Borough residents have not previously had to pay taxes on purchases beyond $500, but that is up for discussion.
Kenai Peninsula Borough administration is investigating current tax codes, during which an ordinance to raise the tax cap on purchases to $1,000 has been tabled.
Assembly member Kelly Cooper of Homer introduced the ordinance.
Asm. Cooper: “Well we’re looking at declining revenues from the state and there’s always an issue with school funding and revenues in general. I was really against the sales tax on non-prepared foods and thought that this was a much better solution. As well as that tax has not been adjusted since the 60’s when it was instituted.”
Public testimony was taken at the May 5 assembly meeting where some local business members said that increase would drive business out of the Kenai Peninsula.
Asm. Cooper: “And I actually received a great deal of phone calls as well, and it’s like anything, there are particular groups who think they should be exempt but they want everyone else to be taxed and it’s just not appropriate to exclude one group and have everyone else carry it. I think it’s a fair tax across the board, I don’t think there should be exemptions.”
Even if that ordinance were passed by the assembly when it is picked back up in June, the question would be put to the Kenai Peninsula Borough voters in October.