Voters may decide in April whether to implement a new Anchorage sales tax proposal, but the Assembly is still discussing its details. Currently, the Assembly is considering five proposals. Four propose sales taxes ranging from 1.5% to 3% to address different concerns like property tax relief, public facilities, or general government revenue.
The fifth proposal suggests including an “advisory question” on the ballot so voters can voice their thoughts before a formal plan is decided. Assembly members Randy Sulte and Felix Rivera initiated the sales tax discussion through their Project Anchorage plan.
The proposal initially included a 3% sales tax projected to generate $180 million annually and sunset after seven years. Updated versions focus on property tax reductions and funding for municipal projects such as snowplows, public safety vehicles, and recreational facilities.
Two-thirds of the revenue would provide property tax relief, while the rest would finance community projects. Criticism surfaces with opponents arguing that the Anchorage sale tax proposal could burden renters and low-income residents while benefiting property owners.
Sulte and Rivera responded by expanding exemptions to include gasoline, prescriptions, food, childcare services, and tax rebates for low-income households. Alternative plans present unique revenue allocations. One would split funds between capital projects, public safety, property tax relief, and a trust fund.
Others propose smaller taxes for community initiatives or broad funding needs. The Assembly plans to hear public testimony and refine the proposal during its January 7th meeting. Two-thirds of assembly members must approve any measure to reach the April ballot.
This debate highlights efforts to diversify Anchorage´s tax base while addressing public concerns about equity and impact. The Anchorage sales tax proposal could significantly change the city’s financial future.
This news article was originally published by Anchorage Daily News.
