Representatives of the Ketchikan Visitors Bureau and local lodging operators asked the borough assembly on Dec. 15 to reconsider a recently adopted change to the borough transient-occupancy tax that will take effect Jan. 1, saying the elimination of a city-based exemption raises combined peak-season lodging taxes to about 19% and could harm independent travelers and year-round lodging operators.

Cara Tetley (Ketchikan Visitors Bureau) said lodging partners were not engaged directly during the ordinance’s review and that newspaper coverage was many operators' first notice. A general manager of a large downtown hotel told the assembly rising costs (freight, wages, insurance) and the timing of a 44% increase in some travelers' tax burdens merited either reinstating the prior transient-tax relief waiver, phasing in the change, or pausing implementation to permit structured industry engagement before Jan. 1.

Staff explained the prior city exemption functioned so that travelers who paid the city tax were not charged the borough portion while the new ordinance removes that exemption; restoring an exemption would require an ordinance and follow standard introduction and public-hearing procedures. Assemblymember Palmer moved to allow discussion of the item at the meeting, but the procedural motion to open assembly discussion failed on roll call (several members voted no), so there was no assembly action to amend or delay the ordinance at this meeting.

Staff confirmed a new ordinance could be introduced for later consideration, and the assembly's clerk explained that any change would need an introduction and two hearings to take effect. No ordinance to reinstate the waiver or to phase the increase was presented at the meeting.