Fairbanks mayor proposes 3 percent city sales tax
Proposal would replace property tax
Originally published Sunday, October 19, 2008 at 12:00 a.m.
Updated Monday, October 20, 2008 at 9:05 a.m.
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Stumble It!CORRECTION: The Fairbanks city budget is around $30 million and a 3 percent sales tax would bring in an estimated $35 million. The numbers were incorrect in the original story.
FAIRBANKS — If Fairbanks adopted a 3 percent sales tax — with a long list of exemptions and capped at $30 per purchase — enough money could be raised each year to do away with the city’s property tax.
Fairbanks Mayor Terry Strle made that pitch to the business community at a recent Chamber of Commerce luncheon.
While the city operates as efficiently as possible, basic services like police, fire and emergency medical eat up a huge chunk of the city’s annual budget, she said. Add in road maintenance, and there isn’t a whole lot left.
Revenues are drawn largely from the city’s property tax, capped by ordinance last year at 4.9 percent.
Strle said one of the most frequent complaints she hears is that property owners are shouldering the burden for everyone who works, shops or simply drives through the city.
“And they are,” she said.
A study by Information Insights, an Alaska consulting firm, estimated a 3 percent sales tax would generate about $35 million annually. The city’s total budget is about $30 million, Strle said.
That proposed sales tax would be capped at $30 per purchase, and senior citizens wouldn’t pay a penny. In addition, the tax wouldn’t apply to food purchases, energy spending or health care, Strle said.
A sales tax would draw from more people than a property tax. The sales tax would be paid by anyone, from anywhere, spending money in city limits — the same people, Strle said, who are served by city roads, police and fire protection and emergency medical service.
She suggested that residents who found the concept appealing might want to launch an initiative, collecting signatures to put the question before voters.
“In order for it to happen, it has to be a citizens’ group,” Strle insisted. She already has received positive feedback on the proposal, including replies from several people who say they’re ready to sign such a petition.
The response at the chamber lunch was hearty applause.
Later, Fairbanks Economic Development Corp. Director Jim Dodson gave a general stamp of approval.
“I’ve always been an advocate of some type of economic activity tax,” he said. Taxes on money movement are more equitable than a property tax, which places an undue burden on senior citizens with fixed retirement incomes, he added.
If a sales tax pitch gains steam, Dodson hopes a borough-wide plan can be implemented to keep competition among stores on an even keel.
“In theory, it gives an unfair advantage (to stores outside the city),” he said.
Dodson didn’t portend any spending slow-downs if a sales tax is approved.
“I don’t avoid North Pole because they have a sales tax,” he said. “ I really don’t think it would be a negative issue.”
Strle said past sales tax proposals, which have been voted down, weren’t developed adequately and didn’t have enough time before the election to communicate the facts to voters.
Voter approval would be a prerequisite for the city to change its charter to allow a sales tax, Strle said.
Most opposition to sales tax proposals has been rooted in concerns that a regressive tax, which is applied across the board, hits low-income people harder than the wealthy.
“My goal was to start the conversation,” Strle said. “We need to have an intelligent conversation.”
Contact staff writer Rena Delbridge at 459-7518.
Community Discussion
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North Pole has an $8 DOLLAR CAP. Thirty dollars is RIDICULOUS. Terry are you listening! People can't afford a $30 cap. Lower the cap, lower the cap and you'll get your numbers to sign the petition.
I live in North Pole. I do the majority of my shopping in Fairbanks, partly due to the wider selection of stores, but also do to the lack of sales tax. If Fairbanks chooses to implement a sales tax, I'll probably do a bit more of my shopping in North Pole, all other things being equal.
This where it starts - "just" a 3% tax. And then it's just another .1% for some worthy cause like the schools or roads. And then it's just another few tenths of a percent. I don't care how you spin it, I'm not signing any petition.
Meh, one more attempt at the local govt to get their hands on money they haven't earned.
Furthermore, why doesn't the city charge for the service provided by police, fire and EMS? If the buget is being eaten up by these services should not the city charge the people who use them pay for them? (my $0.02)
Furthermore, why doesn't the city charge for the service provided by police, fire and EMS? If the budget is being eaten up by these services, should not the city charge the people who use them? (my $0.02)
Ok, first - there's a complaint about a $30.00 cap. In order to hit $30.00 in taxes you have to spend $1,000.00. Granted, it will hit all the folks buying fuel and such, $15.00 on a $500.00 bill, etc. but for all the people buying snow machines, four-wheelers, and things, $30.00 isn't even a thought.
Second - and more imortant than the first - North Pole has really nice equipment, facilities, and roads and it's all paid for. How? Sales tax. Fairbanks has outdated equipment, police cars that should have been retired years ago, vehicles on lease or payment plans, and let's not even talk about the streets and has no tax. Hmmm...
Third - and MOST important - you don't like the idea of a sales tax? Fine; just come up with an idea of your own... that works... that everyone will agree with. Go ahead, try, and see what happens. Anyone can complain, but it takes a real person who truly sees the need to solve a problem to identify the problem and try a solution as well. Actions speak louder than words.
