The Anchorage Assembly convened for a work session on agenda item AO 2025-97, focusing on a proposed charter amendment to authorize a 5% tax on short-term rentals (STRs). Sponsors, including Members Rolland and Constant, presented the initiative as a targeted measure to generate $4-5 million annually for housing development and infrastructure, explicitly stating that the proposal is not designed to reduce the number of existing short-term rentals. The session featured deliberation on the tax's economic impact compared to resort communities, flexibility in fund administration, and the scope of excluded uses.
We're getting started. Good afternoon, everybody. Welcome. Um, today we're gathered for work session on AO 2025-97, an ordinance of the Anchorage Assembly submitting to the qualified voters of municipality vancage ballot proposition amending the homework charter to authorize tax on short-term rentals. We'll start with that's 2025-97. We'll start with introductions. Mr. Gricker. Jared Gerker. Anna Browning. Christopher Constant. Daniel Bulland. On the phone, we have uh Mr. Martinez. President, thank you. Thank you, Mr. Myers. Yes, thanks, Chair. Thank you. Anyone else on the phone? No. Okay. Joined by council. Quiet City Hall. We might see some other folks wander in. Parking is a bit of a trick with AFN. So today again we're here for work session to discuss a charter amendment proposal drafted by myself and Mr. Vaughn. Mr. Rollin, you want to start? Sure. Yeah. So we have two documents that members may find helpful. One is that some summary of economic effects. And so folks can see some of the projections made by the administration. And in particular, looking at years 27 through 30, about four to five million dollars would be the annual projected revenue via this 5% short-term rental tax. So take a look at that and you have a moment if you haven't already. So we looked at some of the sort of resort communities because you know similarities to Girdwood, for instance. And so you you can see that they have their underlying room or lodging tax. Some of them have an additional short-term rental tax, and then some of them also have sales taxes. And then the aggregate is in that right column. So you know, looking at a a place like Carbondale, Colorado, for instance, um, that has a population of 6,000. That's uh sort of a Colorado resort town. They have a lodging tax of 2%, which is less than our 12%. However, they also have a 6% um an additional tax equal to 6% of the gross rental price paid by any customer of any short-term rental. Um and then they also have an 8.4% minimum combined sales tax rate, um, bringing their aggregate tax rate to 16.4%. Um you could also look further down at a place like um, let's see. Let's look at maybe Reno, Nevada. Um they have a 13% um or 13.5%, depending on which tax tax district you are in, based on their on their room or lodging tax. Um, they don't have a short-term rental tax, um, but however, they do have a permit that's required.