Ketchikan could see raise in sales tax cap

    Residents of the Ketchikan Gateway Borough could see an increase next year in the borough's $1,000 sales tax cap that was put in place nearly 40 years ago.

    KETCHIKAN, Alaska (AP) — Residents of the Ketchikan Gateway Borough could see an increase next year in the borough's $1,000 sales tax cap that was put in place nearly 40 years ago.

    The Ketchikan Daily News reports that Borough Assembly member Stephen Bradford said Friday he plans to introduce an ordinance that would raise the cap to $3,000 for the city of Ketchikan and the borough. The current sales tax cap, established in 1978, means that only the first $1,000 of a single purchase is taxable.

    Borough Manager Dan Bockhorst says if today's cap were adjusted for inflation, it would stand at more than $3,600.

    The call for an increased sales tax cap in Ketchikan comes after Juneau raised its cap from $7,500 to $12,000 and Sitka doubled its cap to $3,000.

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