Proposed tax in Fairbanks shot down by Assembly

The Fairbanks Borough Assembly voted down a proposed gross receipts tax last night. Ordinance co-sponsor Tim Beck says the tax failed to move forward following questions about how it would affect economic development. Despite more public testimony against it, the Assembly will continue to look at a sales tax. The sales tax is being considered as a way to lower the borough property tax rate. A voter-imposed revenue cap limits the amount of money the borough can collect through taxes, and City councilman Jerry Cleworth testified last night that adding a sales tax would not benefit the Borough as a whole. The assembly will take up the sales tax issue at its next meeting, August 7, 2007.

Libby Casey and Dan Bross, KUAC – Fairbanks