Voters in Sitka will not consider raising bed taxes.
Sitka Assembly voted Aug. 14 against including a question on the ballot to raise transient lodging taxes. If Assembly members had voted in favor and it passed muster with voters, visitors would have paid a net 1 percent more on their hotel room or B&B in wintertime.
The goal of the ordinance, sponsored by Mayor Matthew Hunter and Kevin Knox, was to bring more revenue to the General Fund and Visitor Enhancement Fund.
Aspen Hotel Suites opened a location last year in Sitka.
For Aspen Hotel marketing director Carol Fraser and others who work in tourism oppose any further taxation on their industry outright.
“We won’t be able to get the cruise ships or the seaplanes here because we’re telling everybody we’d rather tax than have our doors open,” Fraser said. “I implore everyone tonight to vote no on this.”
The Assembly voted the measure down by a 3-4 vote. Members Steven Eisenbeisz, Ben Miyasato, Aaron Bean and Richard Wein voting against the measure.
Without raising sales taxes, Sitka cannot legally raise alcohol taxes in the future, which was confirmed by Attorney Brian Hanson, citing the 1991 case Lagos vs. the City of Sitka.
“You can’t have an alcohol tax that exceeds the normal sales tax you have in the community,” Hanson said.
On first reading, the Sitka Assembly approved eliminating an incentive credit for plug-in electric vehicles, which allowed drivers to get $120 off their electric bill annually.
They also voted – on first reading – to include alcohol, tobacco and marijuana on the list of products still taxed on sales tax free days.
As the meeting wound down, the Assembly opened the floor for public testimony about the city’s draft policy for art display in the William Stortz Gallery on City Hall’s second floor.
While allowing curator Norm Campbell to select the artwork, the policy states the gallery cannot feature art with “explicit sexual imagery, nudity, graphic depictions of violence, or any artwork that creates a hostile work environment for employees.”
A controversial show of political cartoons was taken down earlier this year.
Many on the Assembly found the draft policy’s (Stortz Gallery) language too vague and feared suppressing freedom of speech.
Artist Heather Bauscher agreed, saying the policy should focus less on censorship and more on a formal process to handle public pushback.
“A painting is just paint and canvas. It’s really up to people how that’s dealt with,” Bauscher said.
While saying he was a fan of art, Police Lt. Lance Ewers wondered whether City Hall was an appropriate place to hang it.
“You could hear clearly how much passion there is when it comes to art. I’m just going to throw it out there: maybe that’s not supposed to be at our City Hall,” Ewers said.
The conversation about the art gallery policy will continue at the Assembly’s Aug. 30 meeting.
One agenda item was not discussed because of time constraints.
The item was to consider conducting an economic impact analysis on Sitka Community Hospital and determining what any potential sale or closure would mean for the community’s bottom line.
