Sitka Assembly takes final vote Tuesday on a child care sales tax ballot question

The Sitka Assembly is scheduled to take a final vote Tuesday, Nov. 10, on an ordinance asking voters to raise the summer sales tax from 6% to 6.5% for child care. If the Assembly adopts it, the question goes to a special election Feb. 2, 2027.

The measure passed first reading Oct. 27 on a 6-1 vote, as Alaska News reported it would come up then. A report the Assembly commissioned from the Southeast Childcare Collective estimates licensed programs serve about 204 children, against demand for about 485 children ages 0 to 9.

If voters approve, the higher rate would apply April 1 through Sept. 30, starting in 2027. The 5% winter rate would not change. City staff estimate the half-point increase would raise about $1.19 million a year, according to the ballot proposition memo, against an Assembly goal of $1 million. A $10 summer purchase would carry 5 cents more in tax. The tax would expire after 10 years unless voters extend it.

Thor Christianson, Mayor Kevin Mosher and Katie Riley sponsor the measure. Christianson said a good share of the summer tax would not be paid by Sitka residents. Riley called it "a regressive tax" but said she would vote yes because something must be done and the community should weigh in.

Assembly member Darrell Windsor, the lone no vote, said in the meeting recording, "I'm having a hard time with this tax increase." He said he preferred 4% in winter and 7% in summer, with the half point coming out of that rate and more money coming from tourists.

Seven people commented before the first vote. Valorie Nelson opposed the tax. Laurinda Marcello, Lauren Wild and Annette Evans backed it. Skyleen Bottani, Robin Sherman and Joel Markis said they wanted child care help but doubted this tax would deliver it.

The money would go to a dedicated municipal fund, with an outside contractor managing the grants. After administration costs, the sponsors' memo offers a split as broad guidance: 60% for operating grants, 20% for workforce incentives, 15% for family scholarships and 5% for career and technical education. The 1% of the summer tax set aside for school buildings stays, according to a city FAQ.

Residents can speak for up to three minutes on any agenda item during public comment after the ordinance vote, near the end of the 6 pm meeting.