Oregon transient lodging tax will temporarily increase from 1% to 1.8% beginning July 1, 2016. This temporary lodging tax has been designed to create a $25 million-subsidy, earmarked for the 2021 World Track and Field Championships in Eugene. The tax will take a small drop to 1.5% in four years.
This lodging tax increase comes on the heels of the newly enacted minimum wage increase that also goes into effect July 1, 2016, creating a double blow that the hospitality industry will have to absorb. The minimum wage increase is the first of seven annual increases through 2022. Oregon will be the first state to move away from the flat statewide minimum wage, opting instead for a tiered approach. by region, that takes cost of living and other economic factors into consideration.