The city will impose an 8 percent bed tax for at least five years, then review whether to levy the full 9 percent tax. The beauty of the tax, supporters say, is that Medford residents won t be asked to pay it. It applies only to visitors staying less than 27 days at local hotels, motels and inns. The increase, however, could hurt some of the city s smaller 32 hotels and motels. According to Harry Papel, owner of the Economy Inn of Medford and two smaller motels, the tax increase would cut into his bottom line.
People already complain because they say Oregon doesn t have a sales tax.
The lodging tax is not a sales tax, but Papel said some guests are upset when asked to pay an additional 6 percent on their room bill. Papel said he may have to lower his rates to offset the higher tax. The tax increase, however, is expected to have little effect on lodging costs overall, said Julie Petretto, VCB executive director. Petretto said most local hoteliers see the benefit of the tax increase and have thrown their support behind the measure. With the money raised, the city plans to build the biggest and nicest all-purpose sports park in Southern Oregon.