Borough holds first hearing on tax increase


August 3, 2017 | View PDF

Residents of the Kenai Peninsula Borough got their first chance to offer opinions on a proposed bed tax increase on August 1, when the KP Borough Assembly staged the first of two planned public hearings regarding the proposal.

The assembly is seeking to place the increased temporary lodgings sales tax proposition on the October ballot. Under the proposal introduced by Mayor Mike Navarre, the borough seeks to charge up to 8 percent tax on all short-term lodging for less than 30 days. The proposal also allows cities such as Seward to opt out of collecting up to 4 percent of the tax increase if they already have a similar sales tax in place.

Navarre said the borough needs the additional revenue to stabilize its fund balance. The borough recently borrowed about $4 million from its fund balance.

According to Navarre, the 8 percent tax would apply to all lodging facilities outside the cities, with the exception of RV parking spaces.

The assembly will hold another public hearing on August 15.


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