The Soldotna City Council introduced two new ordinances at their last meeting on Dec. 17 that would change how short-term rental units are permitted and taxed. Public hearings for both will occur during the next city council meeting on Jan. 14.
The first ordinance, 2025-038, would amend city code to provide rental owners with more consistent tax exemptions and ensure accurate tax calculation and collection. The amendment would align the city’s biennial budget practices with standards promoted by the Governmental Accounting Standards Board, aiming for a smoother process of public fund management.
The ordinance proposed multiple amendments to Soldotna Municipal Code Chapter 3, including one to chapter 3.16 that specified Alaska school districts, federally-recognized tribal governments and the University of Alaska as included in municipalities and state and federal governments exempt from the 4% tax all other short-term rental owners are required to collect in addition to the city and borough sales tax rates.
The second ordinance, 2025-039, would require all short-term rental units to obtain an administrative permit and meet the city’s operational requirements. Right now, city code distinguishes between non-owner occupied units and owner-occupied ones.
Units that aren’t occupied by an owner require a local point of contact, limits on how many people can stay in the unit and restrictions on parking and signage. Owner-occupied units are currently exempt from those regulations and don’t require a permit to operate.
According to the ordinance, differentiating between non-owner occupied and owner-occupied units makes it difficult to enforce those requirements and fails to establish a point of contact for anyone with concerns about renters. By updating the city’s code to make regulations universal for all units, the council aims to improve administrative efficiency.
The new city code would define a short-term rental unit to “a dwelling unit that is subject to a rental agreement, whether implicit, explicit, or written, between the owner or tenant of the dwelling and a transient guest or guests to provide, for compensation, temporary accommodations for a term of less than 30 days, or one month, whichever is shorter.”
The amendment entirely removes the existing definition of owner-occupied units, which currently states that “an owner-occupied short-term rental unit means a short-term rental unit such that the dwelling is the owner or tenant’s primary residence and permanent place of abode.”
Both ordinances are available through the Soldotna City Council meeting portal.
