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Legislature OKs Tourism
Marketing Tax Bill
Whitaker’s HB 24 Resolves Borough-City Tax Authority Conflict

(JUNEAU) - The Senate today passed House Bill 24, sponsored by Rep. Jim Whitaker, opening the door for certain boroughs and cities to fund tourism marketing efforts through bed taxes.

“Tourism is a growing part of our economy, and if we don’t invest in it, or at least give local governing entities the opportunity to invest in it, then it doesn’t meet its growth potential,” Whitaker said.

Previous state law barred a second-class borough that encompasses a first-class city from levying a bed tax to fund destination tourism marketing programs. Such marketing efforts have been effective tools in helping communities build identities and compete more successfully in Alaska’s growing tourism industry, Whitaker said.

HB 24 makes it possible for both the city government and borough government in such cases to contribute a sales tax on hotel rooms, or “bed tax,” to tourism marketing efforts, and will give them an increased range of options to use in funding such programs, he said.

“House Bill 24 simply allows local governments to determine whether or not bed tax revenue can be spent for a tourism marketing effort,” Whitaker said.

The bill moves next to the governor.

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Attachments:

• Sponsor Statement for HB 24
  
• Print Friendly Version
  requires Adobe Acrobat Reader - 1 page(s) - 100 K

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