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Aleknagik tax on rent package plans approved

BBNC

Aleknagik voters approved a new tax ordinance that makes lodge packages subject to the 9% bed/hotel tax.

Aleknagik voters approved a new tax ordinance in a special election Tuesday. The ordinance changes the terms of the nine percent bed/hotel tax to include rent package plans at lodges, bed and breakfasts and hotels.

“Rent package plan” refers to the whole bundle of services a lodge provides to guests for a flat per-week fee. That includes food, drink, guided hunting and fishing, boat and plane rides, and any other services the lodge offers as part of their package.

The entire cost of that package will now be subject to the bed/hotel tax rate, according to the city clerk Jeri Alakayak. That rate was raised from five to nine percent in a previous vote.

Alakayak says this ordinance does not affect Aleknagik’s sales tax, which will remain at five percent. The new rule simply clarifies that service packages provided by lodges and hotels will be charged the bed/hotel tax rate and NOT the sales tax.

The five percent sales tax still applies to items like souvenirs, groceries, and fuel purchased in Aleknagik.

The city is expected to certify the election results at a meeting on April 14. The revisions to the ordinance will go into effect 30 days later.