Keizer city officials are considering raising the transient occupancy tax from 6% to 10% for guests staying at the Best Western Premier, Holiday Inn Express, Fairfield Inn, and short-term rentals including Airbnbs. The city anticipates generating $350,000 from the current tax in fiscal year 2026, with an additional $236,000 annually if the increase is approved.
As an alternative, city leaders are exploring the formation of a Tourism Promotion Area, which would let participating hotels collectively set a fee to fund tourism marketing. Keizer hotels could join the existing Salem Tourism Promotion Area or establish a separate local zone, allowing hotel
operators influence over how the funds are used.
Revenue collected through the proposed tax or tourism area would primarily finance improvements at Keizer Little League Park, including installing artificial turf and lighting. City Manager Adam Brown said these upgrades would enhance field usability and allow higher rental rates, potentially attracting more overnight visitors.
City Attorney Joseph Lindsay advised that any tax increase requires voter approval because the city charter lacks clear guidance on raising lodging taxes. The current 6% tax was instituted in 1998 following a public hearing. Changes to Oregon law effective January 2027 will also allow local governments
greater flexibility in spending lodging tax proceeds.
Hotel representatives and organizations including Travel Salem and the Oregon Restaurant and Lodging Association have objected to the tax hike, citing insufficient input from hoteliers. Angie Villery, CEO of Travel Salem, emphasized that hotels prefer the Tourism Promotion Area model since tax increases eliminate their ability to influence spending decisions. Villery said two of the three Keizer hotels have expressed interest in joining Salem’s existing promotion area depending on its value.
Visitors staying at Keizer hotels and short-term rentals could face higher charges if the transient occupancy tax rises. Gary Perston, manager of
Fairfield Inn, said the hotel is open to joining Salem’s Tourism Promotion Area and hopes additional funds boost overnight stays. He called for transparency in investing these funds to benefit both Keizer and Salem.
Angie Villery stated, “would no longer have choice, or opportunity to have a say in how those funds would be spent.” She added, “I think that it’s a question about process and ensuring that the right stakeholders are at the table.” Villery also noted, “In this case, it’s appropriate, more than appropriate, to have the hoteliers at the table for any discussion around (the tax increase),
anything that would impact their business.” Finally, she said Travel Salem has “presented the concept to them, and ultimately it’s their choice whether they want to form one at all.”
Keizer’s participation in a tourism promotion area would integrate it within a regional effort covering Marion and Polk counties, with funds managed by a hotel committee and Salem acting as fiscal agent. City officials have engaged hotel representatives since early 2026 to discuss funding mechanisms for ball park improvements and tourism promotion.
