Petersburg’s Borough Assembly is asking for public feedback on a potential increase to the Borough’s maximum collectible sales tax. 

At its meeting today, the public will get a chance to comment on an ordinance that would raise the maximum amount of a single transaction that the Borough can tax by 24%. Currently, it can only collect under $1,200 from single-purchase transactions. A new ordinance would bump that ceiling up to $5,000. 

The Borough hasn’t increased its maximum collectible sales tax in over two decades. This proposed increase is intended to support Borough services, including the Petersburg School District. If the Assembly passes the ordinance in three readings, it’ll go before the public as a ballot proposition in the October municipal election. 

The Assembly is also scheduled to take a final vote on an ordinance to raise the Borough’s tax on room rentals from four percent to seven percent. The transient room tax is applied to rooms that are rented at Petersburg hotels, motels, lodges, and Airbnbs for fewer than 30 days. 

The Borough estimates that bumping the tax up to seven percent would bring in about $53,000 in additional revenue. And another ordinance on tonight’s agenda would dedicate those extra funds to tourism-related services around town. That could include things like informational signs, park maintenance, and beautification projects downtown. If the room tax increase passes a final reading today, voters will get to decide whether to adopt it in October. 

The Assembly will also complete its final reading of an ordinance to adopt the final budget for fiscal year 2025. The budget was amended in late May to decrease the salary budgets for the Borough’s Motor Pool, Public Works, Harbor, Water, and Wastewater departments. The amendment also increased the salary budget for Petersburg Municipal Power and Light, as well as the Sanitation Department. 

In new business, the Assembly is scheduled to set the mill rate for the fiscal year. The resolution that will go before them today will set the rate at 10.00 mills inside Service Area 1, and 4.2 mills outside of Service Area 1.

Petersburg’s Borough Assembly will meet at 12 noon today in the Assembly Chambers. KFSK will broadcast that meeting live and post the recording in our Assembly Archives.