OR SB1562

Changes the required allocation of local transient lodging tax revenue from at least 70% for tourism purposes to at least 40%, and increases the maximum allowed for city/county services from 30% to 60%

Expands allowable uses of lodging tax revenue to include city or county services provided by special districts, not just services provided directly by the city or county

Allows local governments with grandfathered tax regimes (in place before July 1, 2003) to use the new allocation percentages for both past unexpended revenue and future collections

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

Takes effect on the 91st day following adjournment of the 2026 legislative session, with amendments to ORS 320.350 becoming operative January 1, 2027, and the reporting requirement sunsetting January 2, 2041