The Soldotna City Council passed a lodging tax in December 2023, and visitors will soon begin paying that charge. The 4% lodging tax goes into effect on Jan. 1, 2025, and all lodging operators in Soldotna will need to register to collect the tax prior to that date.
“[Lodging taxes] will be paid by visitors to our community, and the funds collected will be used to boost our local economy and promote future travel to this region,” said Soldotna Chamber of Commerce Board President Chuck Winters. “The tax applies to all stays that are less than 30 continuous days at hotels, motels, Inns, bed and breakfasts lodges, VRBOs, Air BNBs, and other peer-to-peer rentals in Soldotna.”
When the tax was passed by the Soldotna City Council, the primary intent of the “bed tax” was to serve as an economic boon to the region by placing lodging tax revenue into a “Tourism Enhancement Fund.” Proceeds from the Fund will be distributed at the city council’s discretion to various tourist-related establishments and programs in the City of Soldotna, including the Soldotna Regional Sports Complex, the Soldotna Field House, and Soldotna Creek Park.
The bed tax was a divisive issue when it was passed, with one council member and several members of the community voicing concerns about the necessity of such a move by the city. Ultimately, however, the tax ordinance was implemented with ease by a 5-1 council vote. Councilman Dave Carey was the lone “No” vote.
As for the implementation of the new levy, lodging operators in Soldotna will need to apply for a Lodging Tax Certificate of Registration before this new tax goes into effect.
Visit www.soldotna.org/lodgingtax to learn more about Soldotna’s lodging tax and find resources to help navigate these new requirements.