I'm an educated individual who doesn't have my head buried in the sand nor dillusions of "They're out to get us!" You can't get something for nothing, it's that simple, and we can no longer survive depending on the state's charity, we MUST be self-sufficient and a sales tax is the best viable way. That's why 95% of the US has a state and/or municipal sales tax: you have to survive. PERIOD!
My friends in North Pole have told me many times they have both a 4% tax on almost everything including gasoline, and they have property tax. What really has them upset was they had a 3% sales tax just a few years ago that was raised up to 4%. That was supposed to last only one year, but the city changed it to keep it permanent. I get tired of them talking about that all the time, but here in Fairbanks one day it may be our topic of conversation.
Another thought. If the Freddies on Airport Rd is annexed it will pretty much sew up the choices for shopping for cloths and paying sales tax on them. But on the other hand if Airport Rd Freddies is not annexed, it will be a must do when shopping for cloths. You will be saving an instant 3% on your Christmas shopping. You will also save 3% on that new high def tv.
Just make it 5% from the get-go and spare us the same BS four years down the road.
I'd go along with the sales tax, after knowing WHAT is exempted.. and WHAT services will furnished. I'd like to see better road services, like repairs and maybe even plough and keep them cleared so they will last longer. Isn't that what we do with our children, tell them to take care of their things and they'll last?
Cities and gov't don't "earn" anything, that is for businesses to do. I don't mind sales/consumption tax, if I know WHAT it's going for and have a say what it goes for.
Nah, lets just have the property owners continue to carry the entire burden because that is easier.
Im all for this. Homeowners dont get to choose the amount of their property tax. But you can choose what you spend at stores.
We have voted over and over again against a sales tax. Last year Mayor Whitaker held a big meeting at the Carlson Center and it was attended by a cross-section of the community, all opposed. Please listen to the voters. What is going to happen to animals?--already people abandon and relinquish animals because they cannot afford the food and veterinary care. I see more animals coming into the borough shelter if this passes.
Here we go again, how many times will the "spenders" keep trying to milk more for us? Why cant the City do like the rest of us and CUT SPENDING, wow what an idea huh? We can not afford a gold plated police and fire department, but we have them because no one has the GUTS to say NO.
Please remember there will still be property taxes from the Borough, but now you will be paying both. Also remember how easy it will be to just raise the tax, about a half percent per year untill its about ten percent, now we have almost enough to buy another ladder truck to take to car wrecks.
Lets not be STUPID again, stop this thing by not even letting it get off the ground, dont sign a blank check to the SPENDERS,,,
Finally a Mayor who can see the benefits of a sales tax that distributes the burden of raising revenue evenly among all the residents instead of sticking the property owners with the tab. Way to go Mayor. Now if the Borough would get on board, maybe my property taxes wouldn't burden me so much. Capping the tax at $30 for purchases excluding food, heating oil, and electricity is fair.
I support a sales tax because I think it more fairly spreads out the burden then placing it all on the property owners of Fairbanks.
However, I think this goes too far in the other direction. Some things, like EMS and roads are used a lot by people who don't own property in the City. Fire and Police are probably used more by people who live in the City, but still draw a lot of their calls from people from outside the City. Those I can see being funded equally by everyone. However, I don't think that everything should be funded by the sales tax.
I think a hybrid tax is a much better way to go. The property tax could be lowered to 2% and a 2% sales tax could be implemented. (I'm guessing at those percents, they may not add up to $350 mil.) That may also allow a lower cap be set on the sales tax, or it could allow them not to tax other things.
It sounds like the sales tax won't be applied to gas, fuel oil, or electricity. At least that is what I take out of it when they say that energy would be exempt.
I love and fully support this idea. For new homeowners, not having to pay this into Escrow will free up hundreds per month, which in turn, would be put back into the economy or saved for FUEL OIL!
I wouldn't mind a sales tax..it would be less than what I'm paying in property taxes per year. hmmmm...or we could just implement the sales tax in the summer when the hordes of tourists visit ...it's amazing the comments I've overheard from European tourists who say how cheap things are here...HERE!!! shoot they'd be shocked in the lower. I don't think tourists would notice the 3% sales tax...they probably expect it.
I am in support of this idea; it's fair. I trust Mayor Strle to bring this about in a way that doesn't gouge anyone and to ensure that no one can come in after her and abuse the process.
I wonder whether the same people who say "Not my money!" are the ones who so quickly and (loudly) complain if their car snags a pothole; I wonder how quickly they would pay that EMS bill if we switched over to a pay for service EMS.
PayItForward: Awesome post--and I totally agree.
Why not raise money for roads and public services through speeding tickets and fines for littering all the DUI's? Maybe we can cut down on the number of people who like to go 80mph on the Mitch and raise some much needed cash? It seems we already have the means to raise the cash, we just don't seem to use it.
