Anchorage Assembly to consider 1% sales tax

By
Suzanne Downing
-
69
A massive encampment along Chester Creek Trail in Anchorage now features a variety store inside one of the tents. Nearby, stolen shopping carts and a generator could be seen on July 24, 2025. Note the hanging plant.

The Anchorage Assembly will take up a controversial proposal Tuesday evening that would ask voters to approve a retail sales tax in the city.

Assemblyman George Martinez has introduced an ordinance that would place a 1% sales tax measure — cleverly dubbed “Penny for Progress” — on the April 7, 2026, municipal ballot. If passed by a simple majority of voters, the new tax could begin as soon as October 2027. Administering such a tax would be costly to the city but no fiscal analysis has been revealed.

The plan would dedicate tax revenues equally into three vague categories:

  • Infrastructure improvements such as roads, sidewalks, utilities, and snow removal systems.
  • Workforce housing development and preservation.
  • Behavioral and mental health facilities and crisis response programs.

Martinez says that Anchorage’s fiscal model is “structurally imbalanced” and unable to meet long-term capital needs without new revenue. His ordinance frames the 1% tax as a transparent, accountable “city-building strategy,” complete with oversight committees and a five-year review process.

But the proposal represents a camel’s nose under the tent. Anchorage does not have a sales tax, and once implemented, the rate will inevitably climb higher in future years. The measure would amend the city charter, making it easier for future assemblies to build upon this initial levy.

The Assembly has repeatedly delayed or rejected putting the measure on the ballot. A 3% sales tax known as Project Anchorage was considered for a special election on Sept. 2, but the Assembly voted 8-4 on March 18, to postpone the legislation indefinitely, effectively killing it. Earlier discussions included potentially placing it on the April 1, 2025, municipal election ballot as an advisory vote, but this was also postponed. 

The Assembly will take up Martinez’s ordinance during the Tuesday, Sept. 9 meeting, which starts at 5 pm at the Loussac Library Assembly Chambers. This item is subject to a public hearing, which will take place after 6 pm. Agenda at this link.

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69 COMMENTS

  4. Here is a thought….why don’t you trim your budget instead. It makes me sick what our assembly is doing. Lets keep on taxing the people that actually contribute to society. Bleed them dry over and over again. Once a tax starts it never stops and only increases. If we let this happen we only have ourselves to blame.

    • A Quick Look at Juneau will show that you are absolutely correct. It doesn’t matter how much they take in they always want more, I don’t believe there’s a one of them that knows how to balance a checkbook.

  5. This is complete crap! This assembly spends more money that get ZERO results than any past assembly in Anchorage. What happened to the Muni charter that specified 3/5 of the REGISTERED voters had to approve a sales tax? When did the charter get changed and who changed it?

    • “The Anchorage Assembly will take up a controversial proposal Tuesday evening that would ask voters to approve a retail sales tax in the city………would place a 1% sales tax measure — cleverly dubbed “Penny for Progress” — on the April 7, 2026, municipal ballot.”
      I get that reading comprehension is hard, Robert.

      That being said with our current mail-in-ballot scheme who knows how this will turn out. A sales tax is a polarizing issue in this town and many residents are against it UNLESS it offsets property taxes dollar for dollar. Then there is the tax cap to consider and what a sales tax will do to that.

      • It should be an easy pass for them.
        I get five ballots mailed to my residence every muni election now and Chris Constant has flowers on order already for his busy over worked ballot counters down at election central.
        I am sure they are already adding the new revenue to their dwindling pet projects.

        More free camping gear for their homeless campers for next year.
        A newly remodeled winter home in “Mark Begich Estates” also known as the “Aviater Estates”….coutesy of the generous property taxpayers.

  8. Where is the regular reporting required annually by the passage of the 5% alcohol sales tax? AT LEAST 120 DAYS [by 9/3/25] before the END OF THE FISCAL YEAR [12/31/25] of the Municipality and at such other times as the assembly directs, the MAYOR (no LaFrance) SHALL SUBMIT to the assembly a report of the tax revenues collected and expended. The report of expenses SHALL BE ITEMIZED by EACH AUTHORIZED USE or PURPOSE and presented to the public. Where is it?

