SALEM, Ore. — Today, the Oregon Legislature passed House Bill 4134, $38 million tax increase on the already struggling hospitality sector adding yet more financial burdens to businesses and Oregonians struggling with an affordability crisis.

“Passage of House Bill 4134 dismantles one of Oregon’s last remaining revenue streams dedicated for economic development, completely ignoring Governor Tina Kotek’s efforts to boost prosperity throughout the state,” said Jason Brandt, president and CEO of the Oregon Restaurant & Lodging Association. “State lawmakers have threatened one of the best economic development tools the state has seen – a $40 million investment at the state level and hundreds of millions at local levels resulting in a $14 billion return and 200,000 tourism jobs. But all of that’s now at risk if House Bill 4134 is signed into law. The only way to stop this terrible legislation would be a Governor veto.”

Just this week, yet another Portland hotel was sold for a fraction of its value because the city’s hotel occupancy hasn’t recovered from the pandemic. Pre-pandemic occupancy topped 70% before 2020. But in 2025, Portland’s average occupancy hasn’t risen above 62%. Portland lags other cities in recovery by 13%, ranking 163rd out of 172 major markets. House Bill 4134 adds yet another burden to this already struggling sector.

House Bill 4134, an 83% tax hike on state lodging taxes, also set a new precedent of raiding lodging tax revenue for issues unrelated to economic development, and diverting vital funds for continued promotion of Oregon to attract visitors and their dollars. More than $11 million of the $38 million tax hike will be shouldered by Oregonians traveling within the state.

Since 2003, Travel Oregon’s utilization of the statewide lodging tax has doubled visitor spending, tripled tax revenue and created 35,000 direct tourism jobs. Oregon’s hospitality and leisure industry is the 3rd largest private sector employer in the state. The industry supports more than 200,000 jobs and contributes $14 billion annually in economic activity that stays in our state.

ABOUT ORLA

The Oregon Restaurant & Lodging Association (ORLA) is the leading business association for Oregon’s foodservice and lodging industry. A not-for-profit trade organization, ORLA represents approximately 3,000 member units and advocates for more than 11,300 foodservice locations and 2,000 lodging establishments statewide—an industry that employs 201,300 Oregonians and generates $14 billion in annual sales.