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Council approves first reading of 1% transient-tax increase; amends to include motorized watercraft rentals
Summary
On first reading the council approved Ordinance 12-40 to raise certain sales-tax rates from 13% to 14% (transient lodging and select non-essentials). Council amended the ordinance to include motorized watercraft rentals and carried the first-reading vote after discussion of enforcement and business impacts.
Council introduced Ordinance 12-40 to increase the sales tax rate from 13% to 14% for transient lodging and specified nonessential categories. The ordinance as introduced excluded watercraft rentals, but after debate a motion to change the language to include motorized watercraft rentals passed as an amendment.
A local business owner urged caution about combining a fuel surcharge with additional tax but said he would nonetheless support the ordinance because the city needs more revenue. "I will support this because I feel like at this point, Cordova is desperately in need of a revenue increase," the speaker said, while adding that taxing tourists and transient services is preferable to increasing mill rates for locals.
Councilors discussed enforcement challenges and whether nonmotorized craft should be treated differently. One council member moved the amendment to change the wording from excluding to including watercraft rentals; the amendment carried and the first reading was adopted on voice vote. Staff said the amended measure would return for a second reading and final adoption at a later meeting (or on a special meeting date).
