Rotary Thanks
Dear Editor: The Sitka Babies and Books Board would like to thank the Sitka rotary Board and members for their recent contribution to our organization. The Sitka Rotary Club has bee a supporter of Sitka Babies and Books sine its inception in 1991. Your continuing commitment to our organization helps us support literacy by offering books, programs and education to the families of Sitka’s young children.
Sitka Babies and Books
Board Members
Property Tax Increase
Dear Editor: I have attended, spoke and offered written suggestions to the city Assembly concerning our financial situation and in particular the future 2 mill property tax increase.
The city gave an example a few issues past indicating a homeowner with a property valued at $200,000 and a homestead exemption of $50,000. This issue was front page July 13, 2016. I would like to compare this issue with Aug. 10, 2016, issue. If you notice the city fathers would like to dangle the proverbial apple of up to $50,000 in homestead exemption and the elimination of grocery tax to smoke screen the voting public in favor of the 2-mill increase. The current Aug. 10 issue indicates a possible homestead exemption UPTO $50,000 the big question is who, how and in what amount would that be determined. That is a pretty open equation due the fact most if not all real property went through a revaluation in the last 12 months.
One can also see no real mention of how and when they MIGHT remove the grocery tax. Also understand grocery tax means food items only nonfood products will always be taxed. When you take your own survey of tax savings or cost look at food staples only. My examples of cost is based on a household with real property valuation including a solid $50,000 homestead exemption indicating in favor toward the city. It is not wrong to gain taxes to operate the city government, but this will give you understanding as to what your projected cost would be with the proposed change in millage rates.
Our main problem with in our fair city is spending and those in charge of the spending. With talk of power increases up-to 19 percent at a time of business cutbacks and cost of health insurance etc. some families are working two and three jobs to make ends meet. The cost related to these increases could over burden our working public and possibly reduce our population due to cost of living. We have so many ways to increase revenue and reduce spending by making some adjustments to our sales tax codes along with city government to tighten their belts.
I worked and retired from state government after 16 years in revenue audits and investigations. Sitka needs to adopt some of the proven tax codes used in larger municipalities that build good solid revenue. They do not have to hire special consulting groups just make minor adjustments to bring in needed revenue.
I presented to the city Assembly in July making a change in one such sales and use tax code could bring in over $1,000,000 per year in additional revenue.
Consider what the 2-mill property tax would do and how it would affect a household of average real -estate based on the following example.
Family of four with a home valued at $350,000. Add 2-mill tax increase after a $50,000 homestead exemption. Taxable $350,000 - $50,000 = $300,000 X .0020 = $600 in additional tax with the $50,000 exemption.
The same family estimated grocery expense less any non-food items (staples) $150 week X 52 weeks = $7,800. year X .06% = $468.
The example does not take into effect Thanksgiving, Christmas special days such as birthdays etc.
I interviewed numerous families and cost varied. If a person is frugal the example is more lopsided in favor of the city.
Cost in example $600-$480 = $120 additional cost.
Same example: A couple or single household with food expense of only $100 per week with same scenario of property value. $100 X 52 = $5,200 X .06% = $312 tax.
Cost in example is $600-$312 or $288 additional cost.
You combine these examples with the talk of increases in electric usage of 19 percent or higher.
The cost of living just went through the roof literally speaking.
Once again I say review the sales and use tax statutes and codes to correct the problem now and in future years.
Joe N. Meador, Sitka
