The Haines Borough saw a significant increase in sales and lodging tax revenue in the last fiscal year, but a steep drop in raw fish tax dollars, according to a report from the borough’s chief fiscal officer earlier this month.

The borough generated about $3.6 million in sales tax in FY22, a 25% increase from the year before, and up slightly from pre-pandemic levels. That number exceeded the borough’s budget prediction.

“Increased sales tax figures resulted from the combined effects of the post-pandemic return of the visitor industry, the continuation of the highway construction project, increased sales tax from online sales with the Alaska Remote Sellers Sales Tax Commission and inflation,” chief fiscal officer Jila Stuart wrote in an Oct. 6 memo to the Haines Borough Assembly.

Stuart also noted an increase in lodging tax, which was expected as pandemic restrictions eased and tourists returned to town. Lodging tax revenue was up by 77% for the areawide general fund and hit the highest mark in the past decade. “I think the visitor industry probably rebounded better than we projected,” Stuart said.

Borough staff budgeted for $77,500 in lodging tax revenue for FY22. The borough ended up generating $133,173.

The sales and lodging tax gains were partially offset by a drop in raw fish tax revenue — a levy on fish landed by commercial fishermen in the borough. The borough generated $37,240 from fish tax, down $122,685, or 77%, from the year prior.

Borough staff expected a large decline in fish tax due to the temporary closure of OBI Seafoods’ plant at Excursion Inlet and a poor commercial harvest in 2020, the year reflected in the FY22 budget. Borough staff had budgeted for $35,000 in fish tax revenue.

They predict $60,500 this year. The Excursion Inlet facility remained closed last summer, OBI processing fish caught in the Lynn Canal at the company’s Petersburg cannery. The borough’s only operating commercial processor was Haines Packing Company, which saw a boost in landings last summer but not enough to offset the Excursion Inlet closure.

The borough’s investment income was down  by 507% in the areawide fund, but Stuart said that was only “on paper” and “as the existing investments mature they are replaced with new investments earning a higher rate of interest so we can expect interest income to be higher in the near future.”