Dillingham voters to consider sales tax hike

Posted: Monday, August 28, 2000

DILLINGHAM (AP) -- Dillingham voters will consider a 1 percent increase in the local sales tax in the October municipal election.

The city council voted earlier this month to put the proposal on the ballot.

If passed, the sales tax would rise from 5 to 6 percent. The alcohol and bed tax would rise from 9 to 10 percent.

The city currently budgets for about $1.5 million from sales taxes, said city finance director Katy Bagierek. An increase would raise an additional $300,000 a year.

''We need the increase to build up the general fund,'' Bagierek said. ''Paying for the landfill has cost us most of our general fund.''

A proposed property tax increase, which would have raised $375,000 annually, was voted down by the council in June.

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