Sales tax cap debated

    Ketchikan, Alaska (KINY) Officials have put off until June a decision on whether to raise the single item sales tax cap.

    Currently there is no sales taxes collected on items over $1,000. One proposal is to raise it to $1,500.  Rental sales taxes could be kept at $1,000.

    A joint committee, the cooperative relations committee of the Ketchikan Gateway Borough and City Council have discussed the proposal.

    Resident Mary Lynn Dahl said the current system is unfair to those on low incomes, "If you look at the fact that the lower income individual is paying sales tax on rent and food and somebody who is purchasing something for $15,000 is not paying on the $9,000 to $14,000 individual.  The guy making $15 an hour is paying the tax on all his rent and food.  That is basically unfair."

    She suggested that millions are being left off the table for local governments.  She proposed raising the tax cap to $5,000.

    Assembly member Judith McQueery suggested the borough have a comprehensive conversation on all the sales tax and exemptions available to them.

     

     

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