An initiative led by the Anchorage Economic Development Corp. has unveiled plans for a new sales tax aimed at easing the burden of property taxes while funding vital public projects. Dubbed Project Anchorage and in development for approximately a year, the proposal is positioned as a catalyst for increased construction and economic vitality.
The group believes it could also stem the outmigration that has impacted Anchorage’s workforce. The proposed 3% tax on select items would be in effect for five years, and the public would be invited to suggest projects for funding.
To mitigate the impact on lower-income households, essentials such as groceries, rent, childcare, and medical expenses would be exempt, along with resold items like those on Facebook Marketplace.
Additionally, taxable purchases would be capped at $1,000. Organizers emphasize that the current economic landscape differs significantly from previous sales tax proposals, which voters rejected in the past. They assert that this initiative could play a pivotal role in addressing housing affordability by reducing property taxes.
Moreover, the funding generated could support the anchorage economic development of new amenities, including urban trails, community centers, indoor recreational facilities, libraries, or a downtown pedestrian district. During a media briefing on Tuesday, Jenna Wright, president of the economic development group, stressed the urgency of the proposal to address the city’s housing crisis.
