Assembly approves hosting‑platform rules: platforms must collect sales tax, report listings; fines increase

The Juneau City and Borough Assembly on May 19 adopted ordinance 20 25‑23b to update local code governing hosting platforms and marketplace facilitators.

Under the ordinance, marketplace facilitators such as Airbnb, VRBO and similar services must collect and remit sales tax on behalf of local short‑term rental owners who operate exclusively through a facilitator. Platforms must also require operators to include CBJ‑issued registration permit numbers in listings and provide CBJ with a monthly report of Juneau‑based short‑term rentals and permit numbers so staff can reconcile listings against the city’s registration database.

The code change raises the per‑violation penalty for noncompliance with the registration program from $25 to $100. The ordinance exempts short‑term operators from the collection requirement when a marketplace facilitator is collecting and remitting the tax on their behalf.

The assembly approved multiple amendments before final passage. The body adopted a Bryson amendment changing two 48‑hour notice provisions in the draft code to five days to give platforms more time to act when staff requests removal of a noncompliant listing. The assembly also approved a staff‑recommended amendment clarifying that issuing registration permits is mandatory and that hosts may begin using permit numbers with platforms immediately.

Public testimony was split. Michelle Norman, a short‑term rental owner, said she supported shifting collection responsibility to platforms and adding reporting but criticized the short‑term rental task force for not holding public forums before forwarding the ordinance and questioned raising fines before measuring enforcement effectiveness. “Why are we looking to change a regulation to increase a penalty when the efficacy of the current regulation is not known?” she asked.

Rhonda Heimbigner, who said she manages several rental properties, opposed the new rules and warned that regulation can unduly restrict owners’ choices. Several assembly members disclosed prior involvement with short‑term rentals; Deputy Mayor Smith said he had once operated his home as a short‑term rental but was not currently doing so. The assembly ultimately passed the ordinance with the amendments and directed staff to implement permit issuance and reporting.

The ordinance was recommended by the short‑term rental task force and reviewed by the Lands, Housing and Economic Development Committee and the Systemic Racism Review Committee. Assembly members said further public forums will be scheduled by the task force to gather community feedback.

Motion and outcome: The ordinance was moved and adopted as amended; the sponsor sought unanimous consent and no sustained objection prevented adoption.