Haines voters will decide in October whether to add a 2% sales tax to alcoholic beverages. While the increase isn’t large, it brings up the issue of sin taxes, responsible spending and how to best fund a borough.
Seven years ago, Haines voters decided against a two percent tax on alcohol, but approved that same tax increase on marijuana.
Now voters are being asked again if they can stomach a 2% sales tax on the “selling price on retail sales of alcoholic beverages.” Assembly member Eben Sargent estimated that the tax could bring in an extra $57,000 – $78,000 to the borough each year. That money could come in handy as federal and state funding to Alaskan communities has significantly decreased in recent years.
Sargent originally proposed the alcohol tax. But before it reached the final vote to be added to the ballot, he had a change of heart.
“There’s a heck of a lot of tax on the ballot,” Sargent said. “I think see how things shake out this year, and we can always bring her back. I’m going to … vote against this and postpone it.”
Assembly member Mark Smith, the other no vote, called it a “targeted population tax.” And Smith said he will always vote no on taxes until spending is cut.
“We’re back into the sofa again, pulling out the cushions, looking for nickels and dimes,” he said.
While Mayor Tom Morphet didn’t have a vote on this issue, he summed up the sentiment.
“What could be more democratic than to ask the voters a range of taxation questions? Let the voters decide how they want to be taxed. That seems to me as democratic as it can get. That’s what we’re doing here,” Morphet said.
Mike Ward owns three liquor stores in Haines. He said after hearing about the proposed tax, he was immediately opposed.
“I’m just against all these increased taxes that keep coming up,” Ward said. “…And then if you couple that with businesses not surviving … there’s not very many small businesses around here that are prospering.”
Ward said that instead of an increase in taxes, he’d like to see the borough sell some of its land and decrease spending. He thinks taxes send the wrong message.
“Two percent has a reasonable chance of passing,” he said. “But it’s just more taxation, more negativity for those people who may be thinking about leaving our beautiful community.”
Haines resident Eric Mohr had a more positive outlook about the possible alcohol tax.
“I’m okay with it.,” he said. “I don’t think it’s a problem, and you know, alcohol. Usually you’re not buying alcohol unless you have a little bit of extra money.”
A passerby who said he is local, but didn’t want to identify himself, held up an ice cream he had just bought at the Quick Shop. He didn’t want to share his opinion on the alcohol tax increase, but made it clear an extra tax on ice cream would be a no vote.