Until the State of Alaska quites giving me money each year, I will shop anywhere and do business anywhere in the State of Alaska that does not have a sales tax.
How can anyone say "only owners pay property tax"? Everyone but the homeless have to live somewhere. If the landlords are not figuring in the taxes they pay into the amount of the rent, then they are losing money.
A sales tax hurts the low income renters more than the rich property owners. Then in the next two years, there is always the "it is only 1 percent more!" Paying that three percent on purchases with $50,000 in income is harder for an individual than three percent on purchases if your income is $100,000.
If you still believe we need this tax then food, clothing, medicine (and medical services), fuel, tobacco,and liquor need to be exempt. Fuel, tobacco,and liquor are already taxed twice (federal and state).
Now we see the real reason for the attempted annex of Fred's West. They would never say it outloud, but now the truth comes out.
Funny how Anchorage doesn't have a sales tax but seems to keep the roads repaird, cleared of snow, and seems to have plenty of police and fire protection. Amazing how that works.
And just think of all the new city employees they will have to employ to manage and collect all this new sales tax. Now, the Borough does all the collecting for them and just cuts them a check for their portion. And when someone doesn't pay, or leaves town, here is a piece of property to pay the tax. When the business leaves without paying the sales tax it collected, how much is it going to cost to try and collect those funds, if there are any to collect. Might want to ask the Borough how much they have in uncollected sales tax from when the Borough had one.
Money grab, plain and simple.
People do get billed for an ambulance though. There was an article awhile ago that was about a proposal to raise the current charge of about $600 to something like $1300. This was because the $1300 more accurately covered the cost of an ambulance.
We haven't voted in sales tax for a while. At least a year. The merchants downtown just keep the same "No Sales Tax" signs from election to election and stick them back in their windows. No need to print new ones.
It seems abundantly clear that Fairbanksans dont want another layer of tax collecters, and most property owners realize that they cant write sales tax off when they file their fed taxes.
How about we vote on this every 3rd year. That in itself would save the city money. Plus, by then there might be enough newcomers moved up from Outside that would be homesick for sales taxes. The majority of locals have voted it down time after time.
I also am for the sales tax. I have a feeling most of the above people that are not for the sales tax do not even live within the city limits, nor pay Fairbanks property taxes. I get sooo tired of hearing a sales tax will break the people up here, well how about just raising property tases every year, which way do you want it? I also saw a very lot of people buying snow machines, big screen tv's, cars, vacations, and just about anything you can think of after the PFD check, I don't think anyone up here is as hard off as they say if they can spend money like drunken sailors all the time. The sales tax will need to be implemented at some point, I vote for now, it's time!
SHOP THE INTERNET AND ANCHORAGE.
OR UNIFY THE BOROUGH AND GET RID OF THE CITY. THE EXTRA MONEY CITY FOLK PAY GOES TO PAY THE OVERBURDEN OF AN EXPENSIVE CITY BUREAUCRACY.
OUTSIDE FAIRBANKS OUR EXPENSIVE BOROUGH PROPERTY TAXES AND OUR SERVICE AREAS DIRECTLY PAY FOR FIRE, AMBULANCE, ROAD PLOWING, TRASH HAULING etc. THIS IS FROM TAXATION AND FEES. WE BUY OUR OWN WATER AND PAY FOR OUR OWN SEWER SERVICES.
INSIDE FAIRBANKS THE STATE PAYS FOR ROADS AND MAINTENANCE ON THE MAJORITY OF MAIN ARTERIES. NOT THE CITY.
WHEN YOU CITY FOLK VENTURE BEYOND THE METROPOLITAN AREA OUR SERVICE AREAS OFFER YOU OUR SERVICES FOR FREE, NOR DO YOU NEED TO PAY A TOLL TO COME HERE.
SO NOW YOU WANT US TO PAY FOR YOUR SERVICE AREAS TOO?
IF THIS HAPPENS I PROPOSE THE ENTIRE BOROUGH DUMP PROPERTY TAXES, GO TO A UNIFIED SALES TAX AND LET THE CITY FREELOADERS HASH THIS OUT AT A TABLE WITH THE ELECTED OFFICIALS.
THAT WILL POINT OUT THE REDUNDANT AND EXPENSIVE CITY.
The city of Fairbanks keeps ignoring the fact that the majority of big box stores are located within the city limits and produce millions in property taxes. The majority of their customers are not living in the city limits. Do not fool yourself, except for residential areas, the State of Alaska does the road work and snow removal on the major roads in Fairbanks. How many people really know what the city taxes are used for? Do some research and it might surprise you. I agree, except for exempt items, if a sale tax passes I will no longer shop at the stores in town and I will let the stores know this. Why bother wasting my money on gas when I can shop on line and get better quality and prices plus free shipping.
Hay, teach! The city worker unions are about to eat your 4% wage increase!!! If you spend $30,000 you get to pay $900 in sale tax!!!!! Ha Ha ha!!! Go-n-a shop in North Pole! Drive to Anchorage? Move to Calif? Now that is a good idea! Ca sales tax is 8% Bye!