    Dedication of [alcohol tax] proceeds:
    1. Funding for police, related criminal justice personnel, and first responders; and
    2. Funding to combat and address child abuse, sexual assault and domestic violence; and
    3. Funding for substance misuse treatment, prevention programs, detoxification or long-term additiction recovery facilities (Golden Lion Hotel ring a bell?), mental and behavorial health programs, and resources to prevent and address Anchorage’s homelessnes crisis.

    • Thanks for writing this. I wrote a similar post. However, mine was not published. I do not understand the “scoring rubric”. Why are some comments published while other similar ones are found to be unsuitable for publishing?

  10. 1% now, but later 2% and then 3% and then 4% and then 5%, and on and on and on. Meanwhile, Anchorage will remain the sh_thole it has become or probably worse.

  11. Let’s read that as a funding source for the growth of the homeless industrial complex… Paid for in part by visitors to the city. Add that to the closure of electrical generation deficit being made up by the intertie – cost born mostly by Fairbanks – and it is clear the Anchorage assembly leftists are simply thieves. Pass this tax morons, and I will not return to Anchorage – it will be cheaper to do business exclusively in Fairbanks.

    • EXACTLY! This sales tax would easily translate into “same song (remember the alcohol tax), second verse (the homeless need our financial support)”.

      The alcohol tax was marketed as a benefit to three areas of need in the Municipality. BUT it went almost exclusively to benefit the homeless (free lodging in hotels, free electricity, free heating, free water, free garbage, free TV, free internet, free meals, free medical, free dental, and free cleaning up the unsanitary conditions they create in their camps all over the Muni). Do not be fooled! The rest of us will not end up with improved infrastructure, workforce housing and preservation, or anything else.

      A sales tax, proposed by the socialists George Martinez and his sidekick Yarrow Silvers, would also be directed exclusively to the homeless as “Behavioral and mental health facilities and crisis response programs.”

      When will we have the opportunity to testify on this? Or is this already a done deal?

  12. The Marxist Nine at it again.

    Marxists gonna confiscate wealth from the downtrodden average citizen, and never be satisfied, no matter how high the rate of confiscation may go.

    It’s what they do.

  13. How much do they waste on the addicts and drunks? Maybe they should ask for that money back if they need to spend more. Otherwise, maybe we should just cut the Assembly, since they seem to cost an awful lot.

    If we can balance the household budget, so can the Assembly.

  14. After living in California and Seattle, this is how it started. Always with a small amount that people don’t get worked up about and then in the future, just keep adding 1/4 or 1/2 % so they don’t complain too loudly and then it will be at 8-10%. Look at King County, (Seattle), under 5% in the 1980’s and now 10%

  16. Of course! Tax and spend, it’s what that crowd is good at. This is just the start. If it passes, and it will, there will be continual increases, guaranteed!
    What has happened to the Anchorage of yore? It’s sad.

  18. How this sh-t happens is because conservatives/repubs and libertarians can’t agree on a qualified candidate but, the left knows how to double-down on stupid and always get elected. This doesn’t happen unless we step in it time and time again. Martinez was involved with Occupy Wall Street on the east coast. In his first attempt at public office in Anchorage he’s elected and proposing this garbage. Get informed and stop getting in pissing matches with one another.

  20. All the Assembly needs is 23% of the 40% of voters which is very attainable.
    Municipal Republican district groups members need to do better being personally engaged at their own neighborhood community councils and walking their neighborhoods meeting neighbors to get them to know the Republican side versus what the media broadcasts. They can’t just come out for Governor, US Senate and House races and some legislator seats while they neglect the community councils.

    The last thing that the municipal needs is more taxes while these same leaders can’t live within a budget. Oh Lord! help us. They need to learn to live within a budget with cuts and then see if a new tax is needed.

    • I am already paying my fair share. Real estate taxes are much higher then justified, and the muni taxes on fuel, booze, and utilities are being spent on… what exactly?
      .
      Ohh… someone else is paying a higher sales tax? So what? What is their property tax mill rate? Do they have a fuel tax?
      .
      The issue here is not paying the taxes, it is what the Muni will do with the revenue. Right now, there are bonds issued to buy needed Police and Fire fighting equipment, but somehow, no end of funds for the homeless. Instead of instituting a tax, how about reducing the amount spent to renovate Mark Begich owned hotels… errr…. I mean house the vagrants that contribute NOTHING to the city.

