Borough assembly looks at alcohol tax

Posted: Friday, July 18, 2003

FAIRBANKS (AP) The Fairbanks North Star Borough Assembly are sponsoring an ordinance to put a question to voters, asking them if they want a 5 percent tax on alcohol sold outside Fairbanks and North Pole.

The proposal is being put forth by two assembly members.

The assembly was to decide Thursday whether or not to schedule a public hearing on the ordinance at the end of the month.

If the question is placed on the Oct. 7 municipal ballot and approved by voters, the net result is that everyone who buys alcohol within the Fairbanks North Star Borough would pay a 5 percent tax.

In North Pole, where there's already a 3 percent sales tax, the borough would collect a 2 percent tax on alcohol.

''I hope it will appeal to people's sense of fairness,'' said Assemblywoman Cynthia Henry, who sponsored the ordinance along with Victoria Foote.

The two want to level competition among alcoholic beverage sellers but also say the tax helps diversify the borough's revenue base.



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