Alaska peninsula hospitality businesses oppose bed tax plan
KENAI, Alaska (AP) - Members of the Alaska hospitality industry have spoken out against a proposed bed tax.
The Peninsula Clarion reported Wednesday that hospitality property operators on the Kenai Peninsula spoke against the plan at a Kenai Peninsula Borough Assembly meeting Tuesday.
Officials in the borough south of Anchorage say the 12% bed tax introduced at a May 7 assembly meeting would exempt temporary lodgings including motels, hotels and bed and breakfast businesses from the general sales tax rate.
Officials say the tax was proposed to close budget shortfalls and would generate more than $1 million in additional revenue in fiscal year 2020 and more than $4 million in the next two fiscal years.
Operators say the ordinance unfairly targets an industry already exempt from the general sales tax.
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