Businesses Debates Over Bed Tax

There is an ongoing discussion between the chambers of commerce and the business owners as to the fees that tourists should be paying when it comes to booking a hotel room.

The Board of Directors of CVB or the Mat-Su Convention and Visitors Bureau is now proposing that the transient accommodations tax or what is more popularly called as bed tax should be increased. This increase in the current bed tax is a solution to the funding problem for the finishing phase of the Mat-Su Valley Gateway Visitors Center. This current construction is estimated to be $5.8 million in total and in its final construction phase.

As of the moment, the borough is receiving a bed tax of 5 per cent. This means that for a hotel room that is booked at $100, the borough should have $5 as the revenue from the bed tax imposed. A voting occurred last November 16 in order for the CVB board to have the power to increase the bed tax from 5 per cent to 8 per cent. With this proposal, a debate was started among the local tourism business regarding the effect it will cause.

If the increase is pushed through, the bureau will have a considerable amount of investment coming from the bed tax. According to a voting done by the borough last November 3, the sale of the property will be given to the project amounting to $1.2 million. This amount was given by the Board of Directors. The borough has a previous acquisition of Homestead RV Park which amounted to $1 million, a property that used to belong to Matanuska Electric Association. The design contract of their new construction has been given to Wolf Architecture with a contract price of $1.2 million.

With these data, it shows that the borough has already funneled $3.6 million of its money for new facility. As for the bed tax, the discussion regarding the increase is still on its early phases.

If you are in Australia, worry no more about bed tax and buy your own king single bed