The Kenai Peninsula Borough building, pictured Sept. 12, 2018, in Soldotna, Alaska. (Photo by Victoria Petersen/Peninsula Clarion)

The Kenai Peninsula Borough building, pictured Sept. 12, 2018, in Soldotna, Alaska. (Photo by Victoria Petersen/Peninsula Clarion)

Assembly considers repealing voter ratification on sales tax cap increase

Any increase in the maximum sales tax may not take effect until ratified by voters during borough elections.

An ordinance removing required voter approval to increase the borough’s sale tax cap will be introduced at Tuesday’s Kenai Peninsula Borough Assembly meeting.

The ordinance, introduced by assembly members Kelly Cooper and Kenn Carpenter, would not raise the sales tax cap, which has been $500 since 1964 when the borough was established.

Prior to 2005, voter approval was not required to increase the cap on the amount of sales subject to the borough’s sales tax.

In 2005, voters approved an initiative imposing a requirement that any increase in the maximum sales tax may not take effect until ratified by voters during borough elections.

In a May 23 memo from Cooper and Carpenter, they said $500 in 1964 would be worth $3,222, due to inflation.

“In the last few years increased sales tax and property tax exemptions, reductions in state funding for schools and local governments, and the ongoing needs for borough services have made it increasingly difficult for the assembly to balance the budget,” the memo said.

Two recent attempts to raise the sales tax cap failed at the ballot, according to the memo.

If the ordinance passes and the assembly seeks to increase the sales cap, it would accomplish that through the standard public process, where members of the public would have the opportunity to comment on the proposal.

The public will have the opportunity to comment on this ordinance at the July 2 assembly meeting.

More in News

U.S. Department of Justice Logo. (Graphic by Jake Dye/Peninsula Clarion)
Sterling resident charged with wire fraud involving COVID-19 relief funds

Sterling resident Kent Tompkins, 55, was arrested last week, on April 16,… Continue reading

Poster for Kenai Peninsula Trout Unlimited Fishing Gear Swap. (Courtesy Kenai Peninsula Trout Unlimited)
Trout Unlimted gear swap to return, expands to include outdoor gear

The Kenai Peninsula Chapter of Trout Unlimited will host its second annual… Continue reading

The Kasilof River is seen from the Kasilof River Recreation Area, July 30, 2019, in Kasilof, Alaska. (Photo by Erin Thompson/Peninsula Clarion)
Bait prohibited on Kasilof River from May 1 to May 15

Emergency order issued Tuesday restores bait restriction

Girl Scout Troop 210, which includes Caitlyn Eskelin, Emma Hindman, Kadie Newkirk and Lyberty Stockman, present their “Bucket Trees” to a panel of judges in the 34th Annual Caring for the Kenai Competition at Kenai Central High School in Kenai, Alaska, on Thursday, April 18, 2024. (Jake Dye/Peninsula Clarion)
Bucket trees take top award at 34th Caring for the Kenai

A solution to help campers safely and successfully extinguish their fires won… Continue reading

Children work together to land a rainbow trout at the Kenai Peninsula Sport, Rec & Trade Show on Saturday, May 6, 2023, at the Soldotna Regional Sports Complex in Soldotna, Alaska. (Jake Dye/Peninsula Clarion)
Sport show returns next weekend

The 37th Annual Kenai Peninsula Sport, Rec & Trade Show will be… Continue reading

Alaska Press Club awards won by Ashlyn O’Hara, Jeff Helminiak and Jake Dye are splayed on a desk in the Peninsula Clarion’s newsroom in Kenai, Alaska, on Monday, April 22, 2024. (Jake Dye/Peninsula Clarion)
Clarion writers win 9 awards at Alaska Press Club conference

The Clarion swept the club’s best arts and culture criticism category for the 2nd year in a row

Exit Glacier, as seen in August 2015 from the Harding Icefield Trail in Kenai Fjords National Park just outside of Seward, Alaska. (Photo by Jeff Helminiak/Peninsula Clarion)
6 rescued after being stranded in Harding Ice Field

A group of six adult skiers were rescued after spending a full… Continue reading

City of Kenai Mayor Brian Gabriel and City Manager Terry Eubank present “State of the City” at the Kenai Chamber of Commerce and Visitor’s Center in Kenai, Alaska, on Wednesday, April 17, 2024. (Jake Dye/Peninsula Clarion)
Mayor, city manager share vision at Kenai’s ‘State of the City’

At the Sixth Annual State of the City, delivered by City of… Continue reading

LaDawn Druce asks Sen. Jesse Bjorkman a question during a town hall event on Saturday, Feb. 25, 2023, in Soldotna, Alaska. (Ashlyn O’Hara/Peninsula Clarion)
District unions call for ‘walk-in’ school funding protest

The unions have issued invitations to city councils, the borough assembly, the Board of Education and others

Most Read