Proposal to raise borough sales-tax cap to $1,000 prompts debate; history of ballot defeats cited

The committee heard an introduction to ordinance 2026-020, a proposal to increase the Kenai Peninsula Borough's sales-tax cap from $500 to $1,000 and to exempt a class of residential rentals — specifically month‑to‑month rentals — subject to voter approval.

Assembly member Eklund, a sponsor of the measure, said the $500 cap was set in the 1960s and that it is reasonable to let voters weigh in on updating the cap. Assembly member Dunn, the other sponsor, said he had been approached by constituents seeking additional sales-tax revenue and argued that introduction is the step that allows the public to comment: "If we don't introduce it, the public doesn't get a chance to weigh in on it." Dunn noted prior, related measures and said introduction would allow public discussion.

Assembly member Eichert strongly opposed reintroducing the idea without substantive changes and recited a history of previous, similar measures that failed at the polls. He cited a sequence of defeats (including 2011, 2016, 2017, 2019 and last year) and warned against repeatedly asking the same question. Eichert said voters have rejected similar proposals multiple times and urged the assembly to respect those results: "We're basically giving a giant middle finger to our voters by bringing them essentially the same thing 5 times in 10 years," he said.

Other members asked procedural and strategic questions: Cooper suggested checking community calendars and noting that multiple ballot measures can increase the chance of failure; the mayor urged the assembly to consider public trust and the appearance of repeatedly asking residents the same question. The committee did not vote; members discussed possibly pulling the item from the consent agenda so voters can be heard at the public hearing.