Keizer city officials are proposing to increase the transient occupancy tax from the current 6% to 10%, targeting the city’s three hotels—the Best Western Premier, Holiday Inn Express, and Fairfield Inn—as well as local short-term rentals including Airbnbs. The city currently collects about $350,000 annually from the existing tax and estimates an additional $236,000 could be generated each year if the increase is approved.
Planned Ballpark Improvements to Drive Revenue
The additional funds are intended to finance upgrades at Keizer Little League Park, specifically the installation of artificial turf and lighting. City Manager Adam Brown stated these enhancements would increase field usability, allowing extended hours and
higher fees for users. He also noted the improvements could attract more sporting events that encourage overnight stays, potentially boosting tourism in Keizer.
Legal Requirements and Voter Approval
City Attorney Joseph Lindsay advised the Keizer City Council that increasing the transient occupancy tax requires voter approval because the city charter does not explicitly permit the council to raise taxes without a public vote. The current 6% tax has been in place since 1998, established after a public hearing. If the council pursues the increase, a ballot measure could appear in the May 2027 election. Councilor Lore Christopher supports amending the charter to allow tax changes
without voter approval, noting the tax applies only to visitors and not Keizer residents.
Concerns from Hotels and Tourism Groups
The proposed tax hike has drawn opposition from hotel operators, Travel Salem, and the Oregon Restaurant and Lodging Association. Their concerns center on the lack of hotel input in the decision to raise taxes. Angie Villery, CEO of Travel Salem, emphasized that an increase would remove hotels’ ability to control how lodging tax funds are spent, unlike a Tourism Promotion Area where hotels collectively determine fee use. Villery called for the inclusion of hotel stakeholders in any discussion affecting their businesses.
Tourism Promotion Area Offers Alternative Funding
An alternative to a direct
tax increase is the establishment of a Tourism Promotion Area, a structure where lodging businesses set fees together and control how the revenue is allocated for tourism marketing. Keizer’s hotels could join the existing Salem Tourism Promotion Area or form their own. The Salem Tourism Promotion Area is managed by a committee of 11 hoteliers, with funds used for marketing across Marion and Polk counties. Participation in such an area can be voluntary and may include hotels, motels, campgrounds, and short-term rentals. The city or local Chamber of Commerce could collect the fees, but a lodging industry committee would decide
on fund use.
Official and Hotel Perspectives
Brown said city officials began exploring tourism promotion options early in 2026 during ballpark management discussions and have consulted Keizer hotels since July. Fairfield Inn Manager Gary Perston expressed willingness to learn more about Salem’s Tourism Promotion Area prior to committing, emphasizing the need for transparent investments that measurably increase overnight stays. Villery said hotels “would no longer have choice, or opportunity to have a say in how those funds would be spent” if subjected to a tax increase rather than a tourism promotion area.
She added, “I think that it’s a question about process and ensuring that the right stakeholders are at the table.”
Next Steps in Decision-Making
The Keizer City Council has agreed to hold a work session on
the transient occupancy tax increase, though no date has been set. Discussions continue between city officials, local hotels, and tourism organizations as the city weighs options to fund community sports infrastructure sustainably. Representatives from Best Western Premier and Holiday Inn Express have not responded to inquiries regarding the proposed tax or tourism promotion area.
