OR HB4148

Changes the required allocation of local transient lodging tax revenue from at least 70% for tourism/no more than 30% for local services to at least 40% for tourism/no more than 60% for local services

Allows city and county services funded by transient lodging tax revenue to be provided by special districts on behalf of the city or county, not just directly by the local government

Permits local governments with grandfathered transient lodging tax regimes (established before July 1, 2003) to use the new allocation percentages for previously collected unexpended revenue

Requires local governments imposing transient lodging taxes to file biennial reports with the Department of Revenue by September 1 of odd-numbered years, beginning in 2027, detailing tax rates, revenue collected, and how funds were allocated

Takes effect 91 days after the 2026 legislative session adjourns, with the new allocation rules becoming operative January 1, 2027, and the reporting requirement sunsetting January 2, 2041