SitNews - Stories in the News - Ketchikan, Alaska



Regarding the Moose lodge permit, and tax collections...
By Ty Rettke


March 31, 2006
Friday PM

Mrs. Heath states in her letter: "First of all, businesses in Ketchikan are charged with the responsibility of collecting and remitting sales tax."

This is a little misleading as well. While businesses are collecting sales tax, they are charged BEFORE collecting it. (((This applies to new businesses)))

Yes, you send a check that is an estimate of what you will collect for that quarter, or year or what ever time frame. Then you collect the taxes.

This makes starting a new business extremely difficult, especially in an already depressed area, with inflated land "values", and rents.

The reasoning behind the prepaying of taxes, is , (as described to me), that some businesses where cheating. Running transactions under the counter, or out right lying.

We all are aware of the rumors of these dealings (and worse, by far) that are going on in the various out of town, and out of country jewelry stores. The answer to this? Random Audits!!!

Who is the first random audit??

A local business. More than 80 years a local business.

But I digress.

Basically, this town is not friendly towards new business, be it local, or out of town (large tech/industrial). This will come back to haunt us (us being the younger generation that will have to clean up the current mess in years to come).

Back to the point,

The fact that we have to pay the taxes (on an estimated amount of sales) before actually making those sales is counter intuitive... how will we pay the tax if we don't have any sales yet??

So, I can sympathize with the Moose's predicament, and agree that the Moose Lodge should not have had its permit removed, as now its chances of raising the taxes it owes (for next years sales?) will be that much harder, thus spelling a more certain end for it.

Ty Rettke
Ketchikan, AK - USA

About: Ty Rettke is a 15 year resident of Ketchikan.


Related Viewpoint:

letter Denial of the Moose Lodge permit By Charlanne Heath - Ward Cove, AK - USA



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Ketchikan, Alaska