BED TAX – public hearing on 07/01 KPB Assembly Agenda

At the June 17 meeting of the KPB Assembly it was decided to have two public hearing opportunities  on the issue of a KPB Bed Tax.  It was also decided at that time to put on the October General Borough ballot the issue of instituting this bed tax.  I am somewhat confused the purpose of creating this bed tax; but may have come to the conclusion this was done, or expected to be done, by the Assembly because – THEY CAN.

On the 17th of June there were several members of the public who came forth to offer testimony on this issue.  There have been several opportunities for me to be part of a discussion among local taxpayers on the need and wisdom of this tax increase effort.

There are several point of interest that may make discussion easier, or may make easier the formulation of words for someone to relate to the Assembly in public hearing on either the 1st of July or the 15th of July.

The following are several point for discussion or questions which I struggle to answer:

– the need at this time to create additional tax in the Kenai Peninsula Borough.  The clearly most obvious reason for this unnecessarily effort is the quickly dwindling number of meetings at which it will be possible for Bill Smith to further the left leanings of the assembly;

– the next most obvious reason for creating this tax is – because they can;

But I digress, let me supply some more factual information for discussion:

– the Kenai Peninsula Tourism and Marketing Council (KPTMC) operates on a budget of just slightly less that $1M.  Making up this part of the $1M is an almost routine amount of $300k.  Somewhere in the inter workings of the KPB Assembly it was determined the periodic struggle on whether to fund non governement agencies (NGO) was so great; and the need on the operating budget for the marketing of the Kenai Peninsula was so huge, particularly to reach international travelers that the idea of the Bed Tax raised its head again.

– it was decided at the July 17 KPB Assembly meeting that the amount of the bed tax would be 4%.  One factor in the determination of this amount was Seward’s tax of 4%, so that must be a reasonable amount of tax to charge.  A bed tax of 4% would generate funds in an amount in excess of $2.2M (that is million). Since the taxpayers of the KPB have been supplying $300K to the KPMTC and the tax rate of 4% seemed fair; it was quickly determined that the Bed Tax at the rate equal to Seward would provide funds well in excess of the current needs of KPTMC.

– so the equitable thing to do would be to provide a proportionate kickback to the cities since if they chose to participate they would be benefiting and could at the same time help the tax promotion;

 

 

 

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