The resort and lodging industry voiced opposition to a proposed increase in Deschutes County’s overnight lodging tax on Wednesday, saying the move could hurt them in the slowing economy.

County staff have talked about increasing the 7 percent tax for a year in order to fund road projects. The transient lodging tax is a percentage of the gross receipts that overnight lodging operators take in, although that tax is often passed on to guests of the resorts or hotels.

For their part, the Deschutes County Commission and County Administrator Dave Kanner argued at a meeting Wednesday that the county would use the tax revenues to maintain county roads heavily used by tourists. The county has estimated that the increase would raise $900,000 per year, and Kanner has said that incorporated areas within Deschutes County already have a 9 percent lodging tax.

An Oregon law requires 70 percent of any lodging tax increase to be used for tourism promotion or tourism-related activities, however, and members of the resort industry argued that roads affected by tourism would not fit under those categories.

J. Gregg Mindt, president of the Oregon Lodging Association, said at Wednesday’s meeting that an increase in the tax could hurt the lodging industry in Deschutes County at a time when occupancy rates are stagnant.

Representatives of the destination resorts and vacation rental agencies who attended the meeting said they had promised Mindt they would let him do the talking, but as the discussion unfolded they voiced their own thoughts on the proposed tax increase.

Larry Browning, president and owner of Discover Sunriver Vacation Rentals, said his company manages approximately $80 million worth of property, and Deschutes County should consider the property tax contributions of his clients.

“What I haven’t heard come up is the contribution of destination resorts, and even out-of-state destination resort owners,” Browning said.

He is already laying off five employees this month, and he said a lodging tax increase would hurt his business.

“Deschutes County is blessed by having all these destination resorts, and all the money coming in from outside the county,” Browning said.

Jim Kinney, general manager of Seventh Mountain Resort, also said the tax hike would come at a bad time for the economy.

“It’s a tough time right now, and we’re all worried about our businesses as well,” Kinney said.

Deschutes County Commissioners Mike Daly, Dennis Luke and Tammy Melton closely questioned the resort industry members about whether increased county services to the resorts, such as law enforcement, could be considered promoting tourism.

Kanner said he came up with the idea of increasing the transient lodging tax a year ago with Road Department Director Tom Blust when county staff realized they would probably lose federal timber payments.

“Tom Blust and I put our heads together last February, when it became painfully evident that the timber fees would go away,” Kanner said.

One of the ideas the two men came up with was increasing the transient lodging tax from 7 percent to 9 percent, and dedicating the increase to roads that they believe are used as tourist facilities.

For Deschutes County, the tax increase is attractive for a couple of reasons: It is already in place, so there would be no cost to set it up, and it would bring in more revenue that other options under consideration.

Deschutes County received $2.8 million in timber payments over the past year.

The commissioners did not make a decision about the tax increase on Wednesday, and Kanner said it is now up to the commission whether they continue forward with the idea.