The Oregon Legislature has approved a bill to increase the state’s lodging tax in order to fund wildlife conservation programs and provide support to ranchers who lose livestock to wolves.
The state Senate voted 20-9 to pass House Bill 4134, raising the tax on hotel stays, campgrounds and vacation rentals from 1.5% to 2.75%. The measure had already passed the Oregon House and now heads to Gov. Tina Kotek for final approval.
Supporters say the tax increase will help protect hundreds of species across the state, including fish, insects and bighorn sheep, while also supporting efforts to prevent poaching, control invasive species and address wildfire impacts.
Sen. Janeen Sollman said investing in wildlife is also important for Oregon’s economy.
“Outdoor recreation is a $16.2 billion industry, and at its heart are the wildlife and the habitats that draw people here in the first place,” Sollman said, adding that the state has not invested enough in protecting those resources.
The new tax is expected to generate nearly $37 million annually once it takes effect next year. A portion of the funding will also be directed toward programs that compensate ranchers whose cattle are killed by wolves.
Sen. Todd Nash said the issue has placed serious pressure on ranchers.
“It’s not sustainable for the ranching industry or for the mental health of ranchers who are dealing with these losses,” Nash said.
Although the bill received bipartisan support, many Republican lawmakers opposed the tax increase, arguing the state should use existing funds instead of raising taxes.
Senate Republican Leader Bruce Starr criticized the decision, saying lawmakers too often rely on tax hikes.
“It seems like the automatic go-to is just to ask taxpayers to pay more money,” Starr said.
Business groups, including the Oregon Restaurant & Lodging Association and Oregon Business & Industry, also opposed the proposal, warning that higher lodging taxes could hurt tourism and local businesses.
However, the measure gained support from a broad coalition of environmental groups, hunters and ranchers who said the funding is essential to protect wildlife and support rural economies.
Supporters noted that even with the increase, Oregon’s lodging tax would remain among the lowest in the country.
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