Fairbanks, borough rethinking tax on hotel rooms

FAIRBANKS - Alaska Airlines paid $60,000 in bed-tax money for employees staying at the Westmark Fairbanks Hotel.

But the city tax code grants an exemption to companies that rent rooms long-term. So the city repaid the money late last year.

The Fairbanks Daily News-Miner reports the incident has the city and borough rethinking their 8 percent tax on hotel rooms. Both municipalities currently exempt people who take out rooms for longer than a month.