DENALI BOROUGH, ALASKA

ORDINANCE NO. 91‑02

AN ORDINANCE ESTABLISHING A TAX ON THE RENTAL OF

OVERNIGHT ACCOMMODATIONS

Section 1. Classification.

This ordinance is of a general and permanent nature.

Section 2. Severability.

If any provisions of this ordinance or any application thereof to any person or circumstances is held invalid, the remainder of this ordinance and the application to other persons or circumstances shall not be affected thereby.

Section 3. Definitions.

For the purposes of this section, the following words and phrases shall have the meanings respectively ascribed to them.

A. "Guest" means an individual, corporation, partnership, or association paying monetary or other consideration for the use of a overnight accommodation.

B. "Overnight Accommodation" means a structure, portion of a structure or area which is occupied or intended and designated for occupancy by transients for dwelling, lodging, or sleeping purposes and includes any hotel, motel, inn, campground, or bed and breakfast.

C. "Rent or rents" means the amount paid or promised, in terms of money, as consideration for the use by a transient of overnight accommodations. It does not include the cost of food or entertainment, nor does it include the cost of banquet or other facilities not intended for use as overnight accommodations.

D. "Transient" means a person who occupies or has available for occupancy overnight accommodations for fewer than thirty (30) consecutive days. An employee who occupies or has available for fewer than 30 days overnight accommodations rented or leased for more than 30 days by an employer for use on a rotating basis by employees is not a transient.

Section 4. Imposition of overnight accommodations tax.

A. There is levied on the rental of overnight accommodations to transients within the borough a tax on the rent for each overnight accommodation rented for each twenty-four (24) hour period or portion thereof. The amount of the tax shall be four percent (4%) of the rent charged for the overnight accommodation . The person purchasing the right to occupy an overnight accommodation shall pay the tax. [The mere making of a reservation to rent an overnight accommodation in the future is not a taxable event under this section.]

Section 5. Collection and accrual of overnight accommodations tax.

A. Every operator renting overnight accommodations subject to taxation under this ordinance shall collect the taxes imposed by this ordinance from the transient guest at the time of collection of charge for the overnight accommodation and shall transmit the same, monthly, within 30 days, to the Denali Borough. The tax imposed shall be shown on the billing to the guest as a separate and distinct item.

B. This tax accrues each day of occupancy and shall be transmitted by the operator to the municipality within 30 days of the end of the period covered, irrespective of when the guests actually pay their bill to the operator.

C. An operator may not advertise or state to the public or to any guest or renter, directly or indirectly, that the tax or any part of it will be assumed or absorbed by the operator of the overnight accommodations, or that the tax will not be added to the rental or that it will be refunded, nor may any operator absorb or fail to add the tax or any part of it or refund any tax or fail to separately state the tax to the renter or guest.

D. Each operator is responsible for the overnight accommodations rental tax imposed by this ordinance.

Section 6. Violations a misdemeanor.

Any person, firm, copartnership or corporation violating any of the provisions of this chapter is guilty of a misdemeanor.

Section 7. Effective Date.

This ordinance becomes effective May 1, 1991. Authority to collect this tax was granted by ballot measure at the time of incorporation which date was December 7, l990.

DATE INTRODUCED: February 3, 1991

FIRST READING: February 3, 1991

PUBLIC HEARING: February 23, 1991

PASSED and APPROVED by the DENALI BOROUGH ASSEMBLY this 10th day of March, l991.

SIGNATURE ON FILE

Mayor

ATTEST: SIGNATURE ON FILE

Borough Clerk