HomeMy WebLinkAbout09232019 City Council Laydown - KPB Sales Tax Proposition /g09 3
VEN/Ais, fry, Kerns
RAISING THE MAXIMUM AMOUNT SUBJECT
TO BOROUGH SALES TAX
O #2October 1, 2019 Election
Ballot Proposition
PROPOSITION OVERVIEW
Voting Information : 1. Currently, a borough sales tax is charged on the first $500 of a
• Election Day is Tuesday purchase.
Oct 1,2019 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/pollingplaces 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
www.kpb.us/absentee 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
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
kali FOR UPDATES tax)
VISIT:
www.kpb.us/salestaxcap 1, 11• _� '.I. Ca.: ); 1
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 KP8 N.Pole
No Limit \-
I512,000.00 512,000.00
'.. ;a 510,000.00
rv
S5,000 00
i3,500.00 53.000.00
II IN
S1,200 00 51,000.00 S1,000.00 S750.00 swim zoo 0i
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 *