City and Borough of Juneau
Finance Committee Meeting
January 7, 2004

5 p.m., Chambers

I. Call to Order

II. Roll Call

III. Approval of Minutes
- Minutes of November 5, 2003

IV. Pull Tab Operations, Local and State Taxation
The City and Borough of Juneau levies the 5% general sales tax on the retail sales of pull tabs. We are currently projecting that we will collect in excess of $600,000 in sales tax revenues on pull tabs sales this year. Over the past few years the pull tab permit holders and operators have indicated that the 5% sales tax levy has made it difficult to meet the State’s operating provisions. The CBJ Assembly has reviewed, over the past few years, the application of sales tax on pull tab sales. To date the Assembly has elected to not exempt or modify the sales tax levy on pull tab sales.

Last year the State Legislature introduced legislation that would increase the state tax levy on pull tab sales and preclude the CBJ from levying a sales tax. This year it is likely the State will again introduce legislation to increase the state tax on pull tab operations. The meeting with the pull tab permit holders and operators will be to discuss the issues and implications of any increases in the state tax levy and to work out an understanding.

V. Alaska Committee Funding Request
We have received a $390,000 budget (see detail in the packet) and a $268,000 funding distribution request from the Alaska Committee. The funding request, at this time, is as follows –

The budget submitted by the Alaska Committee agrees with the $390,000 approved by the Assembly for the FY04 Better Capital City Account budget. However, we have distributed $10,000 from the account to provide support to the Glory Hole. We are requesting the Finance Committee approve the Alaska Committee budget at $380,000 and authorize the manager to pay bills from the "Better Capital City" account upon submittal by the Committee.