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Proposal for seasonal sales tax to shift some education funding to visitors moves forward to hearing
Summary
The Kenai Peninsula Borough Finance Committee on July 8 introduced a proposal to allow a seasonal sales tax rate that proponents say would shift more education funding to peak tourism months and could be used to reduce property taxes.
Vice President Cooper and Mayor Michicky introduced an ordinance on July 8 to amend the borough’s sales tax code to allow a seasonal sales tax rate intended to be net neutral for residents and that would be subject to voter approval.
Cooper said the tourism industry pays a disproportionate share of sales tax during peak months and that a seasonal rate would raise an estimated $4.47 million in summer revenue; she said that revenue, if adopted and used to offset property taxes, could translate to a roughly 0.42‑mill reduction in the borough’s property tax rate if the assembly chose to apply it in that way.
Supporters argued the change would shift more education funding to visitors during high‑tourism months and ease property tax pressure on year‑round residents, especially families and seniors. Opponents and some committee members cautioned that multiple ballot questions can dilute support and urged the assembly to consider only one revenue measure at a time.
Mayor Michicky and others emphasized the proposal would be an option for voters and that it is not intended to raise net revenue for the borough beyond the seasonal shift described; all sales tax revenue in the borough currently goes to education, according to speakers.
The committee set a public hearing on Aug. 5, 2025. No vote or formal action occurred at the meeting; the item remains an introduced ordinance under review.
