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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