Borough Assembly votes down bed tax

A new public safety building, permits for potential marijuana facilities, and a marijuana sales tax question put before voters, all passed at this week’s Assembly meeting for the Matanuska-Susitna Borough. The Assembly narrowly voted down increasing the visitor bed tax.

Marijuana Sales Tax

The Assembly approved an ordinance that puts before voters on the Oct. 4 ballot the question of whether to impose a 5 percent area-wide retail sales tax on marijuana and pot products. Cities are partially exempted up to the level of their levied sales tax, according to an adopted amendment made by Assembly Member Dan Mayfield. Wasilla has a 2 percent sales tax, Houston a 2 percent sales tax, Palmer a 3 percent sales tax. The tax to the Borough would range from a 2 percent to a 3 percent tax. Assembly Member George McKee voted no.

The Assembly also approved license referrals and permits for marijuana-related facilities. Assembly Member Randall Kowalke drafted an amendment on the ordinance for permits with Borough Development Services Manager Alex Strawn. Kowalke said, ‘it’s not perfect but as good as it gets with no experience.’

Assembly Member Jim Sykes added amendments.

The Assembly approved the construction of a public safety facility with training grounds and a warehouse near Vine Road and Knik Goose Bay Road for up to $5 million, paid by lease certificates of participation. The project has been in the planning stages for years and is located in the Knik-Fairview community, the fifth largest population in Alaska. Assembly Member George McKee voted against.