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83rd OREGON LEGISLATIVE ASSEMBLY--2025 Regular Session
House Bill 3325
Sponsored by Representative JAVADI
SUMMARY
The following summary 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. It is an editor’s brief statement of the essential features of the
measure as introduced.The statement includes a measure digest written in compliance with applicable readability
standards.
Digest: The Act would let tax districts in counties with high tourist counts use a certain percent
of net lodging taxes for essential services. (Flesch Readability Score: 62.1).
Provides that taxing districts within counties with high averaged annual ratios of tourists to
residents may expend a certain percentage of net transient lodging taxes for essential services that
benefit both residents and tourists.
Takes effect on the 91st day following adjournment sine die.
A BILL FOR AN ACT
Relating to transient lodging taxes; and prescribing an effective date.
Be It Enacted by the People of the State of Oregon:
SECTION 1. Section 2 of this 2025 Act is added to and made a part of ORS 320.345 to
320.365.
SECTION 2.(1) As used in this section, “essential services” means the maintenance of
highways as defined in ORS 801.305, public parks, public safety, and sanitation facilities, that
benefit both residents and tourists in a recreational district.
(2)(a) A county shall be considered a recreational district if the average ratio for the
immediately preceding three calendar years of annual overnight tourists in locations within
the county to residents is 100:1 or greater.
(b) On or before December 31 of each year, the governing body of each county shall de-
termine the average annual ratio using tourism data provided by the Oregon Tourism Com-
mission or any entity that the commission recommends.
(c) The governing body shall notify each unit of local government within the county that
imposes a transient lodging tax and the Department of Revenue of the ratio, which will de-
termine recreational districts for the subsequent calendar year.
(3) Notwithstanding ORS 320.350 (5) and (6), local transient lodging taxes collected by
units of local government within each county determined to be a recreational district for the
current calendar year shall be allocated as follows:
(a) Of the first five percent of the taxes collected:
(A) Seventy percent shall be used for essential services provided by the unit of local
government that imposed the tax; and
(B) Thirty percent shall be used for the purposes described in ORS 320.350 (5)(a) or (c).
(b) Of the remaining 95 percent of the taxes collected:
(A) Thirty percent shall be used for essential services provided by the unit of local gov-
ernment that imposed the tax; and
(B) Seventy percent shall be used for the purposes described in ORS 320.350 (5)(a) or (c).
NOTE: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 1264 HB3325
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(4) Nothing in this section may be construed as amending the provisions of ORS 320.350
(1) to (4).
SECTION 3. This 2025 Act takes effect on the 91st day after the date on which the 2025
regular session of the Eighty-third Legislative Assembly adjourns sine die.
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