Business owner objects to borough-wide marijuana excise tax; assembly advances ordinance to public hearing

A local business owner sharply criticized a proposed borough-wide marijuana excise tax on July 16, and the Kodiak Island Borough Assembly voted 4-1 to advance the ordinance (FY2027-05) to public hearing.

Janice Stevens, who identified herself as owner of Wildflower and a certified public accountant, told the assembly she was "continually perplexed by our local government's proclivity to choose marijuana as a sin of choice when brainstorming ways to raise revenue" and urged the assembly not to single out marijuana given that alcohol and tobacco outsell it and impose substantial public-safety and health costs. Stevens also said the state of Alaska already "has the highest marijuana tax in the nation," warned that ordinance calculations were "seriously flawed," and raised privacy concerns because sales-tax reports could reveal income from the two local marijuana businesses.

Assembly members discussed the ordinance’s language and scope. Mister Woods said a 3% consumer tax "is not a significant burden" in his view and supported forwarding the measure to voters; Mister Gardner said he was generally opposed to new taxes but might still support sending the question to the ballot so voters decide. Miss Roberts noted attorney and finance director comments were included in the packet and suggested inserting the relevant Alaska statute into the ordinance to clarify the definition of taxed products, responding to concerns that the current draft's definition could be overly broad and include hemp-derived products.

After debate, the assembly voted to advance the ordinance to public hearing (roll call 4 yes, 1 no). If moved forward, the ordinance would establish an area-wide marijuana excise tax, create a community well-being fund, and provide for voter approval.