SitNews - Stories in the News - Ketchikan, Alaska


Sales Tax Increase
By John Harrington


February 23, 2009

The City Council has begun the process to raise the sales tax. They are a first class city and as such they don't need a vote of the people to raise them. But they do provide the forum so that the citizens can be heard.

I doubt anyone has missed the fact that our economy is in a tenuous state. Our community has not yet felt the full effects of what is going on down south, and with a lot of luck our local economy may remain relatively stable. But it is wise to prepare for a significant downturn. One of the best things we can do is NOT raise taxes. (In the Borough Assembly Goal Setting Session, our discussions were more about how much to lower the mill rate.)

I know the city has some major infrastructure problems. And the city will need to bond to get all of the work done. And yes, bond covenants require a tax stream to pay for those bonds. But the city is also sitting on a huge pile of cash; enough to meet the bond requirements for a year or three until we see the full extent of our current economic challenges.

City Council, please don't raise the sales tax.

John Harrington
Ketchikan, AK

About: "Borough Assembly member, and fiscal conservative."

Received February 20, 2009 - Published February 23, 2009


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Ketchikan, Alaska