A new ordinance was brought to the table during the Soldotna City Council meeting Wednesday, October 23rd.
Introduced and sponsored by Vice Mayor Lisa Parker, this new ordinance would add a 4% tax to all lodging, such as hotels, motels, Airbnb’s, and inns. Unless the rental is specifically exempted from taxation due to a law or the constitution, the tax would be implemented.
This tax is in addition to the general sales tax of the city.
Any Soldotna businesses that offer overnight stays would be required to get a certificate of registration from the city. If owners do not obtain the registration, they will receive a $250 fine. Anyone staying overnight due to government purposes will not be asked to pay the fine.
According to Parker, all the city improvements over the past 10 years have added a 42% increase in Soldotna tourism taxable sales. She describes it as an “economic hub” for the peninsula and it will draw in even more visitors through projects like the Soldotna Field House.
All of the revenue generated from the proposed taxed would be used to promote city tourism. Parker said that the City of Soldotna received $6.1 million in sales taxes revenues from lodging operations in the past year.
City council members are not set to vote on this ordinance until mid-December. The council has already received letters from two of Soldotna largest lodgers, saying they are against the proposed tax.
