The Fairbanks City Council passed a resolution Monday asking the Fairbanks North Star Borough to exempt the municipality from borough tobacco excise tax rates.
“It has placed an economic imbalance inside the city versus outside the city. That’s what this tax did,” Fairbanks Mayor David Pruhs said Monday. “This is the first time ever.” Not all rates work that way, namely property taxes and the tobacco excise tax. Here, those rates stack for each level of government at which they’re levied, including the state, which charges its own 75% excise tax on many tobacco products.
Those two pieces of legislation entail the combined local tax rate within Fairbanks will have jumped from 16% to 40% by July 2024, though the borough is responsible for only half that increase. In the first month of 2024, the city brought in $202,000 in tobacco excise tax revenues, compared to $84,000 in January of 2023, according to city records. That’s a 140% increase.
Unlike taxes paid at the point-of-sale, an excise tax is forked over by the wholesaler bringing a taxed product into a defined area. In the borough, only seven businesses have historically footed those taxes directly.The most recent data circulating in both assembly and city chambers shows 88% of the collected taxes in FNSB derive from wholesale exchanges within Fairbanks city limits. The rest come from North Pole or areas outside either municipality.
Fairbanks North Star Borough Borough Assembly Bryce Ward Tobacco Tax Alaska Alaska Tobacco Taxes Tobacco Vapes Vape Fairbanks Fairbanks Vape Shops Rat Pack Cigar Costco Fred Meyer Faribanks
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Source: wfaa - 🏆 543. / 51 Read more »
Source: cleveland19news - 🏆 70. / 68 Read more »
Source: kgun9 - 🏆 584. / 51 Read more »
Source: 6abc - 🏆 250. / 63 Read more »
Source: LAist - 🏆 606. / 51 Read more »
Source: sltrib - 🏆 316. / 61 Read more »