Your Taxes at Work
The City relies on two key taxes that support our local community: The Food & Beverage Tax (F&B) and the Transient Lodging Tax (TLT). These taxes play an essential role in funding capital improvement projects, supporting local businesses and benefiting community programs.
Understanding how Ashland’s Food & Beverage Tax is Used
Ashland’s 5-percent Food and Beverage (F&B) Tax applies to prepared foods and non-alcoholic beverages sold at restaurants, grocery store delis, caterers and coffee shops, including takeout and delivery orders. Businesses retain five percent of the tax collected to cover their accounting expenses, and two percent stays in the City’s General Fund specifically for the administration of the tax.
The remaining revenues are committed by City policy and Ashland Municipal Code (AMC) to capital improvement projects. These funds cannot be transferred to the General Fund or used for other purposes without formal action by the City Council, through the same formal process used to commit the funds in the first place.
Here’s how the tax revenue is allocated:
- 73 percent supports street repair, rehabilitation and maintenance, including paying debt service on loans taken out for projects under the City of Ashland's Pavement Management Program.
- 25 percent goes directly to Ashland Parks and Recreation, supporting the development and rehabilitation of local parks and open spaces.
These are legally committed funds with designated purposes, and any change in their use would require a formal vote by City Council to amend the existing commitments.
This tax will expire on December 31, 2030, unless extended by Ashland voters.
The F&B tax was approved by voters in 1993 to help acquire more land for Parks and Recreation. In 2009, voters extended the tax's sunset date to December 31, 2030.
This 5 percent tax applies to prepared foods and non-alcoholic beverages sold at restaurants, grocery store delis, caterers and coffee shops in Ashland. Businesses retain 5 percent of the collected tax to cover their accounting expenses.
The funds collected through the F&B Tax support essential city projects, such as street repairs, land acquisition and capital improvements. Notably, 25 percent of these funds go directly to Parks and Recreation to support the development and rehabilitation of local parks and open spaces.
The City collects roughly $3 million in F&B Tax per year.
View the Food & Beverage Tax over time via our Interactive Online Budget.
Street Reconstruction (administration, design and construction)
Projects paid to date over the past 10 years:
- Hersey Street, $3.86 Million
- Ashland Street, $4.71 Million
Future projects include:
- North Mountain Ave (2025)
- Oak St (2026)
- Siskiyou Blvd (2027)
Updated October 2025
Projects paid to date over the past 10 years:
- Daniel Meyer Memorial Pool & Rebuild, $166,789
- East Main Park Development, $317,004
- Garfield Park Splash Pad, $864,482
- Hunter Park Playground, $67,219
- Hunter Park Tennis Court Rehabilitation, $19,757**
- Hunter Park Tennis Court Resurfacing, $97,743
- Ice Rink Chiller Replacement, $248,652
- Irrigation (alternative sources), $22,133
- Irrigation Central Controller, $262,095
- Japanese Garden in Lithia Park, $1.9 Million*
- Kestrel Pedestrian Bridge, $42,384*
- Lithia Park Improvements, $28,500
- Lithia Park Master Plan, $250,283
- North Mountain Park Culvert Failure, $152,104
- North Mountain Park Nature Play Area, $27,725.00*
- Oak Knoll Golf Course / Clubhouse Improvements, $85,883
- Oak Knoll Golf Course Irrigation & Drainage, $93,166
- Parks (all inclusive) Master Plans, $45,756**
- Playground Slide at Briscoe Park, $18,240
Please note: The projects listed above include only those with payouts of approximately $20K or more.
*F&B and grant funded
** Projects to be completed within the next two years
Updated October 2025
The funds generated by the TLT are allocated to local initiatives, including grants for non-profits and support for local businesses. These efforts help strengthen Ashland's economy, support tourism and improve local infrastructure.
Here's a breakdown of how it works:
The current TLT rate is 10 percent on short-term lodging.
30.96% of the TLT revenue is dedicated to tourism promotion or tourism-related facilities.
69.04% is allocated to the General Fund for the City of Ashland.
Allocation is based on the grandfathering provisions of HB (House bill) 2267, using Ashland’s pre-2003 formula.
The additional 3% added to the TLT rate after 2003 (2% in 2008 and 1% in 2018) is subject to the 70% tourism allocation requirement.
Ashland’s TLT was first adopted in the early 1990s as a means to support local services and community programs through revenue generated by visitors staying in temporary or short-term accommodations.
Since its adoption, the TLT rate has been adjusted over time to better meet the evolving needs of the community. Notably, increases were made in 2008 (by 2%) and again in 2018 (by 1%), bringing the total tax rate to its current level of 10%.
In 2003, the Oregon Legislature passed House Bill (HB) 2267, which required that 70% of TLT revenues be used for tourism promotion or tourism-related facilities. However, Ashland was grandfathered in under the new law because it already had a TLT in place before the legislation took effect in July 2003.
Under the grandfather clause, cities like Ashland could continue to allocate funds based on their existing formulas, provided they applied the 70% rule only to new increases in the tax rate after HB 2267. At the time, Ashland was allocating 14% of a 7% tax to tourism-related uses. Therefore, under the law, Ashland's obligation to dedicate TLT revenue to tourism is based on that initial amount plus the tourism portion of any future increases.
This framework has resulted in Ashland currently allocating approximately 30.96% of TLT revenues to tourism-related purposes, while the remaining 69.04% goes to the General Fund to support other city services.
The City collects roughly $3 million in TLT per year.
View the Transient Lodging Tax dollars over time via our Interactive Online Budget.
Tourism Grants FY2024
| Travel Ashland | $517,000.00 |
| Beautification Grants to local businesses | $187,678.00 |
| Downtown / Ashland St Trashcans | $60,202.75 |
| Peak Season Downtown Beautification | $65,600.00 |
| Historic Medallions | $2,716.67 |
Total FY2024 | $833,197.42 |
Quote from a local business owner...
"Thank you for your help, the grant was the incentive I needed to rework the entire property and make it all work together. It also gave me the opportunity to address some fire safety and drainage/ flooding control issues, I have been worried about. I have had a lot of people comment on the changes and my guests have truly enjoying the changes. Thank you again for the opportunity." Before and after pictures.
Sincerely,
Mark and Elizabeth Schoenleber
Event Partnership Grants
This program was launched on October 17, 2024. The goal of the program is to increase out-of-town visitors to Ashland by increasing attendance to and supporting the organization of local events. Learn more.
As of October 29, $36,850 in grant funds have been dispersed to support the following local events:
- SOU (Southern Oregon University) Indigenous Peoples’ Day
- SOPride (Southern Oregon Pride)
- Afterburnt by Southern Oregon Burners
- Ashland Flute Gathering
- Independent Media Week
- Concerts at the Historic Ashland Armory
- Seasonal Processions in Lithia Park
- Mt Ashland Hill Climb
- Websters Spring 2025 Retreat
Updated February 2025
Both taxes contribute to a variety of community-focused projects, from Public Works to tourism development. Thank you for being a vital part of our vibrant community!
View business license and tax regulations for business owners, how to pay your F&B or TLT, view due dates and FAQs through our Finance Department.
Property tax information can be found on the Jackson County website.