This photo shows downtown Juneau in late October. The City and Borough of Juneau Assembly Finance Committee OK’d the city to begin drafting an ordinance that would make it a requirement to register short-term rentals in Juneau. (Clarise Larson / Juneau Empire File)

This photo shows downtown Juneau in late October. The City and Borough of Juneau Assembly Finance Committee OK’d the city to begin drafting an ordinance that would make it a requirement to register short-term rentals in Juneau. (Clarise Larson / Juneau Empire File)

City considers short-term rental registration requirement

New survey shows difficulty in assessing accurate data on short-term rental stock.

Juneau may soon have a clearer picture of its short-term rental ecosystem.

Last week the City and Borough of Juneau Assembly Finance Committee OK’d the city to begin drafting an ordinance that would effectively make it a requirement to register short-term rentals with the city.

The decision came after a presentation of a recent study was shared with Assembly members which outlined the challenges of collecting data of the short-term rentals stock in Juneau without any means to differentiate or efficiently assess duplicate, intermittent and active versus inactive listings.

Under the proposed ordinance, short-term rentals would register with the city to obtain a permit. Since the ordinance is still being drafted, specifics about the registration program, such as fees, are not yet known.

According to the data analyzed, on just one given day in mid-February, there were an estimated 577 active and intermittent listings of short-term rentals across Juneau, however, the data can fluctuate from day to day, said Ruth Kostik, a CBJ revenue officer who gave the presentation.

“You can see there has been a lot of growth in short-term rentals in the past year, with the Ironman bump, we continue to have slower but steady growth since then,” she said.

The “Ironman bump” she referred to is the period when the initial announcement of the race was made back in August 2021. According to the data, the influx of short-term rentals in Juneau began to grow exponentially after that period.

However, how much growth is still difficult to say for certain, Kostik explained, as the study suggests that of the 577 short-term rentals accounted for, it’s estimated at least 173 could be duplicate listings. Along with those challenges, she said the listings often show inconsistent identification and data depending on the platforms used.

According to the survey, nearly 85% of the listings identified in the study are for renting out an entire home/apartment, while the remaining 15% or so represent single/shared room listings or more off-beat rentals like campsites, tiny homes or boats.

For each of those listings, the person or business offering the short-term rentals is required to comply with the city’s sales tax code, which includes charging the renter for both regular and hotel bed tax to then be remitted to the city.

The study identified a slew of challenges with understanding the number of operators complying with the city’s sales tax code in Juneau’s short-term rentals stock. Kostik said the study found that short-term rental operators often either don’t know or understand the city’s sales tax requirements for the rentals and in turn are not complying.

Kostik said if the city chose to implement short-term rental registration, a lot of the challenges outlined by the study could be resolved.

Some of the things that the registration would do are require operators to display their permit license number in their online listings, which would streamline the city’s ability to decipher which short-term rentals are active and give more accurate data on the inventory of rentals in the city, Kostik explained.

“With requiring short-term rentals we can collect good information, consistent information so that we have a quality inventory,” she said. “It makes it easier for us to make sure people are in compliance with sales tax because we could tie them to an existing sales tax account or make sure they understand what their sales tax requirements are and give them good information to help keep them in compliance right away.”

She said it could also set the city up for any future steps if it chooses to pursue further short-term rental monitoring or compliance enforcement.

City Manager Rorie Watt told the Empire he thinks it’s not out of the question that the city might consider placing limitations on short-term rentals in the coming years. He said that would more likely happen if the registration requirement exposed more accurate data suggesting the density of short-term rentals in the city is harming certain neighborhoods or is taking up too much of the housing stock.

He said if the city OKs the ordinance to require registration, he expects some pushback from operators and encouraged the public to get involved with the process as it proceeds in the coming weeks.

“We want to understand what’s going on with the housing market on all steps, and registration is the next step for better compliance on sales tax,” he said.

• Contact reporter Clarise Larson at clarise.larson@juneauempire.com or (651)-528-1807. Follow her on Twitter at @clariselarson.

More in News

(Juneau Empire File)
Aurora forecast for the week of Nov. 27

These forecasts are courtesy of the University of Alaska Fairbanks’ Geophysical Institute… Continue reading

(Michael Penn / Juneau Empire File)
Police calls for Monday, Nov. 27, 2023

This report contains public information from law enforcement and public safety agencies.

The front page of the Juneau Empire on Nov. 30, 2005. (Photo by Mark Sabbatini / Juneau Empire)
Empire Archives: Juneau’s history for the week of Dec. 3

Three decades of capital city coverage.

Cheyenne Latu (left), a pharmacy technician at Ron’s Apothecary Shoppe, and business co-owner Gretchen Watts hang a poster at the front counter Thursday announcing the store’s closure after Dec. 6 as Jessica Kirtley, another pharmacy technician, works at the front register. The nearby Safeway supermarket has agreed to take the prescriptions of all customers as well as hire all of the independent pharmacy’s employees, according to the co-owners who are retiring. (Mark Sabbatini / Juneau Empire)
Ron’s Apothecary Shoppe closing after nearly 50 years as co-owners retire; last day is Dec. 6

Safeway taking over all prescriptions and offering jobs to all employees, according to owners.

Attendees at the Friends of NRA — Juneau’s banquet in 2019 talk near auction tables at Centennial Hall. The fundraising event is resuming Saturday after a four-year COVID-19 disruption. (Photo courtesy of Friends of NRA — Juneau)
Friends of NRA — Juneau fundraising banquet returns Saturday after four-year pandemic absence

New Zealand hunting safari, signed Ted Nugent guitar among items being offered.

Wade Bryson, a Juneau Assembly member, explains why he favors giving local businesses a “sales tax holiday” for at least one day next year, targeting Feb. 29 as a suitable date, during the Assembly’s Finance Committee meeting Wednesday night. The committee voted to hold onto the proposal for further study rather than sending it to the full Assembly. (Mark Sabbatini / Juneau Empire)
A local sales tax holiday? Don’t pack your shopping bags yet

Proposal to waive taxes for a day or two each year isn’t a quick sale to most Assembly members

(Michael Penn / Juneau Empire file photo)
Police calls for Tuesday, Nov. 28, 2023

This report contains public information from law enforcement and public safety agencies.

Choir members rehearse Tuesday night for a Bach holiday concert at Ḵunéix̱ Hídi Northern Light United Church. (Mark Sabbatini / Juneau Empire)
Quartet of Bach compositions joins lineup of local large-ensemble performances this season

Concerts this weekend part of resurging “wealth of riches” by choruses and orchestras, director says.

The Alaska Marine Highway System ferry LeConte at the Auke Bay Terminal on Monday, March 5, 2018. (Juneau Empire file photo)
Petition seeks name change for LeConte state ferry

Petersburg man calling attention to what he calls Joseph LeConte’s racist history.

Most Read