A sign welcoming people to the City of Soldotna is photographed on May 1, 2019, in Soldotna, Alaska. (Photo by Brian Mazurek/Peninsula Clarion)

A sign welcoming people to the City of Soldotna is photographed on May 1, 2019, in Soldotna, Alaska. (Photo by Brian Mazurek/Peninsula Clarion)

Proposed Soldotna bed tax gets 1st public hearing

The ordinance, brought forward by Soldotna Vice Mayor Lisa Parker, would apply to people making lodging reservations within the city

The Soldotna City Council on Wednesday tweaked the language of a proposed citywide lodging tax such that city revenue generated by the tax would be deposited in a fund designated to promote tourism.

The ordinance, brought forward by Soldotna Vice Mayor Lisa Parker, would apply to people making lodging reservations within the City of Soldotna and would be applicable to all hotels, motels, inns, lodges and short-term rentals, such as Airbnbs and Vrbos. The revenue generated through the tax would be used to promote Soldotna tourism.

Under the ordinance, the city’s lodging establishments would also be required to obtain a certificate of registration from the City of Soldotna, and would be subject to a $250 fine if that registration is not obtained. People staying overnight in Soldotna for government purposes would not be subject to the lodging tax.

ADVERTISEMENT
0 seconds of 0 secondsVolume 0%
Press shift question mark to access a list of keyboard shortcuts
00:00
00:00
00:00
 

In proposing the new lodging tax, sometimes called a bed tax, Parker cited improvements to city amenities, such as the Soldotna Regional Sports Complex and the construction of the Soldotna Field House, that may draw more visitors into the city. A 4% lodging tax would have brought in an additional $243,000 in city revenue during the most recent fiscal year, Parker has said.

Two of Soldotna’s major lodging operations — the Aspen Hotel and the Kenai River Lodge — have already voiced their opposition to the proposed tax, saying that their occupancy rates have been down in recent years and that their industry would be uniquely targeted by the ordinance.

The only person to testify on the proposed tax during Wednesday’s meeting was Joseph Kashi, who said he supports a city bed tax, calling the ordinance “sensible” and “well-written.” Enhancements to city recreation that would be funded with the proposed tax, he said, are needed.

“I think Soldotna’s behind the times in not doing this,” Kashi said. “Most of the major cities or other destinations in Alaska do it.”

Parker successfully amended the legislation on Wednesday to create a new “Tourism Enhancement Fund,” into which city lodging tax revenues would be deposited. The amendment lists the Soldotna Regional Sports Complex, the Soldotna Field House, Soldotna Creek Park and other recreational facilities as being among those lodging tax revenues could be used for.

Council members also approved three other minor amendments to the ordinance, including updating the definition of short-term rentals, adding “tourism enhancement” to the city’s list of special revenue funds and correcting the title of the ordinance.

The Soldotna City Council will hold a second public hearing and vote on the ordinance during its Dec. 13 meeting.

Wednesday’s city council meeting can be streamed on the City of Soldotna’s YouTube channel.

Reach reporter Ashlyn O’Hara at ashlyn.ohara@peninsulaclarion.com.

More in News

University of Alaska President Pat Pitney speaks during a meeting of the UA Board of Regents at Kenai Peninsula College in Soldotna, Alaska, on Feb. 22, 2025. (Jake Dye/Peninsula Clarion)
Pitney: UA, KPC seeing momentum, attendance growth

The university president described KPC as “a leader of the pack” in enrollment growth at the university

University of Alaska Board of Regents Chair Ralph Seekins speaks during a meeting at Kenai Peninsula College in Soldotna, Alaska, on Feb. 22, 2025. (Jake Dye/Peninsula Clarion)
‘Where does this end?’: University of Alaska to strip diversity and inclusivity language from programs, policies

The board was clear during the meeting that they were responding to pressure from the federal government.

U.S. Rep. Nick Begich holds a telephone town hall on Monday, Feb. 17, 2025. (Screenshot from the Facebook page of U.S. Rep. Nick Begich)
Murkowski, Begich host telephone town halls to address constituent concerns

Both events were inaccessible to some, who grew frustrated at technical problems

Rep. Will Stapp, R-Fairbanks, speaks on the House floor on Thursday, May 2, 2024. (Photo by James Brooks/Alaska Beacon)
Education funding bill unexpectedly advances again, nears House floor vote amid affordability concerns

HB 69 clears Finance Committee at first hearing as minority says discussions there are not worthwhile.

The front of the Kenai Police Department as seen on Dec. 10, 2019. (Photo by Brian Mazurek/Peninsula Clarion)
Kenai accepts federal grant for police vests

The funds entirely cover the purchase of three ballistic vests this fiscal year.

Soldotna High School student Ethan Anding asks a question during a Kenai Peninsula Borough School District budget development meeting at Kenai Central High School in Kenai, Alaska, on Wednesday, Feb. 19, 2025. (Jake Dye/Peninsula Clarion)
District discusses $17M deficit at community meeting

More than 100 people gathered in the KCHS auditorium.

Alaska State Troopers logo.
Man found dead near Kasilof roadway on Tuesday

He was found off Pollard Loop Road near Reindeer Lane in the Kasilof area.

Fire Marshal Jeremy Hamilton gives a tour to students during Job Shadow Day at Kenai Fire Department in Kenai, Alaska, on Wednesday, Feb. 19, 2025. (Roddy Craig/Peninsula Clarion)
Kenai students try on careers for Job Shadow Day

Roughly 100 students from Kenai Central High School scattered to more than 30 businesses to get a feel for the workforce.

A 2015 Ford Explorer that was stolen from the Kenai Chamber of Commerce before crashing into a tree near Wells Fargo Bank is loaded onto a tow truck in Kenai, Alaska, on Tuesday, Feb. 18, 2025. (Jake Dye/Peninsula Clarion)
Car stolen, crashed in Kenai

The car was reportedly taken from the Kenai Chamber of Commerce and Visitor Center.

Most Read