Medford expects a "substantial impact" on lodging tax revenue amid COVID-19

Medford braces for "substantial impact" following drop in tax revenue.

Posted: May 22, 2020 5:34 PM
Updated: Oct 1, 2020 9:34 AM

MEDFORD, Ore. – Transient lodging tax (TLT) revenue is going to be one of the hardest hit revenue streams for the City of Medford and that tax funds multiple big budget items.

50% of TLT revenue goes to the city’s general fund, which funds department operations and the general fund grant program.

“That has provided $700,000 that will go towards our local service organizations that are providing essential services to Medford residents,” said Kristina Johnsen, the communications and marketing manager for the City of Medford.

25% of TLT revenue goes to Travel Medford. Another 25% goes to paying the USCCP debt service and paying for new parks and major improvements to current parks.

“We know that it’s going to be a substantial impact,” said Johnsen.

TLT revenue was down about 50% from March of last year. March numbers only give a glimpse at the financial impact Medford could see.

“It’s going to take time to really figure out how we’ve been impacted and how we can move forward,” said Johnsen.

As times goes on and the city gets a clearer image of the financial damage, department directors will weigh in on solutions. The city manager and city council will have the final say on any temporary or permanent changes the City of Medford could see.

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