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Kodiak: Oversight Leaves Taxis Charging Lower Sales Tax

By The Associated Press

Channel 2 News

10:28 AM AKDT, October 3, 2012

KODIAK, Alaska

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As of Monday, all retailers in Kodiak started charging the city's new 7 percent sales tax.
   
Well, almost everyone.
   
Taxi cab operators are still charging the old rate of 6 percent.
   
The Kodiak Daily Mirror reports that's because the 6 percent rate is what's called for in city code.
   
Bonnie McDonald of Kodiak Island Taxi says that's all she can collect, so that's all she's going to pay.
   
She brought up the oversight in the taxi rate during last week's meeting, but there wasn't enough time to adjust the higher tax before it went into effect.
   
City officials will await a legal opinion from the city attorney before moving forward.
   
McDonald hopes they leave it as is since, "We're not talking gazillions of dollars here."