Matanuska-Susitna Borough, AK Hotels & Lodging: Transient Occupancy Tax (2026)
Key Facts
- Tax rate
- 5% of overnight accommodations rent
- Applies to stays
- Under 60 consecutive days
- Collected by
- Operator, at time rent is paid
- Return due
- 30 days after each calendar quarter
- Late interest
- 8% per year plus 5-13% penalty
- Enforcement
- Property lien and civil suit for unpaid tax
Summary
The Matanuska-Susitna Borough charges a 5 percent tax on rent for hotel and motel rooms and other overnight lodging rented for stays under 60 consecutive days. Operators collect the tax from guests at the time rent is paid, list it separately on the bill, and remit it to the finance department every quarter.
“Hotel room” or “motel room” means a structure or part of a structure rented, or offered for rent, for a term of less than 60 consecutive days for dwelling, lodging or sleeping purposes, but excludes a structure or part of a structure rented or offered for rent solely in connection with a principal business or institutional purpose other than providing meals, lodging, entertainment or recreation; for example, a hospital or university dormitory. ... The borough levies a tax on all overnight accommodations rent payable to an operator and not exempt from taxation under subsection (B) of this section in the amount of 5 percent of the overnight accommodations rent. ... The operator shall collect the tax when the operator collects the rent. The operator shall state the tax is a separate item on the guest’s bill.
Full Breakdown
010 defines a 'hotel room' or 'motel room' as a structure or part of a structure rented, or offered for rent, for a term of less than 60 consecutive days for dwelling, lodging or sleeping purposes, excluding space rented for a hospital, university dormitory or other principal business or institutional purpose other than lodging. 020(A) levies the borough's transient accommodations tax on that rent at 5 percent, collected by the operator from the guest at the time rent is paid and stated as a separate line item on the guest's bill. 025, generally a nonprofit exempt from federal income tax under 26 USC § 501(c)(3) whose lodging income is not unrelated business income. 050(A)). 050(B)).
Violations & Fines
An operator that fails to remit collected tax, or fails to file two consecutive quarterly returns, faces an involuntary return prepared by the finance director and a lien recorded against real and personal property under MSB § 3.32.085(A). The borough can also sue the operator or the guest directly to recover unpaid tax under MSB § 3.32.080(A), and an assessment may be appealed to the borough manager within ten days and then to the superior court.
Frequently Asked Questions
What is the Mat-Su Borough's hotel tax rate?
Who has to file the hotel tax return?
Is a nonprofit lodge exempt from the tax?
Sources & Official References
Other rules in Matanuska-Susitna Borough
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