On Oct. 13, Wrangell’s borough assembly advanced a temporary ordinance to waive the 7% sales tax for diesel and kerosene heating fuels delivered to homes this winter.
Since the start of the Iran war, the average cost of a gallon of diesel in the U.S. has risen about 72%. In Wrangell, a gallon of highway diesel currently goes for around $7.21 per gallon.
Borough Manager Mason Villarma addressed the assembly.
This allows for a little bit of reprieve for community members that are facing higher energy costs.
Assembly Member Dave Powell said that he worries it wouldn’t be fair to only offer a tax break to those heating their homes with fuel. Here he is at the meeting.
The only problem I have is that we are only targeting one entity of how to heat a home. I would suggest, if you want to do that in those months, that we look at removing the sales tax for any part of heating a house.
Electric heating is more affordable locally, according to Villarma, because Wrangell’s electricity rates are among the lowest in the state. He also says the borough regularly offers free firewood taken from borough properties to residents.
In response to concerns over potential lost tax revenue, Villarma said that the cost to the borough would be relatively nominal, at around $70,000 for the four months, while offering relief to residents.
He says that the point is to show that the borough cares about how rising costs are impacting residents.
Just letting people know that we do care and we do see what’s happening economically in the state due to higher energy prices and trying to provide some form of relief. I think it creates a sense of understanding and a good faith effort to try to meet community members where they’re at.
The assembly approved the waiver on first reading, and set a public hearing set for Oct. 27 before it is considered for a final vote.
