Fairbanks borough voters to consider alcohol tax

Posted: Friday, August 01, 2003

FAIRBANKS (AP) Voters in the Fairbanks North Star Borough will decide in the Oct. 7 municipal election if they want a 5 percent tax on alcohol.

The Fairbanks North Star Borough Assembly approved the alcohol tax question Thursday. Only one assembly member, Garry Hutchison, voted against it.

Jim O'Connor, owner of North Pole's Refinery Lounge and president of an Interior alcoholic beverage seller's association, said a rise in the state tax on alcohol in October already has burdened alcoholic beverage sellers.

The proposed tax affects alcohol sold outside the city of Fairbanks, which already has a 5 percent alcohol tax. In North Pole, where there's a 3 percent sales tax, the borough would add a 2 percent tax on alcohol.

Assembly members Bonnie Williams, Cynthia Henry and Victoria Foote, the three behind the ballot question, said it's meant to diversify the tax base.

Most of the borough's $100 million budget is funded by property taxes.

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