Following the federal funding cut for conservation in Oregon, lawmakers in Salem are seeking a new solution. House Bill 4134 in the Oregon House of Representatives, also known as “1.25% for Wildlife,” would raise the statewide Transient Lodging Tax from 1.5% to 2.75%, and allocate raised funds to a number of species and habitat conservation programs. The Transient Lodging Tax is a tax levied on short-term stays at lodging sites such as hotels, motels, bed and breakfasts, campgrounds, and vacation rentals.

The raised tax is expected to generate roughly $30 million each year, and the money will be distributed to Oregon’s State Wildlife Action Plan (SWAP), the Wolf Depredation Compensation and Financial Assistance Grant Program, the Oregon Conservation and Recreation Fund, the Invasive Species Response, ODFW’s Wildlife Connectivity Program, the Wildlife Stewardship Program, anti-poaching efforts through the Oregon Department of Justice, and the Oregon Conservation Corps. 

As habitats and species face the impending consequences of climate change, lawmakers continue to emphasize the importance of continued and dedicated funding to these conservation efforts. Currently, there are nearly 300 species at an elevated risk of extinction and 11 habitats of greatest conservation need in Oregon. 

Proponents of the bill argue that bolstered conservation efforts will help avoid economic consequences. Oregon’s outdoor recreation industry makes up roughly 2.6% of the state’s GDP, generates around $16 billion in annual consumer spending, and houses approximately 192,000 jobs, all powered by rich and thriving wildlife. Beyond preserving a key industry, HB 4134 is also expected to generate jobs, with the Oregon Watershed Enhancement Board estimating the creation of 15-24 jobs with every $1 million invested in restoration. Another important consideration raised by proponents of the bill is the fact that Oregon would remain having the third lowest Transient Lodging Tax in the country if this bill is enacted.

Those opposed to the bill argue that blanketly raising the statewide Transient Lodging Tax will discourage tourism and have adverse effects on the broader Oregon economy. Lodging industry leaders have emphasized that rising labor costs, higher insurance premiums, increased utility expenses, and ongoing inflationary pressures have already strained businesses, and potentially discouraging clients is not worth the potential economic fallout. Businesses located in areas with already high Transient Lodging Tax levels on the county or local level may be disproportionately affected as well.

The bill was referred to the Revenue Committee on Feb. 2, where it eventually left with a recommendation to be passed on Feb. 17. Its second reading on the House floor was on Feb. 18, and the third reading was on Feb. 23. Given its support both from both parties in the legislature and several interest groups across Oregon, HB 4134 is expected to pass the House. Despite this, it’s not clear whether or not it will be signed into law, as a similar proposal was stalled out by two Republican senators with a minority report.

Article by Zev Wacks