Packages move along a conveyor belt at the fulfillment center in Robbinsville, New Jersey, on June 7. (Bloomberg/Photo by Bess Adler)

Packages move along a conveyor belt at the fulfillment center in Robbinsville, New Jersey, on June 7. (Bloomberg/Photo by Bess Adler)

Kenai estimates 6-figure Amazon revenues

Earlier this month, Amazon filed to start collecting and paying sales taxes

Amazon has started charging sales tax in the Kenai Peninsula Borough and municipalities are struggling to work out the logistics.

Earlier this month, Amazon filed to start collecting and paying sales taxes but zip codes in the borough overlap between borough and cities, making it difficult to separate purchases made inside and outside of city limits.

At last week’s Kenai City Council meeting, the mayor and council discussed the online retailers taxation policies.

“I’m for a fair playing field,” said Mayor Brian Gabirel. “I think by working toward taxing products bought online but originate here, point of sale within our community, that we are at least leveling the playing field and being more fair to our brick and mortar stores that have come here, invested in the community and provided their services.”

Gabriel said Amazon’s move is fair to both local businesses and to the city.

“I can imagine it is pretty discouraging for them, when they’ve made an investment into the community and have to charge more than somebody else has to charge online. It’s an unfair advantage,” he continued.

According to City Manager Paul Ostrander, Kenai is projecting six-figure revenues from the changes to Amazon’s sales taxes. This estimate is based on similar projections from municipalities throughout the state.

“Juneau is projecting a significant amount of revenue based on their 5 percent sales tax within their municipality. Based on their numbers, if you are going to look at our population and our sales tax rate, we are likely going to see … We’re going to see at least six-figure revenues from this change with Amazon here in the city of Kenai,” Ostrander said.

The discussion was spurred by a previous council discussion where Council Member Tim Navarre expressed his concerns that residents are being taxed unfairly due to their postal codes.

In response, City Attorney Scott Bloom said that customers who believe they’ve been improperly taxed can reach out to the borough and Amazon to address the issue.

Reach Kat Sorensen at

More in News

A firefighter from Cooper Landing Emergency Services refills a water tanker at the banks of the Kenai River in Cooper Landing, Alaska on Aug. 30, 2019. (Photo by Brian Mazurek/Peninsula Clarion)
Cooper Landing voters to consider emergency service area for region

The community is currently served by Cooper Landing Emergency Services

Hundreds gather for the first week of the Levitt AMP Soldotna Music Series on Wednesday, June 7, 2023, at Soldotna Creek Park in Soldotna, Alaska. (Jake Dye/Peninsula Clarion)
Soldotna music series kicks off with crowds, colors and sunshine

A color run took off ahead of performances by Blackwater Railroad Company and BenJammin The Jammin Band

Kenai Peninsula Borough School District Finance Director Liz Hayes, left, testifies before the Kenai Peninsula Borough Assembly during a budget work session on Tuesday, March 14, 2023, in Soldotna, Alaska. (Ashlyn O’Hara/Peninsula Clarion)
Assembly passes borough budget

The document fully funds borough schools and includes a decrease in property taxes

The George A. Navarre Kenai Peninsula Borough building. (Peninsula Clarion file photo)
Assembly shrinks borough planning commission

The planning commission is responsible for planning the “systemic development and betterment” of the borough

The Sterling Highway crosses the Kenai River near the Russian River Campground on March 15, 2020, near Cooper Landing, Alaska. (Jeff Helminiak/Peninsula Clarion)
Russian River Campground reopens for 2 summer months

Reservations for campsites can be made online

Kristin Lambert testifies in support of funding for the Soldotna Senior Center during an assembly meeting on Tuesday, June 6, 2023, in Soldotna, Alaska. (Ashlyn O’Hara/Peninsula Clarion)
After leadership change, borough funds Soldotna senior center

The Soldotna City Council in May voted to defund the center for the upcoming fiscal year

Signs direct visitors at Seward City Hall on Sunday, Nov. 28, 2021, in Seward, Alaska. (Ashlyn O’Hara/Peninsula Clarion)
5 vying for Seward city manager gig

The Seward City Council will convene for a special city council meeting on June 12 to review candidates’ applications

Alaska State Troopers logo.
Soldotna resident found dead in home

He was found Monday morning

Dr. Katherine Ortega Courtney speaks during the 100% Alaska Community Town Hall on Saturday, June 3, 2023, at Peninsula Center Mall in Soldotna, Alaska. (Jake Dye/Peninsula Clarion)
100% Alaska survey results, state of services discussed at town hall

Change 4 the Kenai leads conversation about access to mental health, housing, transportation

Most Read