Kodiak, Alaska (KINY) Sales taxes would rise a whopping 300% in proposal approved Monday.
Fighting a near $2.8 million budget deficit the Kodiak City Council voted to raise the city's sales tax cap by 300 percent.
The sales tax will be collected on the first $3,000 of a transaction. Previously the sales tax had been collected on the first $750. This increases the maximum amount of sales tax on a transaction from $52.50 to $210.
The council did vote to exempt sales taxes collected on residential and commercial property rentals. The council agreed the increase will help to fund future capital needs like equipment and vehicles, and help replace St. Herman Harbor.
There was debate in the community on how the move will affect the economy and local business retail sales.