A new Tourism Industry Working Group was established Tuesday by the Kenai Peninsula Borough Assembly to explore the idea of establishing a bed tax in the borough.
A resolution sponsored by Kenai Peninsula Borough Mayor Peter Micciche and assembly member Kelly Cooper was considered during the group’s meeting on Sept. 3. The resolution describes the Tourism Industry Working Group as a “collaborative approach” between the borough, cities and the tourism industry to evaluate the issue of a “bed tax,” or a tax levied against short-term rentals.
The move comes after another resolution was considered in June that would have added a question to the October ballot asking borough voters whether the borough should levy such a tax. After roughly 80 minutes of testimony largely in opposition and largely by representatives of Kenai Peninsula lodging operations, the resolution was tabled.
The resolution approved by the assembly on Tuesday says that the group will evaluate “tourism benefits and impacts” on the borough; discussing options to ensure “visitors are paying their fair share for the services they use; and assessing the effects of a potential bed tax.
The resolution describes a group of seven voting members and three non-voting members. Voting members will be appointed by the borough mayor and approved by the assembly, including three tourism industry representatives and four community members. The non-voting members are the borough mayor and two assembly members appointed by the assembly president.
Approval of appointees by the assembly was added by a successful amendment by Assembly Vice President Tyson Cox, a sponsor of the original bed tax resolution. The group will also, per Cox’s amendment, produce a final written report for the assembly.
“Appropriate public notice” will be given, the resolution says, by Sept. 17 to describe how borough residents can apply to fill either the tourism industry or community member seats.
Cox’s amendment and the resolution establishing the group were both passed by the assembly unanimously and with little discussion.
The only discussion by the assembly on Tuesday centered on how to appropriately notice the opportunity to the public to be part of the group, with member Cindy Ecklund citing most specifically the eastern peninsula where there is no longer a local newspaper in Seward.
Micciche said the borough earlier this year moved its public noticing away from newspapers and instead largely notices online. Printed copies of the notice will also be provided to assembly members to post on community bulletin boards.
A full recording of the meeting and the text of the resolution is available at kpb.legistar.com. The language of Cox’s amendment hasn’t been added as of Wednesday evening but will be available there as well.
This story was corrected on Friday, Sept. 6. A previous version incorrectly attributed details of the original resolution to the amendment by Cox.
Reach reporter Jake Dye at jacob.dye@peninsulaclarion.com.
