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Assembly considers data gathering on proposed marijuana excise tax after retailers voice concerns
Summary
Assemblymembers discussed a proposed borough marijuana excise tax to diversify revenue and fund health/safety programs; local retailer Jack Shockler called the idea harmful to small operators and members urged staff to gather sales baseline, economic impact, and legal guidance before proceeding.
Assemblymember Caroline Roberts introduced the idea of studying a marijuana excise tax to diversify revenue and create a dedicated fund for community health and safety programs. Roberts said she has asked clerks to gather baseline sales data and to consult local businesses before the assembly considers any proposal.
Roberts framed the proposal as a targeted revenue source: “I think we need some realistic data going into this decision,” she said, and suggested earmarking proceeds for programs addressing substance‑use impacts and a three‑year review of the tax’s effects.
A caller who identified himself as a local retail cannabis business owner, Jack Shockler, urged the assembly to oppose an excise tax, saying small Kodiak retailers operate on thin margins and pay high federal taxes, travel costs, and licensing. “Taxing us… is barking up the wrong financial tree,” Shockler said, and warned that a tax could push sales to outside visitors in tourism communities rather than Kodiak’s local market.
Assemblymembers raised multiple concerns: potential double taxation with municipal sales tax already paid in some locations, the risk that overly high excise rates could push customers to illicit sources, and the disproportionate effect on small local operators who face high operating costs (licensing, transport). Mr. Woods and others emphasized the need for purpose‑driven tax proposals and for engaging retailers in planning.
No rate, structure, or ordinance was proposed. The assembly directed staff to collect data — local sales volumes, current tax incidence, business impact analysis, and models used by other Alaskan municipalities — and to return with that information for a more informed discussion.
