Utqiagvik's council can pause the sales tax five more years without a vote

Utqiagvik has a 3 percent city sales tax in its code, but the city does not collect it. On Thursday the council can vote to continue that pause from July 1, 2026 until June 30, 2031, and six council members are enough to approve it without asking voters.

The six are Frances Olemaun, Kristin Gutierrez-Edwards, Craig Moore Jr., Martina R. Hopson, Heather Hopson and Sarah Tua'i. Mayor Asisaun Toovak introduced the measure, Ordinance 04-2026. The terms of Heather Hopson and Sarah Tua'i end next month.

A different tax does go to voters. Ordinance 03-2026 would raise the city marijuana tax from 8 percent to 10 percent, and that question is on the ballot Oct. 6.

State law explains the difference: Alaska Statute 29.45.670 says a new sales tax, or an increase in the rate, does not take effect until voters approve it at an election. The law does not mention pausing a tax. So the marijuana increase goes to the ballot, and the sales tax pause does not.

Several taxes continue either way, including the tax on alcohol brought into town and the tax on vaping products and nicotine products that the city's tobacco code does not already cover.

Utqiagvik has been renewing this pause one year at a time, most recently for July 2026 through June 2027. Section 4.20.005 of the city code still includes the original wording from 2004, when the tax was paused "in exchange for payment by the North Slope Borough of five hundred thousand dollars." Eight ordinances have changed that section since 1998.

The documents do not say what the tax is worth. The ordinance includes no financial estimate. The council packet does not say how much money the city gives up, how large a share of the city budget that is, or whether the borough still makes the payment described in the code. The council appointed a finance director, Maria C. Ortilla, in August.

The public hearing is at 5:30 pm Thursday in City Chambers. Residents can speak there.