Two tax proposals are in front of the Ketchikan Gateway Borough Assembly on Monday. The first would raise the sales-tax cap on single-purchase items from $1,000 to $1,500; the second would establish a boroughwide marijuana excise tax.
Raising the sales tax cap was proposed during the Assembly’s last meeting, but the original idea was to raise it to $3,000. That would have meant single-purchase items of large value, such as vehicles and appliances, would be taxed up to $3,000, but not beyond that price.
The tax cap has been $1,000 for many years.
The majority of the borough felt that tripling the tax cap was too much all at once, and voted to change the amount to $1,500 for now, but to also allow the tax cap to adjust with inflation. The measure is returning to the Assembly on Monday for a public hearing and second vote.
Another part of the original proposal was to exempt the first $500 of residential rent from sales tax. That portion will come back to the Assembly on Aug. 15th.
A vote on the marijuana tax was postponed from the Assembly’s last meeting after a suggestion that the borough tax pot based on potency.
Marijuana products, such as edibles, and leafy pot both still would be taxed based on price, according to the revised ordinance. But products would be taxed an additional amount based on potency.
If the measure is approved as written, all retail marijuana would be taxed between 5 and 10 percent of the retail price, in addition to the regular sales taxes. On top of that, marijuana concentrates and edibles would be taxed between 5 and 10 cents per milligram of THC, which is the active ingredient in pot.
If approved by the Assembly, the tax would still need to be ratified by voters.
Monday’s Assembly meeting starts at 5:30 p.m. in Borough Assembly chambers at the White Cliff building. Public comment will be heard at the start of the meeting.
