Peninsula Cannabusinesses

Prepare To Fight For $5.3m Industry 

 Members of the community gather to learn more about taxed, regulated and tested cannabis

Members of the community gather to learn more about taxed, regulated and tested cannabis

The Kenai Peninsula Borough’s cannabusinesses are preparing for a fight this October which could extinguish the $5.3 million local industry. Nikiski grower Dolinda Phelps told the Kenai Chamber that the industry will generate nearly $220,000 in sales tax revenue this year, which will all go to the Kenai Peninsula Borough School District.

Phelps: “So, Vote No on 1, this is our ‘Keep Cannabis Legal’ campaign. Last year a group of people got together and were able to get 899 signatures. They want to see all marijuana facilities banned in the Kenai Peninsula Borough outside of city limits. That would encompass about 14,900 square miles of a 15,000 square mile borough. Our vote, October 3rd, a vote no on 1, would protect these businesses and allow us to keep operating. I see no reason why we shouldn’t, There’s been no negative impact thus far and quite a bit of positive impact, especially financially, within our community to support that.”

 

The Borough’s code requires all sales tax revenue to be dedicated to local education funding. The Borough has not and will not release specific details on the amount of sales tax collected from marijuana-related businesses. The City of Kenai has also refused to share sales tax data for specific businesses.

 

Phelps says the 17 cannabusinesses on the Peninsula have invested nearly $2 million in starting their companies and spend more than $300,000 on monthly operating costs, not including payroll. She places the monthly marijuana excise tax from the Peninsula at $122,900, monthly sales tax to the Borough at $18,200, and monthly sales tax to Kenai at $5,000.

 

She says 16 of the 17 businesses would be closed by Prop 1. The remaining business would be Red Run Cannabis Company, which is located within the city limits of Kenai. Phelps says that business would also suffer if their suppliers were shut down.

 

Source: Radio Kenai <---Link