantage of the new provisions of the Act.

Establishes biennial reporting by local governments of amounts and uses of local transient lodging tax revenue, the reported infor- mation to be aggregated by the Legislative Revenue Officer and submitted to the Legislative Assembly.

Directs the Legislative Revenue Officer to conduct a study of the percentage re- quirements for allowable uses of local transient lodging tax revenue as amended by the Act and to submit the findings to the Legislative Assembly.

Takes effect on the 91st day following adjournment sine die.

A BILL FOR AN ACT Relating to local taxation;

(2) A unit of local government that imposed a local transient lodging tax on July 1, 2003, may not increase the rate of the local transient lodging tax on or after July 2, 2003, to a rate that is greater than the rate in effect on July 1, 2003, unless the increase was approved on or before July NOTE:1, 2003.

Matter in boldfaced type in an amended section is new;

matter [italic and bracketed] is existing law to be omitted.

New sections are in boldfaced type.

LC 18 A-Eng.

HB 4148 1, 2003.

(4) Notwithstanding subsections (1) and (2) of this section, a unit of local government that is fi-financing nancing debt with local transient lodging tax revenues on November 26, 2003, must continue to fi-finance nance the debt until the retirement of the debt, including any refinancing of that debt.

If the tax is not otherwise permitted under subsection (1) or (2) of this section, at the time of the debt retirement:retire- ment:

Enrolled House Bill 4148 (HB 4148-A) Page 1 (b) Fund city or county services, whether emergency or nonemergency services, provided directly by the city or county or by a special district in lieu of the city or county;

[2]SECTION A-Eng.3.

HBThe 4148amendments SECTIONto 3.ORS 320.350 by section 1 of this 2026 Act apply to net revenue collected by units of local government before, on or after the effective date of this Act.

The amendments to ORS 320.350 by section 1 of this 2026 Act apply to net revenue collected by units of local government before, on or after the effective date of this 2026 Act.

Enrolled House Bill 4148 (HB 4148-A) Page 2 (3)(a) Any destination management organization or other entity receiving local transient lodging tax revenue under an agreement entered into with a unit of local government shall submit a biennial report to the unit of local government for inclusion in the biennial report required under subsection (1) of this section.