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Assembly votes to protest Salmon Falls Resort liquor-license renewal over $97,000 in unpaid sales tax
Summary
The Ketchikan Gateway Borough Assembly voted unanimously to protest the renewal of Salmon Falls Resort’s liquor license after borough finance staff said the business had $97,000 in unpaid sales tax and had not remitted 2025 returns; the clerk will notify AMCO and urge withholding renewal until taxes are paid.
The Ketchikan Gateway Borough Assembly voted 7-0 on Sept. 2 to protest the renewal of alcohol license number 714SF, issued to Salmon Falls Resort, after borough finance staff presented evidence the operator was delinquent on sales tax.
Charlene Thomas, the borough finance director, told the assembly that amendments to the resort’s sales-tax returns revealed unpaid sales tax for two quarters that now total about $93,000, and that penalties and interest have increased the balance to approximately $97,000. Thomas said the amount is sales tax only and does not reflect transient-occupancy tax liability.
Clerk's office staff said the applicant was notified and that the liquor-license renewal application had been submitted to the Alaska Alcohol & Marijuana Control Office (AMCO). The applicant did not appear at the hearing.
During the quasi-judicial proceeding, assembly members discussed prior outreach by staff and the borough's past practice of warning businesses that have delinquent tax accounts that the borough may protest a liquor-license renewal. "When we have a business that also has a liquor license attached and they are delinquent in their sales tax, then we will mention that we can protest their liquor license, and they will come forward and they'll pay," the clerk said.
Assembly member Keith Otis moved to protest the renewal under borough code; the motion, seconded by Commissioner Thompson, directed the clerk to notify AMCO and urged AMCO to withhold renewal until the sales taxes were paid in full. The motion passed 7-0: Palmer — yes; Arntzen — yes; Bowling — yes; Otis — yes; Thompson — aye; Bailey — yes; Matson — yes.
The clerk will record findings of fact that the business is delinquent in sales tax despite months of outreach by borough staff. The clerk also noted a county-court notice of default and sale under deed of trust for the company’s properties scheduled for Nov. 7; the clerk said the business and corporate bookkeeping are not locally based and that staff last received an email in March from the applicant.
Under borough code, AMCO will receive the assembly's protest and the applicant may appeal the assembly decision to the superior court within 30 days.