As for the deductions. Deductions cometh and go.
I bet the New Miner is exempt. A political pay back for it's FUTURE support!
A city budget of $300 million for about 30,000 people?? That is $10,000 per person including kids. $40,000 per house hold of 4.
The city used to have 200(?) workers that figures out to $1,500,000 each. If this is off by 50% the they are costing the city 750,000 dollars each!
Wounder how the carpenter's, grocery clerks, plumber, borough workers, IBEW members, UAF unions and state union workers feel?
You get a cut, and the city unions get a fat raise!
Yes we now proof, "Some union members DO live better than other union members!"
Tolls??? Thats the answer!! Toll booths on the Parks and the Rich!! LOL Just kidding, please don't flame me!!
I am not in favor of the city of Fairbanks creating a sales tax mainly because it doesn't solve the problem. The problem is if we pass the sale tax do you really think they will do away with property taxes?
Alaska used to have a state wide income tax but after oil was found well we didn't need it anymore. Now it is impossible to bring an income or statewide sale tax. Learning from that why do you think we will impose a sale tax and stop a property tax?
Best thing the city of Fairbanks can do is try to not spend money and not increase its spending. I know with a bad economy and energy prices that is asking a lot. But something needs to be done about it and taxes shouldn't be the first solution all the time.
It is about time that a sales tax was instituted. However, I disagree with the $30.00 cap along with the exclusion of food. The military population contributes nothing yet buys high ticket items such as snow manchines, trucks etc. Those on public assistance should also contribute. Somehow they manage getting their nails done, buy computers, ipods, game boys, expensive cell phones, etc. Every time I pass the parking lot at Lowe's, Sportsman's Warehouse, I find it a pity to see the lost tax revenue. If EVERYONE, including seniors, were expected to contribute, you could lower the sales tax even further.
NO SNOWOGRE,
THE TOLLS WOULD BE AT UNIVERSITY AVENUE, COLLEGE ROAD AND THE STEESE HIWAY WHERE OUR SERVICE AREAS TAKE OVER FROM THE HUGE BUSINESS PROPERTY TAXES WITHIN THE CITY WHICH WE ALL PAY AT STORES.
YOU SEE WHAT THE BLOATED CITY WANTS IS FOR US TO PAY FOR THEIR FIRE POLICE ETC. WHICH WE ALREADY DO THROUGH THE STORES WE USE. IF THE CITY CITIZENS WOULD GET RID OF THE EXPENSIVE CITY THEY COULD HAVE THEIR OWN SERVICE AREA FOR WHICH THEY COULD PAY.
I would venture to guess that most of the people opposed to sales-taxes in the city probably do not own property within the city limits and so have no idea how ridiculous property taxes really are.....
I am all for ANYTHING that will at least reduce property taxes, try paying somebodies property tax one year and you'll know what I mean.
If they really get rid of property taxes and include all the box stores, then I think I will support the tax.
I would like to point out that everyone in the area is already paying property tax at some level, regardless if they are a tourist, military or a resident of a rental property. Landlords are not eating that cost. That tax is baked into the cost of every product sold and every rent paid. Land owners are being directly taxed, while everyone else is being indirectly taxed. Either way, you are paying! These efforts to spread around the tax burden by adding a sales tax are bogus for this reason. This proposal is particularly heinous, because by limiting it to $30 it is blatantly regressive. The administrative costs for this plan would also be significant, I suspect. Whether or not you believe City government has a reasonable spending plan, you should oppose this as a pointless exercise.
Don't many of the big box stores get property tax breaks as incentive to build in the City?
Also, businesses and landlords are able to spread out their property tax burden by passing the costs on to their customers, but what are homeowners supposed to do?
Once again our politicians find it hard to do a real sales tax with no limit. A nice regressive sales tax is just what the city of Fairbanks needs to save all the large property owners some cash and let the poor and middle-income earners pay more. Typical repub B.S.
a long long time ago, in another state they said a little penny tax will help out the city budget. Now, same city wants more and more and their problem never went away. Now, look at California's cities budgets. 8.95% sales tax seems to be getting them deeper and deeper in the hole. Overall I like the mayor, but this is ridiculous and I dont believe this is the answer to the problems of the budget. The box stores is where the money is. Think of something in that direction. If they leave, so what. We still are cheaper than say, land in CA.
How many in the city realize borough residents pay additional mils for their road service and fire and ambulance in addition to the basic borough mil rate everyone pays. This lack of understanding how city and borough property taxes work is part of the problem. Just wait until the borough places a sale tax. using the logic of fairness, everyone will be paying more and the city dwellers who are also borough resident can support the borough residents who do not live in the city. After all what is good for the goose, is good for the gander.
