Overview: Are Short-Term Rentals Allowed in Ketchikan, AK?

Yes, short-term rentals are explicitly allowed in Ketchikan, Alaska. The Ketchikan Gateway Borough defines short-term rentals (STRs) as dwellings where someone "transient" stays for less than a month, without the owner living on the property. Short-term rentals are permitted uses with standards in residential, commercial, and miscellaneous land use zones throughout the borough.

How to Start a Short-Term Rental Business in Ketchikan

To establish a short-term rental business in Ketchikan, property owners must complete the following steps:

1. Obtain Required Permits and Licenses

   • Secure a free zoning permit from the Ketchikan Gateway Borough Planning Department
   • Apply for an Alaska State business license (required for all rental income operations)
   • Register for local sales tax collection and remittance
   • Register for transient occupancy tax collection

2. Ensure Property Compliance

   • Verify the property meets all zoning requirements for the specific land use zone
   • Provide at least one dedicated off-street parking space per STR unit
   • Ensure compliance with all applicable land use codes and building requirements

3. Set Up Tax Collection Systems

   • Establish procedures to collect and remit borough and city taxes
   • Note that major platforms like Airbnb and VRBO do not automatically collect Ketchikan's local taxes

Required Documents, Permits, Licenses, and Guidelines

Essential Permits and Licenses:

• Zoning Permit: Free permit from Ketchikan Gateway Borough Planning Department (no expiration or annual renewal required as of 2023)
• Alaska State Business License: Required for all rental income operations ($50 annually)
• Sales Tax Registration: Required for collecting and remitting local sales taxes
• Transient Occupancy Tax Registration: Required for collecting and remitting lodging taxes

Key Guidelines:

• Properties must comply with borough land use code requirements
• No owner-occupancy requirement (owners do not need to live on the property)
• One parking space minimum per STR unit
• Properties must be suitable for transient occupancy under 30 days

Specific Regulations for Short-Term Rentals

Zoning and Land Use:

• STRs are permitted uses with standards in residential, commercial, and miscellaneous land use zones
• No special conditional use permits required for most residential properties
• Properties must meet all standard setback, height, and area requirements for their respective zones

Operational Requirements:

• Parking: Minimum of one off-street parking space per short-term rental unit
• Signage: Must comply with zoning district signage requirements
• Duration: Rentals must be for less than 30 consecutive days to qualify as short-term rentals
• No Annual Renewals: The borough assembly voted in 2023 to remove the annual permit renewal requirement

Tax Obligations:

Borough-Level Taxes:

• Borough Sales Tax: 2.5% baseline rate
• Borough Transient Occupancy Tax: 4%

City of Ketchikan Additional Taxes (within city limits):

• City Sales Tax:
  • October-March: Additional 3% (total 5.5% with borough tax)
  • April-September: Additional 5.5% (total 8% with borough tax)
• City Hotel Tax: Additional 7% (combined with borough TOT = 11% total lodging tax)

Total Tax Burden in City of Ketchikan:

• Off-Season (Oct-Mar): 16.5% (5.5% sales tax + 11% lodging tax)
• Peak Season (Apr-Sep): 19% (8% sales tax + 11% lodging tax)

Recent Regulatory Changes:

• May 2023: Assembly adopted Ordinance 2011-Substitute Amended, formally implementing the STR permitting system
• 2023: Removed annual permit renewal requirement, making permits permanent once issued
• The regulatory framework aims to balance tourism economic benefits with local housing availability monitoring

Contact Information for Local STR Authority

Primary Contact:

• Department: Ketchikan Gateway Borough Planning Department
• Planning Director: Richard Harney
• Phone: (907) 228-6625
• Address: 1900 First Avenue, Ketchikan, AK 99901
• Website: www.kgbak.us

Additional Resources:

• Borough Code: ketchikangateway.borough.codes
• Tax Information: Contact Borough Finance Department at main number

Source Links and References

1. STR Profit Map Regulations Page: www.strprofitmap.com/regulations/AK/ketchikan
2. Borough Assembly News Coverage: www.krbd.org/2023/04/18/ketchikans-borough-assembly-advances-short-term-rental-permitting-but-nixes-annual-renewal-requirement/
3. Borough Housing Information: www.kgbak.us/1052/Housing
4. Borough Code - STR Regulations: ketchikangateway.borough.codes/KGBC/18.50.020(o(1)(b)
5. Alaska STR Laws Overview: www.gosummer.com/post/alaska-short-term-rental-laws

Important Note: While this guide provides comprehensive information based on current regulations, short-term rental laws can change. Property owners should always verify current requirements directly with the Ketchikan Gateway Borough Planning Department and consult with local legal counsel when establishing STR operations. The borough's approach is relatively permissive compared to other Alaskan communities like Sitka, which have implemented stricter restrictions on short-term rentals.