‘Discrimination’ tax gets thumbs down

Posted: Tuesday, September 19, 2006

Everyone in our Kenai Peninsula Borough needs to remember that our assembly is looking to increase only recreational businesses work loads and sales tax substantially in the future? The KPB decided last January that only recreational businesses should be removed from our $25 KPB max tax cap and that only recreational businesses should be forced to both calculate and pay sales tax on a “per person, per day” bases.

This kind of a sales tax change is completely unfair and could only be made fair if it were applied to all KPB industries.

If the KPB needs additional revenues then why not just dump a “per person, per day” tax change on all business types within our borough? It appears that the KPB does not need the additional revenue bad enough to alienate all business types, just the recreational industry. This KPB desire to alienate the recreational industry and tourists appears to stem from the fact that the assembly believes that the industry will not put up much of a fight. They appear to believe KPB recreational related businesses will do nothing to prevent this kind of tax discrimination.

The question to you is, are they right?

Ordinance 2005-09 www.act-kpb.org/ACT-XX.htm would have increased everyone’s KPB sales tax from the current 2 percent sales tax to a 3 percent KPB sales tax. It would have also forced only recreational KPB businesses to begin calculating sales tax on a per person, per day bases instead of the way we currently calculate it.

This would result in a dramatic increase in the amount of sale tax charged by only recreational businesses. The ordinance was challenged only by The Alliance of Concerned Taxpayers and is now scheduled for a repeal vote of the people on Oct. 3.

All KPB voters must ask if this is the kind of taxation future they wish to see within the KPB. Do we as a borough want to “sales tax discriminate” between KPB industries? Once we tax discriminate against the recreational industry, what would be next? Should we then tax discriminate against the hardware industry or the lumber industry or maybe between paper or broadcast advertising? The tax discrimination slope is a lot slippery than the assembly believes it to be.

Please vote “yes” on Proposition 2 on Oct. 3 and repeal this discriminatory KPB sales tax.

Don Johnson


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