Problem is that I live in the borough. Why should I subsidize city activities. You want me to help pay for the city roads I use? - Fine. But why should I pay to run the city when I don't use any of those city serivces? I'm not against a sales tax. I just think it ought to be implemented at the borough level and at the same time it ought to eliminate the property tax. That way everybody who lives in this community can reap the benefit of the sales tax while not being doubly taxed because of property taxes.
THE ANSWER NOT ANSWERED HERE BY CITY CITIZENS IS WHY THEY WANT A CITY GOVERNMENT AT SUCH AN OUTRAGEOUS EXPENSE.
OF COURSE IF THEY LIVE OUTSIDE THE CITY THEIR FIRE INSURANCE AND COMMUTING COSTS ARE HIGHER, BUT IN FAIRBANKS THEY ARE PAYING FOR A WHOLE 'NOTHER LAYER OF FAT.
So if you don't live in Fairbanks, you are paying the residents city property taxes for them...think again! Your sales pitch would have gone over alot easier if you left that remark out.
I have seen this same idea proposed by newly elected Emily Bratcher, with the twist that it is seasonal so it can capture more money from the tourists.
I am not opposed to the idea of a sales tax; rather I am opposed to giving the city of Fairbanks any additional money until they can show they have reformed their wasteful ways.
I have no desire to pay a sales tax so I can watch two city workers sit in a truck outside my apartment eating lunch while idling for the entire hour. It is bad enough to watch just the one guy do it. I have no desire to see a few more "Official Use Only" Fairbanks vehicles in the drive thru at McDonalds, the ones I see already are more then enough.
Lets say that a sales tax replaces property tax in Fairbanks, and that this tax produces enough revenue to cover the city's budget. That sounds dandy. Doesn't it? But what happens when the city government decides to build new high schools, or any other facility in town, a road, sewage lines, etc.? Where will this money come from?
Something to think about.
In the fewest possible words:
~FOOLS AND THEIR MONEY ARE SOON PARTED! ~
Donna told you all, 2 years ago, that if the union candidate for city mayor was elected there would be a city sales tax to fund the city union's contracts. (The contracts will be coming up for renewal sooner than you think)
"Some union members live better than other union members because they live off us!"
----
Cry baby teachers are going to see their 4% raise eaten by the city unions.... Ha Ha Ha.
I wounder if the 500 people working at Wal Mart will to vote for sale tax?
How about you home owners who owe more than your property is worth --you going to vote for sales tax after you blew your chance for a tax deduction by voting for Prop A?
I think this is a excellent idea. This will bring ALL of the weight off of the shoulders of the property owners and spread the resposibility equally. We all use and rely on the city to provide us with police, fire and emergency medical services shouldn't we all be contributing? The 3% sales tax is not a high percentage, some cities are paying 6-7% sales taxes. I agree with not including senior citizens in this proposal because of their fixed monthly incomes. This is a great idea.
Are we going to cry in our beer or do something to defend ourselves?
It is time to put up or shut up!
The ITA will need money to run an anti-sales tax campaign.
How about donating 50% of what you will be paying in sales tax.. 300 bucks is about right
"This will bring ALL of the weight off of the shoulders of the property owners and spread the resposibility equally."
ALL the weight isn't on the property owners. Anyone who lives in the city, be they renters or owners are paying property tax. The only difference is if they are cutting the check to the city directly or giving it to the land lord to pass on to the city.
ive nevcer lived in a place where we had to pay a sales tax at the grocery stores let alone freakin walmart.the water quality is bad here,the taxes suck,and there are more issues then the stupid "gang" violence here.coem on people this is a small place and for them to think that? whatever think twice.they juss use it for an excuse to blame someone when stuff happens.i think we really need someone new for the city here and a new mayor who actually cares and listens to the people here.
Never feed a bear because they will always come back for more. The City is the bear.
Do you NOT get it????
DUH!!!
We keep voting it down and you keep putting
it back up!!!
NONONONONONO!!
If we wanted a sales tax- we would live in NORTH POLE!!!!!!
Peace
I live and work in North Pole, my husband is in the Airforce, but we own two houses off base. (One is a rental) I do all my big shopping on base. And in between trips, I go to Safeway, I pretty much go there everyday. Sales tax doesnt really bother me, and we get to enjoy our two new round-abouts. Those intersections were a nightmare before we got those. I shop in Fairbanks too, obviously, more options. I just wonder, if the families that live on post, will venture off with a sales tax. Probably. 3% isnt bad, but if I were the city, I wouldnt push it .
I like the basic idea, since it seems more fair.
I would vote for it if it did exempt what the article mentioned: fuel (heating, vehicle, aircraft), electricity, groceries, senior citizens, and health care if it also made basic baby supplies (diapers) and pet food exempt too. I would also need to see something ensuring that the rate would not be able to be increased more than a percent in say 5 years.
One other concern I have and would need to see addressed, is a guarantee that the property taxes will actually go away with this sales tax passing. My husband is in the Teamsters and a few years ago they had a vote to add additional fees saying that they would remove the existing fees if it passed. However, they didn't end up removing the existing fees so they are paying for both. I would hate to pay both property taxes (even at a lower amount) and have a sales tax here.
