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palmer's tax hike hits the fair

Palmer's sales tax just jumped from 3% to 4% and the Alaska State Fair is eating about $100,000 in unplanned costs because of it.

Daily Alaska staff · April 28, 2026

Palmer's new tax hike is about to cost the Alaska State Fair a hundred grand.

The city bumped its sales tax from 3% to 4% starting April 1 through October 2027. That window runs right through fair season, and the fair had already signed contracts before the tax even passed.

So now they're staring at roughly $100,000 in extra costs they didn't plan for. That money was supposed to fund other things, and there's no easy way to renegotiate vendor deals mid-cycle.

Palmer says the revenue goes toward the library, which makes sense on paper. But a lot of folks are asking why the fair didn't get a heads-up before contracts were locked in. It's a small detail that'll show up in a big way when the corn dogs get pricier this August.

Sources

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