ALLIANCE OF CONCERNED TAXPAYERS (ACT)
NEWS
RELEASE
For
Immediate Release:
On
Wednesday, the Alliance of Concerned
Taxpayers filed two initiatives and a
referendum with the Kenai Peninsula Borough
Clerk’s office that will give the public a
greater voice in their future tax bills.
The initiatives set a borough wide sales tax
cap at 2%. The referendum will repeal a
sales tax increase which passed the assembly
Tuesday night.
Soldotna, Alaska (June 8, 2005)
– As part of an ongoing effort to control
new or increased taxes, the Alliance of
Concerned Taxpayers (ACT) today filed two
initiatives and one referendum with the
Kenai Peninsula Borough Clerks office. The
initiative ACT XVIII was written to lower
the borough wide sales tax cap to 2%. The
initiative ACT XIX caps sales tax at 2%, but
also requires that any future increase above
2% be approved by at least 60% of voters to
pass. Sponsors plan to place one of these
initiatives on the fall ballot where the
public will decide the fate of any future
sales tax increases.
The referendum ACT XI was written in
response to Mayor Bagley’s “revenue
enhancement” Ordinance 2005-09 which passed
the borough assembly at their last meeting.
Ordinance 2005-09 allows for an increase in
borough wide sales tax to 3% among other
issues. If approved by voters this fall,
the referendum will repeal Ordinance 2005-09
and the borough wide sales tax will remain
at the current 2% rate.
“The intent of these initiatives is not
eliminating future tax hikes, but to require
voter approval for those increases as
required by law” said Fred Sturman an
Initiative Alternate Sponsor.
“The Bagley administration has claimed that
a public vote is not required to raise sales
tax and Ordinance 2005-09 is just another
example of their willingness to ignore laws
they don’t like. Alaska State Statutes
Section 29.45.670 clearly states that ‘new
sales and use tax or an increase in the rate
of levy of a sales tax approved by ordinance
does not take effect until ratified by a
majority of the voters at an election’.
This was clearly not the intent of Mayor
Bagley who has actively opposed public
participation in the government process,”
said Mike McBride, ACT President and
Referendum Prime Sponsor
For convenience purposes the initiatives and
referendum were submitted with a minimum
number of co-sponsors. Co-sponsors are the
people who later in the process will be
authorized to collect the required 1,530
signatures from registered voters of the
borough in the 90 days allowed by law. Once
the required 1,530 signatures have been
certified, these issues will be placed on
the fall municipal ballot where the public
will decide their future.
“I believe that significant tax increases,
such as raising the sales tax rate from 2%
to 3%, a 50% increase, should be approved by
the people who will be forced to shoulder
the additional tax burden. I’ve seen no
real justification for such large tax
increases and question why the borough
administration chooses to raise taxes,
rather than downsize borough government”
said James Price, ACT Secretary and
Referendum Alternate Sponsor.
The borough has until June 22nd
to verify co-sponsor signatures and to
approve or reject the initiatives and
referendum. During that time ACT organizers
plan to continue collecting co-sponsors to
help with the next phase. ACT currently has
almost 200 people from around the borough
that have agreed to help gather signatures
once the initiatives and referendum are
approved by the Borough Clerk.
“Tax increases should always be the last
resort to balance any budget, not the
first. Instead of only requiring five
assembly people to make these decisions that
can dramatically affect our taxes, any
increase in the cost of local government
should be approved by the majority of those
paying the bills. I don’t think most people
want five people deciding their fate,” said
Vicki Pate, ACT Vice President.
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