Assembly approves marijuana tax ordinance

PALMER — The Mat-Su Borough passed the long-awaited driveway standards ordinance and a marijuana sales tax regulation change at their regular meeting on Tuesday. Ordinance 20-085 provided for marijuana retail facilities to list the sales tax in their price amidst a national coin shortage.

“There is a national coin shortage. Most of our marijuana retail facilities are required under current code that they list their sales price and add the sales tax to it. This would allow them to list a price that incorporates the sales tax as part of the price,” said Mat-Su Borough Finance Director Cheyenne Heindel. “We are trying to align the code to make it easier for them to do business and not be in violation of borough code.”

In Fiscal Year 20, the Mat-Su Borough collected $1.2 million in sales tax from marijuana facilities, the only sales taxes collected on products in the borough. Heindel said that it is rare for marijuana retail facilities to pay in checks and most deposit their taxes in cash as sales are restricted to cash only. Heindel said that only one marijuana retail facility is not current on their taxes.

“For the most part our marijuana retail is very good at paying on time if not they have a big hammer out there called their state licensing and their state renewal and they can get that pulled if they’re not current on their tax,” said Heindel.

It was not previously permitted by borough code for retail facilities to list their products with a price that includes the borough sales tax Ordinance 20-085 passed with Assemblymen Jesse Sumner and George McKee in opposition.

“It doesn’t change the nature of the tax that it’s a sales tax. It does not change the nature that it is the customer who pays it and under the code the merchant is holding it in trust for us until they make their remittance,” said Borough Attorney Nick Spiropolous. “This is not mandating that they list the tax, it is an option that they can if they want to.”

Also presented to the Assembly and passed without objection was Ordinance 20-016 establishing driveway standards.

“The new chapter of code outlines a clear permitting process and establishes comprehensive standards for residential and commercial access onto Borough rights-of-way. The standards are intended to protect the safety and movement of the traveling public, minimize the cost of road maintenance, ensure proper drainage and protect borough infrastructure,” reads the ordinance.

Planning Director Alex Strawn presented an amendment with recommended changes from the Transportation Advisory Board and updated driveway permitting requirements from 1984.

Strawn also presented on Ordinance 20-025, shooting facility standards for commercial and nonprofit outdoor shooting facilities. Strawn said that the ordinance had failed the Planning Commission and was up for reintroduction on October 5 and could be included in the Assembly packet as soon as November 17.

“This ordinance gives the Mat-Su Borough the power to fine or shut down a shooting range over a complaint. No one will invest money into opening a shooting range if they know that they can be fined or shut down. Its already difficult to develop a shooting range without an ordinance,” said Esther Huddleston.

The Assembly also passed an ordinance appropriating $30,000 to the Sutton Fire Service Area to replace the chassis on the oldest vehicle in the Mat-Su Borough Emergency Services fleet from 1974.

“The truck we have now can’t respond toward Lake Louise because it can’t make it up the hills anymore so this is a big step for Sutton Fire Service Area,” said Department of Emergency Services Manager Ken Barkley.