        • I remember my dad take care of a nuisance mutt that used to daily leave a pile of his poop in our front lawn.
          One day he caught the mutt and inserted a corn cobb soaked in turpentine in his poophole.
          Stupid mutt howled for days on end from his distant home but never pooped on my dads lawn anymore.
          You should learn to poop on your own lawn.

    • Witless,
      Thank you, you just made everyone in these comments section point! The Kenai tax was originally approved @ 2% in the 1990’s, now its 6% according to you. Looks like you stepped in it big time. And what the hell do you mean its our turn to pay up? Pay up to what? We already pay at least 15-20 times the % amount of money that Kenai pays in property taxes. You always seem to wander around making idiotic statements in these comment sections, where do you live? Further, while we are at it what are you “on” these days?
      Done for now.

    • I pay $7000 a year in taxes. For what? Have you. Seen the MOAs services? Puhhhlease.

      Cut the budget. Quit taking money from people who make good decisions and give it to people who make bad decisions.

      And

      Cut. The. School district. Budget.

  23. “Penny For Progressives”

    Anchorage is on a cliff. It’s real close to going down. With a dem mayor and the never-ending dem-control of the city council, the future is bleak.

  24. Incompetent mayor and assembly sucking the money and the life out of you to enrich themselves. Nothing but spend, spend, spend. Thank all of their supporters and voters who voted them into office.

  27. No tax is temporary, this tax, if enacted, will be there forever.
    No tax ever decreases. It will over time, only increase.
    .
    This tax will be used to increase the the flow of money to the homeless, thereby continuing the increase in the number of homeless, and increase property crime that follows the increase in homeless numbers.
    .
    Will Anchorage residents get off their butts and turnout to vote this down? Of course not…..

  29. It’s kinda like the old saying about a camel getting its nose under the edge of the tent. You start with 1% today, and it’s just the start. Down the short road, it increases, and before you know it, what started with 1%, then it jumps to 3%, then 5%. The sky is the limit.

    I’m sure the increases will all have a multitude of timely justifications. Overall, it’s not a bad thing I guess. Since the property owners won’t be paying for it, by their selves. But once you open the door to it, you will have it, for ever. It’s almost like a social disease, that you can’t get rid of.

    Politicians have never seen a pile of money that they didn’t love to spend. So obviously it really doesn’t matter if you do, or you don’t. They’re gonna get more money from you, somewhere. Either your property taxes, or a sales tax. Tax increases is what they do, and who they are.

    The question is are you ready to bite the bullet and live with yet another tax being put upon you? It’s a financial burden on everyone who shops in the municipality of Anchorage.

    If you trust that the government will use the funds wisely, and not squander them? The current Democrats in charge, love leftist politics. They will spend those new tax funds based on their ideology.

    I don’t have any confidence that they would be any better with new tax dollars, or spend the funds wisely, based on their past track record.

    I just don’t want to see these proposed tax funds used for more Democrat Party political purposes. It’s just making it their newest cash cow. As in most big cities ran by a Democrat regime, I think the new tax’s would be squandered, or used to promote more of the Democrat agenda.

    I would recommend a DODGE forensic audit of the current budget to see where the existing tax funds have been spent. This years and last years. Passing that audit, if there’s no fraud, waste, and abuse, I could then get behind a sales tax.

    • They will claim the sales tax will offset the property tax, resulting in a net zero tax increase to the homeowners. And, I actually think they believe it will. Anyone with even half a functioning brain cell will realize what a bunch of BS that is.

  31. “In 1913, the top tax bracket was 7 percent on all income over $500,000 ($11 million in today’s dollars1); and the lowest tax bracket was 1 percent.” Vote the basic structure of a sales tax in place and watch how fast 1% turns into 6 or 7 or 10%…you know, for the kids or for the vulnerable or blah blah blah.

  32. With the insane increase in home prices the past couple of years Anchorage should have plenty of money from property taxes. Mr. Martinez is just money grabbing.

  33. Only government-worshiping tools will rally to the vote to trust and give politicians more of their assets willingly. Taxation is theft. You can understand history or you can trust government, but you can’t do both.

