City Council Outlines Intent for Proposed Lodging Tax Increase

Published on October 02, 2025

The Medford City Council on Wednesday approved a resolution outlining how it intends to use revenue from a proposed increase to the City’s transient lodging tax (TLT), should voters approve the measure in the Nov. 2025 special election.

According to the resolution:

• Funds would be dedicated to a conference center or a functionally equivalent facility. The Council specified that the money will not be used for a stadium, hotel, or similar developments.
• The Council currently plans to raise the TLT rate by only 1%, increasing it from 11% to 12%. If further funding is needed, an increase to the full 13% would only be considered after:
  
  • City representatives meet with local hotel industry stakeholders.
  • Financial data shows the additional funds are necessary to complete the project.
• The Council also expressed its intent to repeal the tax increase once the facility is completed and any related debt is fully paid off.

In July, the Council voted to place a measure on the ballot asking voters whether to raise the City’s TLT from 11% to a maximum of 13%. The tax applies to short-term accommodations such as hotel and motel rooms, Airbnbs, and VRBOs. Long-term stays are exempt.

While the measure will ultimately be decided by voters, the resolution adopted this week is meant to clarify how the Council plans to use the additional revenue if the increase is approved. 

City officials emphasized that the resolution is a formal statement of intent and not legally binding. It does not create any legal obligations or guarantees but is meant to provide transparency and guidance ahead of the election.