Petersburg spent $1,122 in public money promoting its failed sales tax cap proposition

Petersburg Borough reported Monday that it spent $1,122 in public money on newspaper ads supporting its proposal to raise the sales tax cap, a measure voters rejected by 14 votes this month.

Alaska law lets cities and boroughs spend public money to influence a ballot question, but only if the funds "have been specifically appropriated for that purpose." Under state regulations, that means the governing body gave "notice in the public record that the purpose of the appropriation is to influence the outcome of that election."

Paid communications that are neutral information, like the ballot language or an even-handed summary, don't count.

The budget the Petersburg Assembly adopted in June includes a $4,000 line called "Ballot Information." The line doesn't name the proposition or say the money is meant to influence an election. The same line was in last year's budget.

Finance Director Jody Tow told the Assembly on Sept. 21 that she had "budgeted around $4,000 for advertising for ballot propositions" and had put sales tax cap material "in the paper and on Facebook," according to the meeting video. She said she didn't advertise the other sales tax question, a citizen initiative to exempt residents 70 and older, because the Assembly had voted against it.

The borough's report to the Alaska Public Offices Commission lists the borough itself as the source of the money and describes the spending as "SUPPORT: Sales Tax." It shows one check to Pilot Publishing for an "infographic in newspaper for two weeks," dated Oct. 22. It lists no Facebook spending. The borough registered with the commission Sept. 14, before the election.

Whether a general budget line like Petersburg's meets the "specifically appropriated" standard is a question for the commission, which hasn't addressed Petersburg's spending.

The proposition would have raised the most of a single purchase subject to Petersburg's 6% sales tax from $1,200 to $5,000, lifting the maximum tax on one purchase from $72 to $300. The Assembly sent it to voters on a 4-2 vote in June, saying the change would help pay for borough services, including the school district. Voters rejected it 559 to 545. The senior exemption the borough didn't advertise passed 565 to 545.