Kenai borough to consider peninsula bed tax

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by Your Alaska Link News Team

A Kenai Peninsula Borough Assembly member has proposed a 4 percent bed tax.

The measure by Bill Smith would need approval by voters, who rejected a bed tax in 2005.

Kenai Peninsula Tourism Marketing Council director Shanon Hamrick says a 4 percent bed tax is projected to bring in $2.4 million.

The ordinance calls for $1.4 million of the revenue to go to peninsula cities, nearly $800,000 to borough marketing and about $265,000 to borough schools.

Smith tells the reporters that he's trying to keep pressure off the borough's property tax rate.

Homer and Seldovia have sales taxes of 7.5 percent. A 4 percent bed tax would mean an 11.5 percent tax on rooms there.

That's under the 12 percent rates in Anchorage, Juneau and Sitka.