Fair share? Those living outside the city limits (except North Pole)have free use of all city services. Is it not fair they pay something? Wasilla and Palmer have sales tax. I know Wasilla suspended it's share of property tax because the sales tax revenue met budget needs. I don't think there are many exemptions but the cap is low. Cutting services won't help because the influx of non-city residents is still the same. Cut police/fire and damages will go up because they can't get there. Face it people, everyone needs to just do the fair thing.
So when this tax goes in effect are people's wages going to go up to help make up for more money they are spending for food, fuel, etc???
I highly doubt it. Maybe the Mayor wants this tax so she can get a raise.
Dognabber
I was just in town to shop at Sam's! Tell me which city services I used?
Also, tell your union boss the city" services usage"
argument has worn thin and gone the way of "it's for the kids."
Go Mayor...finally a well thought and reasonable plan. So many inaccurate statements on this blog, I could never address a lot of them but-
A sales tax will make the users (or potential users) of City services to finally fund them.
Ray- the city does not buld schools- the education system is run by the Borough. They also sold off the utilites several years ago...they do not pay to expand the systems...we ALL do. Thanks to privatization we all pay more and they are not accountable to anyone.
Peoples houepayments would drop almost $200 per month, at 3% you would have to spend (NOT on heating oil, medical or food) over $6,500 on taxable goods...who does that? Especially capped at $30 per purchase!
Finally, the tourists pay a fair share...seems like a good deal for us residents. I bet most of you against it...(the same ones who will fund Donna and her cronnies to fight this) are not even residents. Sure, most the places you shop are in the city and you don't want to pay to support the roads, police, fire and EMS.
I support this.
Wife228 - They've already stated that energy and food are exempt, so you won't need a raise to buy those things.
1AkFox - Ask FFD and FPD for the statistics on how many people use their services and are not city residents. Just because you didn't, doesn't mean other people don't.
MarieBarr
I have 100% effective solution which makes everyone happy! The cop and fire unions get more money. The money going directly in their pockets with no skimming by the management union, or the other city union.
AND, not even the teachers will get a dime of the money!
The cop and fire unions can put a donation can at each check out stand! With a pix of one of those starving kids in Africa.
At the top of can
Fairbanks Police Union
then nice living color pix of the starving child covered with flies
At the bottom in large caps..
PLEASE HELP
LEAVE A SIGNED BLANK CHECK
I can SEE it now a BLANK check signed
MarieBarr
Wa-la A perfect solution! ALL the money directly into their pockets and it is 100% tax free!
-------
With a sales pitch like that picture!
Scrooge would give 'um two bits!
Now we are all happy!!!!
The MAIN city service you used was driving on the roads. It may seem trivial to you but without the city taking care of them, you would fall into the large potholes that would develop..more than already exist. The State takes care of you (without a dime in taxes from you directly)until you reach the city limits. If you have an accident inside the city, the police/fire will respond to help you through your ordeal, again, free to you unless you need medical transportation.
OH, and don't forget that sales tax is once again deductable if you itemize.
it's better than an income tax, at least you can choose what you spend your money on. if it's true that it's just for unnecessary goods (ie. not medical, food, or energy) and if it actually increases city revenue (largely from tourists it sounds like) then i don't see the problem.
The reason that purchasing in North Pole is not a big deal is because there is a reasonable cap. I'm sorry but $30 is just ridiculous. North Pole residents pay a small amount in property taxes and sales tax both, why can't Fairbanks do that and go on a successful system. That amount is just too high. Keep it the same or less than NP and then you'll still get people coming to Fairbanks to shop.
NP City Council are you listening? People are noticing that you did not lower the sales tax back to 3% as YOU PROMISED.
Dognabber -- I never drive on the city roads!!!!
I don't shop downtown to protect your city roads from any possible damage!
When if visit my friends in town.. they are paying $3,500 or more in property tax which covers far more than - my minuscule usage.
My driving on the pavement produces no known or measurable damage.
Should I still leave two bits in the donation cup?
All government levels (Federal, State, Borough/County, City) ''WASTE'' Money .... the city is looking to increase revenue due to their 'tied up in stocks' city permanent fund shrinking into rubles - I suggest the city to go ask 'wall street' to bail them out and get the 3 percent from them since them brokers drive Maseratis....
The Federal government just gave 9 major banks an additional $2.25 TRILLION DOLLARS as half of those banks didnt need the money from the $700 billion (so called) bailout they already recieved for capital to continue business, (the Feds told the execs to take the deal , or take the deal as we get a 15-30 percent stake) ...so I suggest to the city to ask your bank to supply you with the annual $350 Million which they have now (if the city govt has established credit) or ask the Federal Governmemt to bail out your annual operating budget.
No 'This sales tax' is better than having 'That income tax' or vise-versa..... ITS STILL AN EXTRA TAX ADDED that people have to pay for when these appointed or elected majority of business people that get these government office positions mismanage on what they are in charge of....
