The Fairbanks North Star Borough’s policy puts hotels outside city limits at a competitive disadvantage, Assemblywoman Nadine Winters said.
“I’m just trying to level the playing field,” she said.
Individuals who rent a room for longer than a month currently enjoy the exemption, Winters said. Companies who rent rooms long-term but rotate the employees who use the rooms pay the full tax, she said, but only outside Fairbanks and North Pole city limits.
Companies that rent hotel rooms long-term in the cities of Fairbanks and North Pole are exempt.
The measure, Ordinance 2010-15, will be introduced at Thursday’s assembly meeting. It’s subject to a vote two weeks later. Winters said Alaska Airlines pointed out the problem.
“Alaska Airlines realized that they are paying bed tax in hotels in the borough, outside the city, and they are not paying it in the city,” Winters said. “If I were Alaska Airlines, I would just move my business to the city.”
The borough stands to lose tens of thousands of dollars by extending the exemption to companies, the assemblywoman said. But the borough is in jeopardy of losing the money anyway, she said, once companies realize they can avoid the tax by moving their business inside city limits.
“We’re going to lose it one way or another,” Winters said.
Alaska Airlines supports the measure. Senior Vice President Bill MacKay said in a written statement, “We support this proposed ordinance as it mirrors what is already in place in many other cities, including the city of Fairbanks. It levels the playing field for employers seeking long-term accommodations for their employees at hotels regardless if the hotel is located inside the city limits or in the borough.”
Contact staff writer Amanda Bohman at 459-7544.
Let's say this bed tax does cost their airline more money and the company would save on being exempt - will we see a trickle down effect with cheaper luggage fees? flight fees? No, probably not.
This also points out that we have been giving the money away to our big investors (marriott, westmark, etc) and charging the littler guy. What a way to promote buisness.
Dont let this fool you though, it is a stepping stone to justify a sales tax. Once the borough has lost money that it counted on when budgeting out for the year ahead they will have a short fall and use that short fall (just like all the others) as a justification that they will need a sales tax.
Nadine, I am glad to say that I did not vote for you. I dont like your follow-along-with-the-states ideas for taxing.
Don’t let ignorance guide you!
Please practice due diligence before you speak/type.
Ugh, no. The business owner DECIDED to do business outside the city limits. And, given the attraction of these locations- quite, scenic, "the Alaska experience"- they can and do charge more, so the "field" is leveled anyway.
Enough with the tax breaks already! ALASKA, we've got to pay our way somehow!
The owners of the "hotels" need to make up their minds if they are in the hotel business or renting apartments, there is a differance.
more SOCIALIST, spreadthewealtharound, trickledown, public-CAN "economics".
SOCIALISM is great, if its for the corps and the big guys!!!!
(but, heaven forbid your grandmother should have health care....)