Kenai Peninsula Borough Assembly swiftly kills proposed tobacco tax

From right, Assembly members Brent Johnson, Bill Elam and Tyson Cox participate during a gathering connected June 4. (Ashlyn O’Hara/KDLL)

Kenai Peninsula Borough Assembly members changeable down a projected baccy taxation during their regular gathering this week.

Money generated by nan taxation would person been used, successful part, to salary for a caller kid attraction assistance program. A abstracted ordinance establishing that programme was withdrawn, though, aft nan baccy taxation failed.

The Assembly seldom fails to present an ordinance, which advances authorities to a nationalist proceeding and last vote.

The tobacco-related connection would person established a caller borough taxation specifically for products for illustration cigarettes, vapes and chewing tobacco. The taxation would person amounted to 5 cents per cigaret and 35% for wholesale products.

The borough’s finance section estimated nan taxation could bring successful $4 cardinal during nan first twelvemonth it was implemented and $4.2 cardinal nan twelvemonth after.

The money would person been divided respective ways, pinch nan largest chunk going to attraction projects astatine Kenai Peninsula Borough School District facilities. Another 3rd would person gone to nan caller assistance programme to support kid attraction accommodation connected nan Kenai Peninsula.

Five Assembly members, including Kenai typical Ryan Tunseth, voted against nan introduction, describing nan taxation arsenic regressive, a “sin tax” aliases a “nanny” policy.

“I dislike to usage nan word, benignant of nan ‘nanny state,’ but it seems for illustration possibly that’s what nan effort is,” he said. “And I really dislike being put successful a position wherever it appears that you either support programs for kid attraction aliases not.”

A nanny authorities refers to authorities policies that purpose to protect group from their ain bad behavior.

Tunseth challenged claims from sponsors that nan taxation would discourage young group from smoking. He likened nan connection to a taxation connected soda and cheeseburgers arsenic a measurement to trim obesity and salary for borough landfill operations. He said that doesn’t make sense.

“There’s respective issues I person pinch this. But number one, you cognize addiction doesn’t attraction astir socio-economic status,” he said. “And truthful this is going to wounded mediocre smokers a batch much than it will rich | smokers. And truthful successful a measurement I consciousness for illustration it’s astir apt a small spot regressive.”

Assembly President Brent Johnson was 1 of nan 3 sponsors of nan ordinances. He pointed to 2 section authorities efforts to limit smoking, for illustration nan assembly’s 2021 prohibition connected smoking successful borough buildings, and a authorities rule championed by then-Sen. Peter Micciche that outlawed smoking successful workplaces.

Micciche, now politician of nan Kenai Peninsula Borough, said his support of a smoking prohibition successful workplaces is different from a baccy tax. That’s because his measure limits someone’s behaviour erstwhile it negatively impacts different people.

“I don’t judge successful a nanny state,” he said. “People person nan correct to make those choices. And this is simply a nanny taxation for kid care, essentially, — neither that we should beryllium engaged in. This is simply a vulnerable crossroad for nan Kenai Peninsula Borough. It is simply a very, very vulnerable crossroad. We’re a second-class borough. People want it that way.”

Kenai Peninsula Borough Mayor Peter Micciche speaks during a borough assembly gathering connected June 4, 2024. (Ashlyn O’Hara/KDLL)

Miccicche suggested nan sponsors put their proposals up for a boroughwide vote, but speculated they’d beryllium soundly defeated. He said location are different ways nan borough tin reside a shortage of kid attraction services, specified arsenic by moving pinch existing organization groups and advocating for changes to authorities policies.

Assembly personnel Cindy Ecklund, nan premier sponsor of nan ordinances, pushed backmost connected nan thought of kid attraction arsenic a societal service.

“This is simply a measurement that we tin support nan system of our borough by opening up attraction centers and helping existing ones done paying utilities, nan acquisition requirements for licensure, nan wages, and hopefully lowering immoderate of nan costs to nan owners of those accommodation truthful possibly they could little nan costs to nan this families, which are — you whitethorn see societal services, but I deliberation that’s a acold reach,” she said.

After nan Assembly grounded to present nan baccy taxation ordinance, Ecklund withdrew nan kid attraction ordinance for consideration.