Council updates lodging tax law, securing majority control of Tourism Revenue
Hotels, and short term rentals, pay an 8 percent transient lodging tax in The Dalles. A new law approved unanimously on Monday permanently gives the city 55.4 percent of the revenue for city services and infrastructure.
The Dalles, Ore., March 10, 2026 — The Dalles City Council unanimously adopted an ordinance Monday updating the city’s transient lodging tax code but postponed a decision on whether the Oregon Department of Revenue should administer the program.
Councilors approved the ordinance during their March 9 meeting after amending the motion to remove language that would have immediately authorized the city manager to enter an intergovernmental agreement with the state.
Instead, city staff will study whether state administration would benefit the city and return with recommendations before the council decides whether to shift the program away from local control.
The ordinance itself does not change the city’s 8% lodging tax rate, which has remained in place since 2003.
The tax generated about $1.45 million in revenue during the 2024–25 fiscal year, according to city background materials.
Under Oregon law and the new ordinance, 55.4% of lodging tax revenue must be spent on tourism promotion, which equals roughly $803,000 annually based on recent collections. The city currently contracts with The Dalles Area Chamber of Commerce for $465,000 per year to handle tourism marketing and visitor promotion.
The remaining portion of the tax — about $647,000 annually — can be used at the City Council’s discretion for city services or infrastructure.
Nuisance cleanup liens approved
The council also approved two nuisance abatement resolutions on its consent agenda placing liens on properties where the city hired contractors to remove violations after property owners failed to comply with cleanup notices.
One assessment seeks to recover $2,200 in cleanup costs from a property at 2315 E. Second St., where the city removed junk and dog feces from the site, according to the staff report.
Downtown festival draws crowds a Hoot!
River City Saloon was jammed during the inaugural Hoot music festival in downtown The Dalles.
During public comment, organizers of the inaugural Dalles Hoot music festival said the weekend event brought significant crowds to downtown venues.
Rian Beach, vice president of the Dalles Overground and co-director of the festival, said performances at the Granada Theatre alone drew more than 400 attendees each night. City Manager Matthew Klebes said he was also in attendance and noted large crowds attending the music and art festival.
Hotels reported strong bookings during the event weekend, and organizers plan to present an economic impact report to the city in the coming weeks.
Stand Down for Vets set
The council also issued a proclamation supporting the 2026 Veterans Stand Down, scheduled for May 16 at Lewis and Clark Park, which will connect veterans with housing, medical, employment and education resources.
