Borough Assemblyman Blaine Gilman introduced an ordinance that would allow the borough to collect sales tax on non prepared groceries year round.
Gilman: “Right now the current sales tax structure is kind of confusing for the borough on groceries. For the borough we charge a 3% sales tax and that for groceries only gets charged three months out of the year so that’s basically the summer. And another nine months out of the year there’s an exemption basically on groceries and what this ordinance does is asks to repeal that exemption. That will generate an additional revenue of about $3.3 million a year.”
Although the ordinance is not scheduled for public hearing until March 17, the assembly allowed two people to speak about the ordinance.
David Brighton stated that he supported the move to repeal the seasonal exemption on non-prepared foods because the additional revenue would help with the current projected education budget deficit.
Currently the borough’s sales tax is dedicated towards schools and this additional revenue would work hand in hand with the borough funding the school district to the cap according to Gilman.
James Price of Nikiski spoke also stating that he has always been against the tax and did not know why the borough could not take no for an answer, as voters turned down a year round grocery tax previously.
