The City of Ketchikan collected more than half a million more in sales taxes than expected last year.
Final sales tax numbers for 2018 were recently released in a memo from City Finance Director Bob Newell. He writes that, last year, Ketchikan collected about $12.5 million in sales taxes. That’s about $600,000 more than the city had projected, and is a new record high.
The previous record was in 2017. Last year’s numbers exceeded that by about $500,000.
Newell writes that holiday retail sales appeared to be up, and there likely were more heating-fuel purchases due to cold weather last winter. The summer months showed the largest increases in sales tax, driven largely by tourism-related spending.
The City of Ketchikan charges a 4-percent sales tax. The Ketchikan Gateway Borough has a separate 2.5 percent tax, so purchases inside city limits have a 6.5 percent total sales tax.
The borough’s final sales tax numbers for 2018 were not available yet. The borough has a different schedule for making those reports.