There has been public outcry over our municipality’s purchasing hotels and locations for use as permanent homeless facilities.’ Purchasing such facilities reduces the tax base, thereby increasing taxes on remaining taxpayers. Rather than purchasing such facilities, renting all or part of lower tier hotels will provide safety and security for homeless people at or below the cost of purchasing such properties, particularly when property tax is figured in. It also offers the advantage of being able to flex the number of rooms as needs change. An overlooked advantage to this approach in Anchorage is that the number of people coming to town wouldn’t change but there would be less hotel rooms available. Fewer rooms with the same need means higher prices. The Muni has a 12% tax on hotel rooms. So, without renting any more rooms the tax collected would go up, pandemic years being an exception to everything.
Source : https://www.anchoragepress.com/columnists/the-anchorage-homeless-problem-a-modest-solution/article_4c7b5b6e-2e07-11ec-8685-638b14f9187d.html152