Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Marijuana Tax topic
No spam. Unsubscribe anytime.
Assembly discusses draft 3% marijuana tax, seeks attorney review and public vetting
Summary
Members reviewed a draft ordinance proposing a 3% marijuana excise to fund a community well-being fund; discussion centered on administrative burden, estimated revenue (about $135,000/year), city vs. borough application, ballot timing and necessary attorney-drafted ballot language.
Assembly members reviewed a draft ordinance to add a 3% excise on marijuana sales that would be directed to a community well-being fund for programs such as education, housing stability, re-entry and recovery.
Assembly member Jeff Woods (co-sponsor) described the proposal as revenue dedicated to public benefit and said other Alaska communities use similar structures. Members raised operational questions: whether the tax should apply uniformly to businesses inside and outside city limits, how to minimize paperwork burden for small operators, and whether quarterly remittance (to match other borough taxes) was appropriate.
Several members discussed the likely revenue: Mr. Johnson estimated that 2025 taxable marijuana sales were about $4.5 million and that a 3% tax would generate roughly $135,000–$140,000 annually. Mr. Ames said 3% would be reasonable if the paperwork could be simplified; Mr. Smiley and others noted the city currently collects sales tax on some marijuana businesses and sought clarity on overlap.
Timing and legal steps were emphasized: Nova (staff) noted the packet and attorney deadlines for a July timeline if members want a full ordinance and ballot proposition language ready for upcoming meetings. Assembly members instructed co-sponsors to work with staff to refine the draft and requested that the attorney prepare ballot language and advise whether the tax requires voter approval.
No ordinance was adopted; the Assembly asked staff and the borough attorney to review the draft, provide recommended language for a ballot proposition if necessary, and return with revised text and timeline options.
