Explanatory Statement:



This measure creates a six percent tax on the amount paid for transient lodging and
recreational camp and RV sites in unincorporated Marion County. The tax will not be
collected inside cities unless a city specifically asks to be included. The tax will
fund tourism development and promotion under a regional tourism plan
commenced in 1991 for Marion and Polk Counties and the Salem Convention
and Visitors Association (SCVA). Presently this plan is implemented by
the VISIT Group (Valley Inter-cooperative Strategies to Increase Tourism), a
cooperative effort of community groups, businesses, government and individuals
whose purpose is promoting the two-county region as a viable visitor destination.

Funding for these activities from the two counties has come from lottery economic
development funds. SCVA contributes transient lodging tax funds generated within
the city of Salem.

Using these funds, the VISIT Group has developed a travelers information radio station,
regional promotional brochures, bed and breakfast directory, heritage sites and tours
directory and has promoted economic development projects relating to tourism in the
North Santiam Canyon and other communities.

Although not required, in Marion County the proposed six percent transient occupancy
tax will presently replace the county's contribution of lottery funds to support VISIT's
activities. The tax would raise an estimated $166,000 annually. A minimum of 80% of
the net amount collected will be dedicated to tourism promotion and development; a
maximum of 20% will be used for county park infrastructure development.

Overnight renters of hotels, motels, inns and similar facilities will pay the tax for stays
of less than 30 days. Recreational campsite and recreational vehicle park occupants
will pay the tax for their entire stay. The management of each facility will be allowed
to keep five percent of the tax it collects to cover the cost of remittance to the county.
Both privately and publicly owned facilities, including state parks, will collect the tax.
Non-profit overnight facilities used for non-profit purposes, private homes, medical
facilities and daily rental of less than $5.00 are exempt.

The county board of commissioners will designate a tax administrator who will
be responsible for collecting the tax from lodging and recreational camping facilities.
The tax administrator may grant extensions for payment, impose interest and penalties
against lodging facilities for delinquent payment, nonpayment and fraud, record liens
against the personal property of lodging facilities that fail to remit taxes, bring collection
actions, and make refunds. Any person aggrieved by any action of the tax administrator
may appeal to the board of commissioners.

This tax will become effective on July 1, 1998.

Submitted by:
Randall Franke, Chair
Marion County Board of Commissioners



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