At its Aug. 25 meeting, the Bethel City Council postponed voting on a tax on sugary beverages until December.
Council member Hugh Dyment made the motion, saying that residents should have time to weigh the pros and cons of the tax, which would be used to fund recreation resources for the city. Also, by December, the city will have a better idea of how much revenue the online sales tax, which becomes effective Sep. 1, will bring in.
The sugary beverage tax proved to be a provocative issue. Seven Bethel residents spoke about it during “People to be Heard,” with three in favor and four against.
Council member Michelle DeWitt, who introduced the tax, is a member of the committee that oversees the pool at the Yukon Kuskokwim Fitness Center. She said that the center runs a yearly deficit of $130,000. The fitness center is supported through membership fees and 0.5% of the city’s sales tax. She said that the revenue from the sugary beverage tax would also allow the city to look at building an indoor basketball gym, and expanding the boardwalks and trails in town. Plus, Dewitt argued, the tax would only affect one expenditure.
“Something that people could more easily avoid if they don't want to purchase those items, as opposed to, like, a blanket sales tax,” DeWitt said.
But residents who called in to the meeting said the tax would disproportionately target lower-income households. A study published through the Urban-Brookings Tax Policy Center found that lower-income adults consume 40% more sugary drinks than higher-income adults.
While council member Hugh Dyment agreed that the city should work on creating new recreational facilities, he had a problem with a tax that requires lower-income families to pay more than their fair share.
“So what we're doing here is asking a small set of people to bear the cost of a common good,” Dyment said.
The council will revisit the sugary beverage tax in December, but Dyment won’t be a member then. He chose not to run for re-election.
Mayor Perry Barr and council member Michelle DeWitt are running for re-election. along with newcomer Rose “Sugar” Henderson. Plus, there is one more write-in candidate: Conrad “CJ” McCormick. McCormick didn’t submit his paperwork in time to get his name on the ballot.
