More than 63% of Sitka voters cast ballots Oct. 3 to approve a 1% seasonal sales tax increase to provide more funding for school repairs and construction.
The ballot measure will raise the sales tax from 5% to 6% from April 1 through Sept. 30, starting next year.
The sales tax passed 1,058 to 594.
Sitka had a 1% seasonal sales tax for 20 years to cover the city’s share of school construction bonds, but it ended June 30 this year when the tax had raised enough to pay off the bonds. The new seasonal tax addition approved by voters this month is permanent and will raise an estimated $2.4 million annually for school construction, repairs and maintenance.
City Administrator John Leach said the extra tax allows Sitka to establish a sustainable source of funding for school buildings. “By collecting this seasonal sales tax primarily from visitors during the summer months, we can ensure that those who benefit from our community contribute to its betterment,” he said. “This (proposition) not only strengthens our education system but supports the overall well-being of Sitka.”
School Board member Tristan Guevin said the dedicated tax will benefit more than schools. “The first thing to acknowledge is that this isn’t just about schools, it’s about city infrastructure in general and being able to put away enough to pay for what we have.”
Guevin said the city has infrastructure needs in all departments, including water, wastewater, solid waste, electricity and harbors. “For years we relied on state funding to cover our infrastructure or to allow us not to increase rates to put aside funds for maintenance,” Guevin said.
But schools and cities aren’t getting the state funding they used to receive, such as the bond debt reimbursement program that helped offset local costs for school construction.
“Beyond school infrastructure we need to look at local ways of raising revenues for the schools if we want to maintain what we currently have and continue to provide a high-quality education,” Guevin said.
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