Sponsor Statement for SB 23

Excise Tax on Transient Lodging

Senator Bert Sharp

SB 23 is a straight forward bill which would levy a 2% excise tax on the amount charged for occupancy or use in hotels, motels, rooming houses, bed & breakfasts, camper spaces and other facilities providing temporary lodging or living quarters. Use of these revenue dollars are intended for use, subject to appropriation for Alaska tourism marketing and promotional activities.

This legislation is an option to provide revenue from the industry to support the marketing of Alaska in the tourism world. Presently, this activity is primarily being paid from the general fund. This is an option that is offered as a step toward self-pay by the 3rd largest business in Alaska for promotional efforts benefiting their enterprises. It also can be a key element in meeting the 66 million dollars of new revenues called for in our FY 98 budget plan.

Thank you.