Sales Tax Moves Forward; Non-Profits Funded


Maggie Wall/KMXT

The Kodiak Island Borough Assembly moved a step closer to a borough-wide sales tax last night. And it divvied up more than $363,000 dollars among a number of Kodiak’s most active non-profit organizations.

KMXT’s Maggie Wall has more.

Boro Ass Mtg 3:13 "At a sparsely…in borough funds. SOC."

At a sparsely attended meeting, the Kodiak Island Borough Assembly last night passed in first reading a measure to place before the voters the question of whether or not the borough should create a sales tax.

The public hearing on the tax proposal will be at the next regular meeting-which is when one would expect a crowd.

The ordinance before the assembly as it stands right now does not give a specific tax amount, but does limit the tax to no more than 2 percent. It would be charged in addition to any other sales taxes imposed by cities within the borough. It also limits the tax income to be used only to finance education and debt retirement.

The goal of the tax, as has been stated numerous times, by various borough assembly members, is to pay the cost of the new high school which voters have already approved. It’s estimated that payments on the school bonds will be in the range of $4 million a year-or roughly 4 mils of additional property taxes-or a 2 percent sales tax.

At a recent work session, assembly members stated specifically that they did not want the new tax money to pay any administrative costs.

Right now the ballot measure reads: Shall the Kodiak Island Borough adopt sales tax powers and levy a sales tax of up to two percent of sales, rents and services provided in the borough?

Assembly member July Fulp says she’s a "No-New-Tax" person. But, this sales tax seems the best alternative given the options for funding the new high school:

(Judy Fulp property taxes already high

The tax measure was approved 6 to 0.

Because of vacations and other scheduling conflicts, the next regular meeting-and the tax public hearing-will be held August 5th. If approved then, it would be placed on the ballot for the October 5th election.

Another item approved 6 to 0 last night was funding for local non-profit organizations. Assembly members thanked local non-profits and the people who keep them going for their hard work, enthusiasm, and volunteer hours.

Groups getting borough funding range from the Kodiak Girl Scouts with $1,000 to the Kodiak Women’s Resource and Crisis Center which received $60,000.

Kodiak Public Broadcasting which owns and operates KMXT, received $7,500 in borough funds.

I’m Maggie Wall.


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