The Anchorage sales tax proposal remains uncertain after the Assembly postponed its final vote until March 18 following calls for more public input. Assembly members Felix Rivera and Randy Sulte introduced the measure and announced two town hall meetings to gather residents’ feedback.
The first event will be at 6 p.m. on Wednesday at the Loussac Library’s Wilda Marston Theatre, while the second is set for 4 p.m. on Saturday at the Mountain View Library. Under the proposal, voters would decide in a special September election whether to implement a 3% sales tax, projected to be $180 million annually.
Two-thirds of the revenue would fund property tax relief, while the remaining $60 million would support municipal projects and tax administration costs. However, before reaching the ballot, the measure requires approval from at least eight of the 12 Assembly members.
The Assembly voted 7-4 to hold another public hearing before reaching a final decision after Assembly Vice Chair Meg Zaletel, backed by Chair Chris Constant and members George Martinez and Daniel Volland, pushed to scrap the proposal during Tuesday’s meeting.
Critics claim the measure disproportionately affects low-income residents while giving tax breaks to large commercial real estate companies. Zaletel highlighted concerns about the tax’s regressive structure, stating that more funds should support community projects instead of property tax relief.
Meanwhile, Riviera proposed adjusting the revenue distribution to a 50-50 split at the next assembly meeting. Supporters claim the tax would diversify revenue sources, reduce property taxes, and fund citywide improvement. The measure exempts non-prepared foods, childcare, medical care, fuel, alcohol, and marijuana.
A $2,500 cap on taxable purchases would also limit the maximum tax per transaction to $75. The Anchorage sales tax proposal would take effect no earlier than July 1, 2027, and expire after seven years, pending voters’ approval.
This news article was originally published by Anchorage Daily News.
