Borough Assembly rejects putting bed tax increase on ballot

After an hour of testimony and deliberation last night, the Mat-Su Borough Assembly voted narrowly to defeat a measure that would have put a bed tax increase on October’s borough ballot.

Bed tax is charged to visitors renting nightly lodgings, and one way to extract tax dollars from tourists. Currently, the borough’s bed tax is five percent.

The proposal, which came from the Mat-Su Convention and Visitors Bureau board of directors, would have asked voters whether to increase the borough’s bed tax by three percent in order to fund tourism infrastructure.

Most members of the public who spoke against the proposal were from the Upper Valley, including the general managers of the Talkeetna Alaskan Lodge and the McKinley Princess Wilderness Lodge, two of the largest single payers of bed tax in the borough. Supporters of putting the tax on the ballot were largely from the Core Area of the valley. Talkeetna Chamber of Commerce President Trevor Walter testified at the meeting, and says that only one member of the chamber responded to an organizational poll saying they favored an increase in bed tax.

On the assembly, opposition was voiced on the grounds of lack of a plan as to how the additional revenue, estimated at around $700,000, would ultimately be spent.

Even if the Assembly had passed the ordinance, a public vote would have taken place before the bed tax increase could have taken effect.