Nome council tables pull-tab tax change over mayor's possible conflict

The Nome Common Council voted 5-0 Monday to table a proposed pull-tab tax change before its first reading. The delay awaits a legal opinion on whether Mayor Amy Hughes has a conflict of interest, since she serves as president of the Nome Chamber of Commerce.

A council member said the chamber stands to gain substantial income from pull-tab revenue. Hughes disputed a conflict. "Chamber of Commerce does use pull-tab funds to fund its operations," she said. The ordinance remains tabled until the council votes to take it up again.

The proposal, detailed in a June 8 meeting packet, would tax the ideal net of each pull-tab series instead of gross ticket sales. Chamber representative Paul Costell cited results ranging from about $40 to $42 earned per game to $81 lost. He said pausing months of work was unnecessary, since a first reading requires no vote.

Alex Thompson of the Bering Sea Lions Club warned that charities quitting pull-tabs would leave the city with "zero tax revenue." Nonresident Jeremy Jacobson asked how the city would replace roughly a quarter-million dollars in lost revenue. Resident Jennifer Reader said existing rules already address conflicts of interest. "This is completely avoidable," she said.

A broader council revenue workshop is scheduled for Oct. 26.