Nome voters will decide Tuesday whether to adopt the so-called “Sin Tax,” a citywide tax increase on all alcohol and tobacco products.
If passed, Proposition 1 would raise taxes on alcoholic beverages and tobacco products in Nome from 5 to 8 percent. City officials say the tax increase on alcohol alone could bolster city coffers by up to $150,000 per year. Nome voters will also decide who will occupy seats on the utility board, the city council, and the school board.
Nome Mayor Denise Michels said that money could then be spent improving services that relate directly to alcohol and tobacco use in the community. She cited a direct correlation between alcohol consumption and police response in Nome.
According to city data, calls for emergency services in Nome averaged 617 per month between May and September 2013. Calls for services that were alcohol related during the same period averaged 241 per month — roughly 39 percent of the total call volume.
Similarly, arrests averaged 50 per month, while arrests related to alcohol averaged 42 per month — about 87 percent of all arrests made.
Bill Howell is the owner of Airport Pizza, a restaurant that also sells beer and wine in Nome. He said the tax wouldn’t significantly impact his business; it would raise the price of one beer by about 24 cents. But he opposed a tax that targets specific products, and therefore specific business owners.
“If you’re going to tax, I don’t believe that it’s wise to target specific areas,” said Howell. “If you need more revenues, for crying out loud, just increase the sales tax.”
While Howell agreed with a need for police and educational funding, he was skeptical about the proposed tax’s true impact on social services. He said it’s unlikely a price hike of 24 cents will keep his customers from ordering a beer.
“It’s not going to be a detractor or a deterrent,” said Howell. “You’re not going to stop people from drinking. It just ain’t going to happen.”
City clerk Tom Moran said a higher, and perhaps more prohibitive, tax increase was proposed in city council sessions earlier this year, but did not pass a vote.
As for how the revenue from any “sin tax” will be spent, Michels said she’d like to see it go toward the city’s education and safety budget. But visitors to the ballot box Tuesday will only decide whether or not taxes should be raised — not how that money will be spent.
