ALLIANCE OF CONCERNED TAXPAYERS (ACT)
NEWS
RELEASE
For
Immediate Release:
A three
week marathon signature collecting effort
ended Tuesday afternoon when the Alliance of
Concerned Taxpayers (ACT) filed their sales
tax initiative with the Kenai Peninsula
Borough Clerk’s office.
If
approved by voters in the October 2005
municipal election, this initiative will
freeze the borough wide sales tax at the
current rate of 2% on the first $500 in
retail sales and require a 60% voter
approval for any future sales tax
increases.
Soldotna, Alaska (July 26, 2005)
– During a three week window in July, 31
volunteers collected about 2,200 signatures
in an attempt to put a sales tax vote on the
October 2005 municipal ballot. The Borough
Clerk now has until August 9 to verify the
signatures of at least 1,530 registered
voters. Once the signatures have been
verified, the petition will be certified and
placed on the fall ballot.
“This is a record number of signatures for
such a short period of time. A July
petition drive in the middle of a busy
summer was a challenge, to say the least.
However, people were very motivated by the
idea of voting on tax increases instead of
having them dictated by the assembly.
Almost everyone I saw was anxious to sign my
booklet” said Fred Sturman an Initiative
Alternate Sponsor.
The Alaska Constitution, State Statutes, and
Borough Code make it possible for citizens
to pass or repeal laws through the
initiative and referendum process. Elected
officials that fail to fulfill their oath of
office can be removed using a recall. These
three remedies are in place as a safe guard
for the public to use against corruption,
incompetence, or failure on the part of
elected officials to act in the best
interest of the citizens they were elected
to represent. This “check and balance” is a
critical part of the political process that
should only be used as a last resort.
This ACT sales tax initiative was filed
after months of discussion and public debate
failed to convince assembly members of the
need to more efficiently manage borough
cost. With the passage of Ordinance 2005-09
in June, the assembly decided that
increasing taxes was easier than controlling
expenses.
Ordinance 2005-09 included a sales tax rate
increase from 2% to 3% which according to
Alaska Statutes 29.45.670 should require a
public vote. “We asked the assembly why
their sales tax increase didn’t trigger a
vote. We were told it was unnecessary since
voters approved it in the 60’s”, explained
Mike McBride, ACT President. “A vote taken
almost 40 years ago does not represent
approval by people living on the peninsula
today”, McBride continued. AS 29.45.670
states that, “A 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”. By filing this sales tax
initiative ACT will give the public a vote
which the assembly has denied them.
“When the assembly passed a sales tax
increase in early June, our attorneys gave
us two options. One was to challenge the
borough in court for failing to follow state
law, and the second option was to file an
initiative and place the issue before
voters. Because of the high cost of
litigation, we chose the second option. If
approved in October, any future sales tax
increases will be decided by the people,
which is the way it should be”, said
Patricia Falkenberg, Initiative Prime
Sponsor. Falkenberg went on to say,
“Being involved in the initiative process
has taught me that a small group of
community-minded, committed people can make
a big difference”.
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