Anchorage Assembly reviews charter amendment to add 5% short‑term rental tax to fund housing

The Anchorage Assembly held a work session to discuss AO 2025‑97, a proposed Home Rule Charter amendment that would authorize a 5% short‑term rental tax and dedicate revenue to housing development and related infrastructure if approved by voters.

Sponsors said early projections in a summary of economic effects estimate roughly $4 million to $5 million annually in later years (2027–2030) from a 5% levy on short‑term rental transactions. Administration estimates cited during the meeting suggested excluding owner‑occupied short‑term rentals could reduce near‑term revenues to about $3,000,000 annually, though presenters said longer‑term projections in the summary show higher out‑year receipts.

The sponsors and assembly members described the charter language as intentionally broad, so the specific program details would be set later by ordinance and implementing code. Assembly discussion listed potential eligible uses presented by the sponsors: new construction, acquisition or rehabilitation of housing, conversions of commercial space to residential, installation or upgrades to utilities to make sites developable, off‑site…