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Following ballot measure vote, bed tax rate to increase Jan. 1

December 9, 2019 – FYI, News

In the October 1, 2019 City and Borough of Juneau Regular Municipal Election, voters approved an increase to the CBJ hotel/motel tax, raising the tax rate from 7% to 9%. This increase will become effective January 1, 2020.

The two percent increase is temporary, extending to December 31, 2034. According to the approved ballot measure, it is the intent of the Assembly to use the additional revenue to fund capital improvements for Centennial Hall, or to help pay for general obligation debt service related to Centennial Hall.

The increased hotel/motel tax of 9% will be collected in addition to the CBJ Sales Tax of 5% for a total tax collected of 14%. Hotel/motel operators – including small scale, short-term vacation rental operators – are responsible for the collection of both the 9% bed tax and the 5% sales tax. If you are an operator that advertises through hosting platforms such as Airbnb and Vrbo, be advised that both platforms now allow hosts to set the appropriate tax rates to charge and collect the total tax of 14% at the time of booking.

For more information, contact the Sales Tax Office at 586-5265 or [email protected].