‘We don’t want to be Hood River’
THE DALLES — If you’ve made a hotel or vacation rental reservation for the summer, you might have noticed the final total ends up being higher than you may have initially expected. Part of this total may be cleaning and operator fees, but the other portion is taxes.
The State of Oregon takes a 1.5% Transient Lodging Tax on all hotels, vacation rentals, resorts and anywhere people stay on a short-term basis. Similarly, individual government entities such as cities or counties can impose their own lodging tax, which some jurisdictions refer to as a Transient Room Tax.
For example, if you stay in Ashland for the Shakespeare festival, you might pay the city an extra 10% on your bed and breakfast rate, while at the coast in Florence, you’ll pay both the city tax of 4% and Lane County’s 7%.
At a meeting June 10, The Dalles City Council sought input from residents about setting a vision for tourism in the Dalles. This effort is part of a three-session review of its 8% Transient Room Tax and the uses of these funds. Currently, the city is required to use 55% of its TRT funds on tourism promotion, with the remaining 45% going towards the city's general fund
The conversation also touched on short term rentals in an effort to guide possible changes to the city’s short term rental licensing process. The city council placed a year-long moratorium on new short term rentals Nov. 27, 2023.
The Dalles first adopted a TRT ordinance in 1977, and raised it to 6% in 1984.
City Manager Matthew Klebes recounted a 2% levy added in January 2003 to pay off city debt for the Union Street underpass and help fund the Northern Wasco County Parks and Rec department. After the final payment on the debt in 2014, the entire 2% goes towards Parks and Rec to this day.
The most recent update to the TRT occurred in 2020, which addressed some procedural changes, but the rate has remained the same for over twenty years. Hood River also has an 8% local TRT.
City staff provided three statements of approach to guide the vision-casting conversation, one emphasizing rapid tourism growth with support for short term rentals, one moderate approach, and one limiting short term rentals while balancing use of funds between tourism and other city needs:
1. “The Dalles is one of THE destinations for tourists in the Pacific Northwest supported by numerous hotels, numerous short-term rentals, and businesses and attractions that bring and rely on tourist dollars. The development of hotels and short-term rentals are strongly supported. A majority of TRT is used to grow TRT revenues, and the tourism industry, as fast and as much as possible.”
2. “Tourism is a growing industry in The Dalles that supports existing businesses and potential new ones such as restaurants, local shopping, and other attractions. STRs are allowed yet controlled. A substantial amount of TRT is used to moderately grow TRT revenues as well as support other City services.”
3. “Tourism plays an important supportive role for our local businesses and attractions and there is a balance between hotels, short-term rentals and other needs such as housing and industry. Short-term rentals are limited. A minimum of required TRT is used to maintain current TRT revenues.”
Klebes said one potential vision would be moving away from an emphasis on tourism; “However,” he said, “being in the Columbia River Gorge and having a substantial tourism presence here already, that really didn’t seem tenable to me.”
Representing the Chamber of Commerce on behalf of Lisa Farquharson, who had a family emergency, resident Dawn Rasmussen emphasized that tourism is an economic driver. She also advocated for professional tourism management.
“Tourism brings everybody together,” Rasmussen said, highlighting how a well-managed tourism strategy can support local businesses and enhance the city’s appeal without overwhelming it.
However, others voiced concerns about over-reliance on tourism. Victor Johnson, a local resident, asked the council, “How much of our economy do we want tourism to represent?”
He advocated for a balanced approach, warning against the risks of becoming overly dependent on tourism, a sentiment echoed by several council members.
“When people are asked what they want The Dalles to be like, probably the number one answer you get is, ‘We don’t want to be Hood River,’” Johnson said.
Scott Baker, executive director of the Northern Wasco County Parks and Recreation District, shed light on the critical role TRT funds play in maintaining the city’s parks.
“Without that money, we would not be able to function,” Baker said.
The conversation surrounding short-term rentals leaned towards continued limitations. Councilor Timothy McGlothlin and others acknowledged the responsible management by current operators but called for tighter restrictions moving forward.
“I’m still concerned about short term rentals,” said Councilor Darcy Long, who mentioned trends of corporations purchasing houses and removing them from the market where locals are looking to purchase their year-round dwellings.
“We need to find a balance,” Councilor Dan Richardson noted. He advocated for policies that keep housing affordable while still acquiring tax funds from short-term rentals. Richardson added that spending TRT funds on parks not only helps tourism, but benefits the community.
As the meeting progressed, the council members and residents largely supported vision statement number three, which prescribes a balanced investment in tourism with other needs while limiting short term rentals.
“Tourism does play an important role, but too much can erode the quality of life for residents,” Richardson said.
The discussion concluded with Mayor Richard Mays noting that two additional sessions discussing this topic will occur at future council meetings. The council will then incorporate feedback from these sessions into a revised ordinance.
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