Could you explain the Hotel/Motel Tax and the Transient Room Tax?

Lodging taxes are imposed differently from one jurisdiction to another. In Pendleton 8% of the rate is charged to folks renting a motel/hotel room or an RV parking space. This is the TRT.  Of the funds collected each quarter by the properties, city ordinance dictates that 14% goes to the Chamber specifically to promote and market Pendleton, 48% goes to the convention center, and 35% stays in the city’s general fund. The remaining 1.75% is set aside to fund public art projects and that portion amounts to about $11,000 per year.  Hotels keep 7% of the funds they collect as payment for the time and effort to collect and report the TRT.  Total receipts anticipated this year are $785,000.

The TPA is a separate item on invoices and is $1.50 per rented room night and fifty-cents per RV parking space rented per night. If a guest stays over 30 days, the assessment is discontinued. Sixty percent of the total tax collected is sent to the Pendleton Chamber of Commerce. The Pendleton Chamber of Commerce promotes the community with TPA collections through their Travel Pendleton Committee. The mission of the Travel Pendleton Committee is to promote, market and sell Pendleton as a destination to increase overnight stays. The remaining 40% of the TPA funds to to the Pendleton Convention Center for capital improvements. $200,000 is expected to be collected this year from the TPA.

The total anticipated revenue for 2009 for both TPA and TRT is $985,000. These funds are returned to the community through tourism promotion activities (advertising, marketing, publications, recruiting and hosting conventions, conferences, meetings, and sporting events) and by keeping the Visitor Center an effective ‘front door’ for Pendleton. These programs encourage more people to visit Pendleton, and stay a little longer.