HomeMy WebLinkAbout09202019 City Council Work Session Laydown - KPB Sales Tax 612 _3
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RAISING THE MAXIMUM AMOUNT SUBJECT
TO BOROUGH SALES TAX
Ballot Proposition #2 October 1, 2019 Election
PROPOSITION OVERVIEW
Voting Information 1. Currently, a borough sales tax is charged on the first $500 of a
• Election Day is Tuesda ; purchase.
Oct 1,201'
2. This proposition would raise the taxable limit to $1,000 effective
January 1, 2020.
• Polls will be open from 3. The maximum taxable limit on residential rent would remain at
7:00 a.m.to 8:00 p.m. $500.
• A list of polling places
can be found at: ''
WHAT WOULD THE ADDITIONAL FUNDS BE USED FOR?
www.kpb.us/pollingplace By code ordinance, 100% of borough sales tax revenues goes toward
Absentee ballots can be public education. KPB has not increased the sales tax limit since it
found at: was first implemented in 1964. However, with the rising cost of
education; adjusting the sales tax cap would assist the Borough in
vwwv: p:usa.sen ee funding education.
• For more information
about voting contact the WHAT IS THE IMPACT ?
Borough Clerk's Office
»» You will only see the impact on purchases over $500 ««
(907)714-2160
This proposition would affect the first $1,000 of your taxable pur-
chase. For example, a $25,000 vehicle purchase, would have an addi-
tional $15 in borough sales tax due. There would be no change on
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purchases above $1,000.
» Current sales tax: $500 x 3% = $15 (plus applicable city sales tax)
» If proposition passes: $1,000 x 3% = $30 (plus applicable city sales
0\40 FOR UPDATES tax)
ptC VISIT:
www.kpb.us/salestaxcap
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Kenai Peninsula Borough *Voter Proposition Information *www.kpb.us *
DOES THIS INCREASE THE SALES TAX RATE?
NO: This proposition does not change the 3% borough sales tax rate. For example, a $300
shopping trip would result in a sales tax of $9.00.
» Current sales tax calculation: $300 x 3% = $9.00
» If proposition passes: $300 x 3% = $9.00
WHAT IS THE REVENUE GAIN?
Under their respective city codes, the sales tax limit in Seldovia and Homer would increase to
$1,000 along with the Borough's tax limit. Soldotna, Kenai, and Seward's tax limit would remain
at $500 unless their respective city councils voted to make a change. Increasing to a $1,000
taxable limit is estimated to generate additional revenues for the jurisdictions of:
Estimated Annual Revenue for Cities and Borough:
»» Kenai Peninsula Borough: $3.4 million »» Homer: $615,000
Soldotna: $300,000 »» Seward: $215,000
»» Kenai: $620,000 »» Seldovia: $4,600
KENAI PENINSULA BOROUGH SALES TAX LIMIT
VERSUS OTHER STATEWIDE JURISDICTIONS
Nome Kotzebue Juneau Sitka Bethel Haines Dillingham Cordova Petersburg Ketchikan Palmer Kodiak Wasilla KPB N.Pole
No Limit )1katir,
512,000 00 512,000.00
' SI0,000.00
VS5.000 00
• S3.500.00
`�� 53,000.00
51,200 00 51000.00 51 000 00 s75o 00 5500 00 5500 0
Note: Some municipalities have different limits for specific items. Kotzebue has a $1,000 tax cap on boats, cars,trucks,ATV's and
snowmobiles; Nome has a $1,500 limit on cars, trucks,ATV's and snowmobiles; Bethel has a $3,500 limit on ATV's, boats and motors,
and snowmobiles;and Haines has a $5,000 limit on several types of sales. Dillingham ranges from $3,500 to$5,000 depending on
the sale.
Kenai Peninsula Borough * Voter Proposition Information *www.kpb.us *