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Kodiak City
Manager Aimee Kniaziowski repeated a few times at Tuesday night's city council work
session that the city is not in a crisis or emergency regarding its finances,
but nevertheless warned that the city's general fund continues to be drawn down
annually, and could disappear if that trend continues.
She said
it's just being responsible to discuss a small tax increase.
The City of
Kodiak sales tax is currently 6-percent, a level it's been at since 1993 - just
about 20 years. The city's small property tax is just 2-mils, and generally
goes to the borough to help fund schools.
The city
will consider a 1 percentage point increase in the sales tax Thursday night at
its regular meeting, when a code change ordinance will be introduced.
Another
part of the proposed ordinance would raise the sales tax cap from $750 to
$3,500, meaning the most one can pay on any one large purchase would increase
from $45 to $245.
That change
and going to a 7-percent sales tax would generate $3.1-million in additional
revenue per year.
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