Haines Borough town hall hears petition to pause seasonal sales tax, explores targeted fuel and aid options

Haines Borough officials and residents met at a virtual town hall to discuss a petition signed by about 500 people asking the borough to pause its new seasonal sales tax and to consider other measures to ease rising costs tied to fuel, freight and utilities.

The mayor opened by summarizing cost drivers that residents and businesses are feeling, including higher petroleum prices, freight and air surcharges and a pending electric-rate case before the state regulatory commission. "There was, I believe, a 17% fuel surcharge on freight and air transportation," the mayor said, and he and other officials cited reduced ferry service and the loss of competing air carriers as added pressures.

Assembly member Smith told the meeting the borough must target any relief rather than provide an across-the-board subsidy. "Everything that comes into this town...is gonna go up significantly just across the board," Smith said of recent surcharge increases, noting that borough funds "belong to the people" and that relief should focus on those most in need.

Residents gave firsthand accounts of the effects. Thomas described frequent freight delays and high overnight costs: he said a $60 parts purchase incurred about $209 in priority postage, and he urged the assembly to examine monopolies in essential services. "We used to have competing fuel suppliers," Thomas said; "now these monopolies for essential services...don't serve us well."

Assembly members and staff laid out several possible responses. Miss Stewart explained an existing nonprofit sales-tax exemption card: it exempts purchases made for nonprofit purposes, is valid for roughly one year and historically cost about $27.50 (she added the card’s fee calculation is indexed to the tax on a stated amount of purchases). Borough code also includes a mechanism for temporary, targeted exemptions: Speaker 7 read a code provision described in the meeting as "3.8005 0, number 32," which says the assembly may adopt a resolution to temporarily exempt sales of specified goods or services for a specified period not to exceed six consecutive months.

Officials discussed two broad approaches: short-term, targeted sales-tax holidays (for example, on motor fuels or heating fuel) and means-tested relief. Some participants suggested piggybacking eligibility on existing programs such as SNAP or the Permanent Fund Dividend so retailers could use a simple verification at checkout. "You hit the button and it's a nonprofit transaction," one participant suggested; others warned about the risk of fraud or of subsidizing visitors during peak season if exemptions are too broad.

Several speakers urged the borough to also fund and coordinate with local food banks and pantries to ensure aid reaches those most in need. The assembly agreed the costs of any exemption would need to be covered by savings elsewhere to avoid cutting services; officials repeatedly said they would not support relief that reduced essential services such as school funding or policing.

No formal motion or vote was recorded at the meeting. Participants closed by noting the discussion had generated actionable ideas — a short-term fuel exemption or holiday, targeted rebates tied to existing benefit programs, additional borough support for food programs, and exploring ways to encourage fuel-supplier competition — and by asking staff to return with implementation options and cost estimates.

The borough did not set a date for a decision during the meeting; officials said staff would analyze feasibility and administrative burden and report back to the assembly.