Funny how it seems they NEVER mismanage their own businesses before they got a government position and then propose some 'sales tax' to interior residents that keep saying NO to mainly decrease a business owners tax liability burden while unfortunate for some high priced residential property owners to have to share the burden....
If all the big chain stores (that the entire Interior Alaska population supports) were NOT within city limits, trust me.. we would shop wherever they were located, it wasnt my choice that they built them located in Fairbanks.
1AK Fox- way to distract away from the real issues. Clever of you avoid using factual or statistical information to make a point. There is no reasonable way to make this a union issue. You are trying to incite an emotional reaction for your point of view by trying to make this about something it isn't...unions.
Then again, you never make factual arguements. You always are anti services, anti government, anti union...seems like you should move to Tok, Delta or further. Or do you make your money of the same individuals you loathe so much? I also find it hard to believe you never drive on city streets or enter the city...in which case you may need the services they provide. Everyone is entitled to their perspective and opinion...but at least attempt to be credible.
I suspect the feds are in serious trouble.. because of the drop in tax revenue.
---------------
Anyone have a better idea?
I have 100% effective solution which makes everyone happy! The cop and fire unions get more money. The money going directly in their pockets with no skimming by the management union, or the other city union.
AND, not even the teachers will get a dime of the money!
The cop and fire unions can put a donation can at each check out stand! With a pix of one of those starving kids in Africa.
At the top of can
Fairbanks Police Union
then nice living color pix of the starving child covered with flies
At the bottom in large caps..
PLEASE HELP
LEAVE A SIGNED BLANK CHECK
I can SEE it now a BLANK check signed
by all the pro tax people.
Wa-la A perfect solution! ALL the money directly into their pockets and it is 100% tax free!
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With a sales pitch like that picture!
Scrooge would give 'um two bits!
How can the city government and residents gripe about people using city services when all I hear from these comments is 'there driving on our roads' to go shopping and not paying for the maintenance .....
Ummmmm, as a matter of fact when I hit the major chain stores to shop , the entire routes I drive to my destinations are on STATE ROADS over 90 percent of the time to get there (Richardson-Steese-Johansen-Old Steese Hwys-Airport Way)....
I only shop in downtown like twice a year (Jerry Cleworths Coin Shop, Big Rays, and Samsons Hardware when they have a hardware item no one else in town has) which to me doesnt justify enough of 'tearing up the city roads' to burden a 3 percent sales tax.
And NO I have not stepped foot into the new courthouse either, and rarely drive on city roads as it is.
I'd prefer sales tax over property tax. But I won't support it, UNLESS there is a promise, with consequences if not followed, to get rid of the property tax immediately (the same day) after the sales tax is implemented. Government can't be trusted to keep its word. They lie, cheat and steal constantly.
According to the FFD 2007 annual report about 1/3 of all EMS calls were for non-residents of the City.
http://www.fairbanksfirefighters.org/doc...
conspiracytheorist
If I were to drive on a city street to patronize a business -- that business pays extra property tax as commercial real estate to the city! That tax is included in the item's purchase price!
Stop blaming pots holes on non city users! There are places in Fairbanks where the streets have never been resurfaced in 30 or more years!
The city streets are used by the people who live in the city; the state maintained streets are used by both groups.
RE the unions..
Yes, some union members live DO better than other union members because they live off of us taxpayers. Buy exploiting their control of local government to fill their pockets; first, by taxation and second, by appropriation.
The education lobby sacked Prop B to make sure money from new construction goes into the borough till and is available to be appropriated by their friends to the School District.
Doubt my words, watch the eduction lobby go to the borough assembly and the assemblymen they put in to office vote their raise!
I do not reside in the city however I do shop in the major chain stores (roughly $6000-8000 per calendar year on goods) and I do pay property tax too that is out of city limits.....in 2007 it cost me over $4213 in gasoline alone to commute to work (6 days/week) and commute to shopping at the major chain stores - thats over 22 percent of my annual income in gasoline alone, all the goods I buy in city limits is at least 31 percent of my annual income, my 2007 Federal Tax liability that I paid was over 9 percent of my annual income, heating fuel in 2007 for me cost $3100 which was 16 percent of my annual income, electric and basic phone (plus DSL which is the only luxury I have) is 12 percent of my annual income ...
So that adds up to 90 percent of my annual income just on basic necessities, which leaves me only $1900 for property tax , emergencies for the entire year such as house equipment or vehicle parts/maintenance costs to have to deal with when stuff breaks down or needs replaced (thank god for the dividend)
- While the city wants to propose to ME about paying an extra $180-$240 per year out of the $1900 left over for my emergencies just to shop for food and items that I need as I live over 26 miles away from Fairbanks....
When any business has an extra 3 percent burden on operating costs or 3 percent lost revenue - THAT IS HUGE ... any business will take means to restructure their budget even if it means to lay off staff members or such... or even increasing goods by 3 percent to make up for lost revenue.
