Oregon Restaurant and Lodging Assn. v. City of Bend

Under ORS 320.350, a local government “may not decrease the percentage of total local transient lodging tax revenues that are actually expended to fund tourism promotion or tourism-related facilities on or after July 2, 2003.”

Petitioner, the City of Bend, adopted an ordinance that amended its local transient lodging tax revenues, decreasing the percentage of tax revenues expended to fund tourism promotion from 35.4 to 31.2 percent.  Respondents argued that their “legally cognizable interests” would be harmed by the reduction in funds for tourism, and accordingly, sought declaratory, injunctive and equitable relief.  At trial, the court held that the ordinance violated ORS 320.350, granting Respondents’ motion for summary judgment and denying Petitioner’s cross motion.

On appeal, Petitioner argued that because the ordinance complies with ORS 320.350, the trial court erred. The court found that Respondents’ allegations were sufficient and that decreasing the percentage of total local transient lodging tax revenues dedicated to tourism promotion violates the plain text of ORS 320.350(3).

Affirmed.