Kodiak Borough assembly scheduled to introduce marijuana tax measure for October ballot

The Kodiak Island Borough Assembly is scheduled to introduce a 3% areawide excise tax on retail marijuana sales Thursday, a measure that would go before borough voters on Oct. 6 and, if approved, take effect Jan. 1, 2027.

Assembly Members Caroline Roberts and Jeffery Woods are sponsoring the ordinance. Revenue would flow into a new Community Well-Being Fund, appropriated by the Assembly for programs, services, projects, and grants related to health, education, and economic development. City of Kodiak finance data shows marijuana taxable sales have ranged from roughly $4.55 million to $5.04 million annually over the past five years, putting the projected borough take at $135,000 to $150,000 per year.

Woods described the intent at a June 25 work session. "Biggest item for me is what is being proposed currently, that any potential revenue be used strictly for public benefit, for projects, services, and grants that promote health, safety, and well-being, like education, housing stability, reentry, recovery," he said. "We currently do not collect a tax for marijuana."

At the same session, it was noted that the City of Kodiak charges 5% on marijuana sales at its three distribution stores. Adding the borough's proposed 3% rate on top of the city's existing 5% would bring the combined local burden to 8% for city-based retailers.

Path to the Ballot

Under Alaska Statute 29.45.670, the excise tax requires ratification by a majority of voters before it can take effect. Thursday's action is introduction only. The proposed legislative timeline calls for a public hearing and possible adoption on Aug. 6 to certify the measure for the October ballot. If voters approve, the Assembly would begin appropriating from the Community Well-Being Fund in the 2027 fiscal year. The ordinance also requires the Assembly to review the tax and the fund within three years of implementation.