I mean if I can barely get by on $19000/year living 26 miles out of Fairbanks living in a 1966 structure (which I chose to live there and not in Fairbanks) surely the city can restructure their budget without burdening their residential property owners that live in $200,000-$1 million+ houses that they chose to live in.
Asking all the villagers from remote areas not living in the borough that rely on goods located in Fairbanks to pay an extra 3 percent is really a slap in the face since they really have it hard as their cost of living is virtually double (places as far away as Circle and Northway)
If it werent for the 70 percent of the interior NON CITY resident population supporting businesses in Fairbanks, there wouldnt be hardly any commercial property tax revenue for the city in the first place , just look up the tax assessment records for these chain stores and industrial businesses on what they pay in property tax and you all will see how well the Alaska Interior POPULATION supports these businesses that the city already gets a cut on revenue from.
I do not own a house or property in Fairbanks.
I think that a 3% with a cap of $30 sales tax is fair. I should pay my share because I work in FBX, drive the roads, etc.
We have to be careful about giving away money though. I also have seen some wasteful city spending going on right now with homeowners property dividends. I'd be pissed if I was a home owner. I would hate to see the city come back in a year, 2 years, 5, etc and ask for a bump for this and that.
If I were a Fairbanks resident, I would also demand some better "services" for my dime. This crap about FPD "slowly and methodically" tracking down gangs, along with the poor snow removal in the downtown streets means that currently, the property tax payers aren't getting their moneys worth.
From what I understand, city government does get revenue from other sources like grants for their police and fire departments although its better than nuthin , but why does the city insist on another proposition to burden on the majority shopping population which are non city residents to pay for the city mismanaging and bad investments - I had to readjust my $19000/year budget which has been harder since the 2004 fuel increases , and I know the majority of city residents dont pay $4200/year in gasoline alone to commute to work and shop in Fairbanks like I have to.... I would suggest to city residential property owners to find a cheaper mill rate tax area to live in and pay more for commuting , it pretty much averages out the same anyways.
Someone mentioned California with their tax structures, they have higher property taxes, much higher sales taxes, a state lottery since 1985 (which 50 percent of total revenue goes to all schools), and people pay the city, county, state taxes from every direction while having the prestige of being the 6th largest economy in the entire world and guess what - the state is over $1 BILLION IN DEBT and wants a bailout from the Feds- Whenever a government level or department has to make cuts due to no extra revenues they cant get, they ALWAYS make cuts on services for the people that we the people have been paying for..
However the government dont make cuts for newer offices or cuts for a newer courthouse or new buildings and facilities or make cuts from buying new furniture or government pay increases, stuff like that.
So do you all REALLY think if Alaska or Fairbanks ends up just like 'the states' on their overpaying of tax after tax schemes that it will be cheaper in the long run for everybody ? - I doubt it , thats why were Alaskans and certainly the city of Fairbanks has totally forgotten why were Alaskans, until the NO SALES TAX vote slaps them in the face once again.
A 3 percent sales tax wouldnt be a big deal if us Alaskans didnt have to pay the 10 percent or more mark up on prices due to shipping costs, no business would be willing to absorb a 3 percent loss to offset a sales tax so why should we the people when we pay more than 10 percent for goods alone to be imported.
Hell , let me be the city manager or the executive accountant for the city and I will show you how to restructure an operating budget while decreasing residential property taxes while NO sales taxes to be administered, I will certainly get rid of all the waste.
One thing which is absolutely certain: the sales tax money will go to exactly the same place as the city property tax money.
As pointed out: commercial real estate pays higher property taxes to the city and borough.
Those taxes are paid by you when you purchase something.
In effect, with out the borough residents shopping most of the city businesses would go under!
As for the unions, they are out to get all they can get. Oil companies are out to get all they get.
Thieves, drug dealers, and hookers are all to get what they can get; but, they don't have the help of the city and borough government's ability to use tax money to fill their pockets.
If the tax payers don't hang together, we will all individually. Group action is the only way.
Have you donated to the ITA?
I have since it was founded --- I called it "insurance".
The ITA has saved all of us thousands of dollars over the last 20 years. It has even saved the city and borough union members money.
No other organization has helped all us of equally.
As it is now, you never really own your home. Even if it's paid in full, if you get behind on your taxes, for any reason, you can loose your home. LOOSE YOUR HOME! So, I think property taxes should be outlawed. A 3% tax is palletable with some type of cap. Exemptions, I'm sure there will be some. What will they be? I like the idea. Lets keep the dialog going on this. Lets take it borough wide...
Pardon my ignorance for not taking the time to read each of the above comments. I just did a quick search of the population of the city of fairbanks - Wikipedia says the 2007 census gives Fairbanks City a population of 34540. Devide 300,000,000.00 (300 million) between each city resident and this comes out to more than $8,685.00 each man, woman and child. Now, I am not a city resident, but where the heck does all this money come from and where does it go? I do not know how many city employees there are, but this seems like a lot of money to be spent in a little town of 35,000 peop