The city of Homer and the Kenai Peninsula Borough have both increased their respective sales tax rates by a whopping 50 percent this year.
They both collect sales tax on every gallon of fuel purchased. During the past year, the cost of a gallon of fuel has increased by about 50 percent, not including sales tax. We are all now paying an increase by 50 percent sales tax on each gallon of fuel that we buy that by itself has increased in price by 50 percent.
This compounding effect of increased sales tax rates on increased fuel prices has caused windfall sales tax collections for both the city of Homer and the KPB. There is no need to pile on an ill-advised tourist tax to drive tourists away.
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