Transient Room Tax (TRT) Allocation the Subject of Springfield Chamber’s Latest Testimony

March 12, 2024

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In advance of the March 12^th Board of County Commissioners meeting, the Springfield Area Chamber of Commerce weighed in with commissioners on the allocation of the countywide 2% Transient Room Tax (TRT) increase, which has been in effect since January 1, 2023. Representing the interests of local businesses, Vonnie Mikkelsen, President and CEO of the Springfield Chamber, provided testimony emphasizing the importance of strategic investment for long-term economic health.

The Chamber’s testimony highlighted the need for clear guidelines regarding the allocation of TRT revenues. They stressed the importance of establishing an objective policy framework that outlines eligibility criteria and ensures transparency in the selection process for projects.

Read the full letter submitted by the Springfield Area Chamber of Commerce to Lane County Commissioners, below.

March 11, 2024
RE: Allocation of the countywide 2% Transient Room Tax (TRT) increase, in effect since January 1, 2023
TO: Lane County Commissioners
FROM: Vonnie Mikkelsen, President & CEO, Springfield Area Chamber of Commerce

Thank you for allowing constituents, community partners, and stakeholders the chance to provide input on precedent-setting decisions before you. Please accept these comments – which are informed by extensive study and deliberation on this issue – as a collective commitment to ensuring regional economic competitiveness, as well as a lens through which we deem the reinvestment of tax revenues a driver of the long-term economic health of our community.

In September 2022, the Board of county commissioners approved a 2% increase to the countywide TRT on top of existing local, county, and state room taxes. Neither the policy priority framework, TRT fund eligibility criteria, nor process by which projects might qualify for investment have been clearly defined, while the TRT revenues continue to be collected and go unallocated.

Given the many opportunities to reinvest these funds in projects across Lane County, we strongly encourage a clear and objective policy framework that articulates eligibility criteria and a transparent, fully informed process under which projects are thoroughly vetted for the highest economic returns, construction, and operational cost viability.

As long ago as 2018, local hotel and hospitality industry leaders expressed support for a room tax increase based on due diligence and a good faith intent to encourage tourism-based infrastructure improvements that would solve for the economic lag experienced in winter and shoulder seasons. The dialogue centered on the opportunity, with new tourism tax revenues, to build a year-round visitor economy that would boost business to local restaurants, retailers, and hotels. These are hospitality and tourism-reliant businesses who often operate on low margins, ever-increasing costs of goods, services, taxes, and whose workforce is impacted by a seasonably vulnerable economy during off-season months. These businesses have consistently maintained that investment of any new TRT should go to drive and correct for the off-season visitor economy.

We encourage the careful study of highest and best use of these new TRT streams and the overall desired outcomes, including benefits for local and countywide tax base, with targeted investments in tourism-based facilities that attract new business to our winter and shoulder season economy.

In September 2022, the Springfield Area Chamber of Commerce submitted to the Board of County Commissioners our position that the highest and best use of any new increase in TRT lies in projects that bolster winter and shoulder season tourism. Our position remains firm that:

TRT reinvested in our challenging winter economy is good for local businesses, from hotels to restaurants and retail, and will support year-round employment.
Increasing visitor demand in winter will grow TRT revenue for all recipient programs and jurisdictions.
Increases in TRT should be used in ways that are relevant to drawing visitors, as hotels’ end price to consumers is impacted. This is required by state statute and is good and fair policy.

Thank you for considering our position on this matter. We look forward to collaborating with you to ensure the continued economic prosperity of Lane County.

Warm regards,