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City of Bethel

City of Bethel is the municipal government that serves Bethel, Alaska, the hub city of the Yukon-Kuskokwim Delta. Its city council sets ordinances and budgets, and its commissions oversee the port, taxi fares and public safety.

Cover image for article: Bethel proposals would forgive uncollected hotel sales tax and cut the 12% rate to 6%

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Bethel proposals would forgive uncollected hotel sales tax and cut the 12% rate to 6%

by Walter AlaskaNews(10h ago)From
2 min readBethel, Alaska

Bethel City Manager Lori Strickler has proposed forgiving a 12% sales tax that hotels and short-term rentals never collected from guests. A second ordinance she sponsored would cut that tax to 6%. Both were on the City Council's Nov. 10 consent agenda for introduction, and a public hearing is set for Dec. 15.

City code puts two separate 12% taxes on lodging: a sales tax paid by the guest and a business tax on the operator's gross receipts from renting rooms. The forgiveness ordinance says the city "recently learned" that operators have been paying the business tax but never collecting the sales tax. The rate-cut ordinance says the city has historically collected only the business tax.

City Attorney Libby Bakalar concluded in a Nov. 3 memo to Strickler that both taxes apply, though she wrote that "the code could be clearer on this point." In her example, a guest who books three nights at $300 a night owes $108 in sales tax, which the hotel holds for the city. "That money never belongs to the operator," she wrote.

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About City of Bethel

City of Bethel

Photo: Andrea Pokrzywinski via Wikimedia Commons · Photo source · CC BY 2.0

cityofbethel.org ↗Bethel, AK 99559, USA

The City of Bethel is the municipal government that serves Bethel, the hub city of the Yukon-Kuskokwim Delta. Its city council passes ordinances and budgets and chooses the mayor from among its members, and its commissions oversee the port, taxi fares, planning and public safety.

The city runs piped and hauled water and sewer service, the landfill, police and firefighters, and facilities such as its gym and fitness center. Water quality and sewage leaks are recurring concerns, and the city holds hearings to abate nuisance properties that sit empty or damaged. The council also regulates taxis, collects taxes and leases city land.

The Port of Bethel's dock on the Kuskokwim River is the freight lifeline for the city and the roadless region around it. State loans and grants pay for much of the city's water system work.

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