City and Borough marijuana retail sale taxes collected exceeded $1 million in 2018

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FAIRBANKS, Alaska - Between the City of Fairbanks and the Fairbanks North Star Borough, taxes collected on marijuana retail sales exceeded $1 million dollars in 2018.
According to Chief Finance Officer with the City of Fairbanks, Carmen Randle, the total taxes collected for the city reached just shy of that one million - coming in at $989,228.24.
She said these funds will go into the city's General Fund, which pays for city operations - including public works, fire, police, and dispatch.
The city of Fairbanks also collects a hotel/motel bed tax, an alcohol sales tax, and a wholesale tax on tobacco that also aids the general fund.
Randle said that with the financial contribution from the state lacking, this tax is helping to provide for city services.
"In the last couple years, the state has not been doing so well in their finances and as a result the money that we receive through the revenue sharing, which they now call community assistance, has actually dwindled from a high of 2.6 million to a low of about 600,000 dollars, 660,000 so this is helping make up for that difference so that we can continue to provide all of the services,” Randle said.
The city first started collecting marijuana taxes in October 2016. They receive five percent of marijuana retail sales.
According to the Associated Press, the borough has collected $138,000 dollars in marijuana taxes.