Explanatory Statement:

The City Charter permits the City Council to levy a six percent (6%) hotel and motel (transient lodging) tax. This tax is imposed on the occupants of hotel or motel rooms, including bed and breakfast lodging, RV parks, and campgrounds. Approval of this measure would permit the City Council to increase the tax to nine percent (9%).

The City Charter provides that revenues from the transient occupancy tax must be used for:

(1) Enhancement and beautification of vehicular and pedestrian entrance-ways to the city;

(2) Urban beautification generally;

(3) Improvements to or operation of major tourist attraction or cultural facilities;

(4) Activities performed directly by the city or through contracts which promote use of Salem for conventions, conferences, seminars or for general tourism.

The additional funds would be used to repair historic attractions such as Gilbert House, Deepwood Estate, and Bush House. They would also be used for other purposes permitted by the Charter.

Submitted by

Mayor Mike Swaim on behalf of the Salem City Council