Kodiak Borough weighs natural resource excise tax on recreational harvest

The Kodiak Island Borough Assembly is weighing a flat fee on fish boxes and other containers of recreationally harvested natural resources. The Borough Attorney told the Assembly the charge could be adopted by ordinance without a public vote.

The discussion took place at the June 25 work session, where no formal action was taken. Assembly Member Jeffery Woods and Mayor Jared Griffin had submitted an agenda item request asking staff to draft and explore a natural resource excise tax ordinance modeled on the fish box tax implemented in Sitka, covering fish, game, and game products harvested recreationally in the Kodiak Island Borough. Staff had already prepared a draft ordinance for the Assembly's review, though Woods noted the proposal remained in early stages. "I see staff took direction well and did draft an ordinance," Woods said. "We're still very much in the discussion phase with this. No numbers are finalized."

Woods pointed to Sitka's existing charge as a reference point. "Sitka currently has a fish box tax where they levy $10 a box for seafood leaving the Sitka Borough," he said. "We have a much larger natural resource extraction footprint than Sitka does, I would wager to say."

The Borough Attorney advised that this type of levy can be categorized as an excise tax rather than a sales tax and, structured that way, would not require voter approval. That legal interpretation drew concern from at least one speaker. Valerie Erson, speaking for charter industry interests, objected to that approach. "We are also concerned with the idea that an excise tax is being discussed with the specific goal of bypassing a public vote," she said. "While we can appreciate that the Kodiak Island Borough needs to identify funding to support its activities, there should be an opportunity for the public and small businesses that would be impacted to have input into discussions on tax matters, review any proposals, and ultimately vote, as this could impact many families."

No rate, collection mechanism, or revenue allocation has been finalized. The Assembly could instruct staff or the Borough Attorney to prepare an ordinance for formal introduction at a future meeting.