Every time someone checks into a motel room in Hermiston, they fork over a little extra in the form of a transient room tax. Over the course of a year, those taxes add up to several hundred thousand dollars.
But who gets that money and what do they do with it? Hermiston Finance Director Amy Palmer recently broke it all down for the city council and the public.
The motel operator keeps 5 percent, and the rest goes to the city to pay for programs, services, the aquatic center and more. A total of 37.5 percent of what the city retains was earmarked initially for construction of the Hermiston Family Aquatic Center and then the retirement of the bonds. The remaining 62.5 percent is broken down into four categories:
1) 45 percent of the remaining 62.5 percent goes to improve, maintain and operate the Hermiston Conference Center
2) 15 percent funds recreation-related activities, as well as park improvements
3) 25 percent offsets the cost of programs such as senior tax service, economic development, street maintenance and similar programs
4) 15 percent goes to parks and recreation development
For example, if the city receives $100 in transient room tax, 37.5 percent or $37.50 goes to pay off the pool bonds. Of the remaining $62.50, 45 percent of it or $28.13 goes to support the Hermiston Conference Center, 15 percent or $9.37 will pay for recreation programs and park improvements, 25 percent or $15.63 will support the taxi program, economic development and street maintenance and similar programs, and the remaining 15 percent or $9.37 goes to parks and recreation development.
During the 2012-13 fiscal year, the city received $391,551 in transient room taxes. So, using those same percentages, 37.5 percent or $146,831 went to pay off pool bonds. Forty-five percent of the remaining $244,720 or $110,124 went to the Hermiston Conference Center, 15 percent or $36,708 went to recreation activities and park improvements, 25 percent or $61,180 went to the taxi program, economic development and street maintenance, and the other 15 percent or $36,708 went to parks and recreation development.
So, the next time someone checks into a motel room in Hermiston, they’ll be helping to support the aquatic center, conference center, parks and recreation programs, taxi service and economic development – whether they’re aware of it or not.
Palmer’s entire breakdown of the transient room tax allocation can be found online in the most recent city council agenda packet on page 16.
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