  34. Sure do sales tax, IF you give back all of our PFDs money plus back pay on the theft of funds. We veto the taken of it and it was still taken and capped at 1k$ but yet where those billions going…

  35. Communist code-speak for taking 1% and using it to pay for “homeless shelters” and “homeless out-reach programs” that are operated by themselves, or through shell companies or their buddies.

  36. Govt./union families will be voting yes. Higher wages for them. Union thugs will use this tax as an excuse for more money next round of contract talks.

  37. For every 1% sales tax in Anchorage
    then there shall be a 10% reduction in property taxes. No sales tax on food and beverages in grocery form. Tax cap on big ticket items. That’s the formula I would vote for. Anchorage needs to live on a budget. I have too!

  38. Not just NO, but “F” no! Put those mentally ill folks in an asylum where they belong, not on the streets! This is 100% what the 1% sales tax is for! You liberals voted for this moron lafarce, why don’t you pay for her crazy ideas? Idiots, Anchorage is now full of idiots!

  39. From the morons that have wasted $250 million dollars on the dregs of society… Now they want a new tax which will make life more expensive and difficult for small business owners.

    These nasty local governments always start at one percent. Then they need more. And more. They will tell you they only need 1% more, each time they raise it. I’ve paid around 10% sales tax in some places in the Lower 48- in places that started with a 1% sales tax. They even tax food at ten percent.

    Just tell ’em ‘hell no’.

  40. More communism…the good old “infrastructure” reason (no monies will go where they’re supposed to), employee housing, and behavioral/mental health facilities with crisis teams. 1% is going to cover all that? Nope, they’ll need to go to 10%.

  44. What about the Marijuana and alcohol tax that is already implemented- where does that money go? My fear is that 1% will turn into 10% in a few years, essentially taking back our PFD.

  47. My vote will be NO just like the last time. Sales tax percentage will almost always grow so no no no. Unless it directly offsets property taxes.

  48. Too many lower 48 transplants taking over in making big decisions. A lot of people that move to Alaska are taking over positions that affect the community/state. I’ve seen a lot of posts about “I moved to Alaska….” We don’t know what kind of people live here and then push all these policies and changes. Alaska needs to start gatekeeping.

  50. This proposal seems premature. Wouldn’t it be more prudent for the city to fully explore enhancing the current model before introducing a new tax structure? The city currently taxes real estate for revue, and there are several strategies to maximize this revenue stream:

    1. Sell Off unused Municipal owned Real Estate: The city owns a fair amount of real estate. It could take proactive steps to sell off municipally owned properties. By placing these properties back into private hands, we can stimulate business growth, create more residential housing and increase the city’s tax base.

    2. Regulate Non-Profit Tax Exemptions: Non-profit corporations are significantly impacting the city’s finances. Implementing a cap on the size of non-profit organizations that receive tax exemptions, or adopting a tiered exemption approach, could help ensure that these entities contribute fairly to municipal revenue. Hundred Million and Billion dollar organizations do not need exemption from real estate tax but.

    3. Reassess Vacant Commercial Properties: A review of non-profit tax exemptions reveals numerous vacant commercial buildings in Anchorage that are receiving tax relief despite being unoccupied. The municipal code stipulates that these properties must be utilized for non-profit purposes. By reinstating taxes on these vacant properties, we can encourage competition and motivate owners to lower their sales prices. Once these properties make it back into private hands the muni can generate more real estate tax revenue, ultimately benefiting the community.

    By focusing on these strategies to increase municipal real estate tax revenue, we can strengthen our financial foundation without resorting to a new sales tax that may burden residents and businesses.

  51. Anchorage residents,

    Keep an eye on George Martinez. We managed to keep him out of the mayor’s office when he ran for that office, but unfortunately we ended up with him and his sidekick Yarrow Silver on the assembly. The two of them will always come up with bad ideas to suck your money right out of your wallet. A one-percent sales tax is only the beginning of an ever increasing one. George and Yarrow will never miss and opportunity to take our money to spend on their pet projects, like funding the wants of the homeless people whom they put up in hotels and/or allow to use the Loussac Library as their own personal recreation rooms. Even when the homeless are drunk and have open bottles of liquor in full view, the library staff will not throw them out. Keep your kids away from the library!

    When we next can vote, we must encourage our east Anchorage friends to vote both of them out.

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