The Anchorage Assembly, facing headwinds from the public over the city’s downward-spiraling quality of life and upward-spiraling cost of living, will consider changing its proposed 3% sales tax ballot question to an advisory-only vote in April.
According to a proposed ordinance for April’s municipal ballot, “the Municipality of Anchorage is suffering from a net outmigration of residents with a net decline from 2013 (302,127) to 2023 (289,653) of 12,474 residents or ~4.1%; of which 18,314 are of working age and multiple forecasts predict this decline will continue …” Somehow, a sales tax will stop people from leaving.
Other proposed new versions to the 3% sales tax were offered by members of the Assembly on Dec. 17, and they will also be taken up at the next regular meeting on Jan. 7. The Assembly has to approve the language before it can be placed on the ballot.
In the ordinance, the proponents state “the Municipality of Anchorage has identified housing, aging infrastructure and equipment, challenging attracting and retaining workforce, and the high costs for residents and small business as key policy priorities to address outmigration and encourage economic growth; and WHEREAS, there is a desire to revitalize Anchorage to attract and retain residents, increase resident and visitor enjoyment, and enhance the livability of Anchorage…” as a key motivator for raising taxes in Anchorage.
The sales tax ordinance is generally called Project Anchorage by its promoters.
According to Constant’s newest version, “Given the complexity of the originally proposed ballot initiative and the broad diversity of opinions within the community, the proposed substitute version changes the ordinance to an advisory question for the April 1, 2025 ballot. Such a proposition would provide the sponsors an opportunity to further engage and educate the public on the proposed sales tax, while allowing the body the opportunity to gauge public opinion on the topic. Both of these processes would greatly inform our various positions while allowing additional time to refine the ordinance to deliver a better product.”
However, other versions of the new proposed tax include the substitute version from Vice Chairwoman Meg Zaletel and Assemblyman Daniel Volland, which would reduce the sales tax to three-fourths of one percent (0.75%) sales and use tax “dedicated to the reduction of property taxes under the tax cap. The full amount of this tax revenue, after the cost of administration, [emphasis ours] is dedicated to reduction of property taxes, dollar for dollar. This is estimated to reduce the overall property tax burden by approximately $120 million, or 16% of an average property tax bill, the sponsors write.
One third of the sales tax would be skimmed off for the administration of the tax program itself “and general government.” According to the ordinance, the tax would be temporary — for seven years. Exemptions on the sales tax would be granted to those who are at 80% or lower than the federally established “poverty line.”
A ballot proposition ordinance must be approved by at least eight Assembly members — a 2/3 majority — to be placed on the ballot, and must be approved at least 70 days before the election is held, which puts the final decision by Jan. 27.
All of the new versions of the sales tax proposal can be seen at these links:
- 2024-105 (S) – Sponsors’ Substitute Version, Assembly Members Randy Sulte & Felix Rivera
- 2024-105 (S-1) – Assembly Chair Christopher Constant
- 2024-105 (S-2) – Assembly Vice Chair Meg Zaletel & Member Daniel Volland
- 2024-105 (S-3) – Assembly Member Martinez
- 2024-105 (S-4) – Assembly Member Brawley
More information about the proposed sales tax is at this link.
We are moving out of Anchorage. It’s becoming to dangerous to expensive and our favorite places to glare closing from no staff.
Get housing! I don’t care the price. If it’s expensive those that can afford it will move up. Opening up cheaper properties. The property crime has to be addressed. I won’t buy nice stuff to lose it every year to homeless theives. Jail car theives, jail trespassers, get an asylum for mentally ill.
Trading success for failure is a faith-based endeavor. The Assembly believes penalizing success and rewarding failure will result in more people choosing to live in Anchorage. Unfortunately, the primary reason success is leaving Anchorage is because of the Assembly’s faith. No reasonable mother and father wants to send their children to a failed public school system. Successful families don’t want their children exposed to dangerous and perverted ideologies either. The Assembly shirks back when the words of Jesus are spoken but expects the rest of us to listen to their sick and depraved ways of life. No, thank you.
The ‘wrong’ leadership at the State and Muni level, making the ‘wrong’ decisions, won’t improve matters. Tax Payers & Voters are going to have to feel more pain – travesty before making better choices at the ballot box.
Buckle-Up … It’s going to be a ruff ride for awhile!!!
Someone please explain to the Assembly how an increase in cost of living in Anchorage is going to stop residents from moving elsewhere? Anchorage residents would be better off if the Assembly started cutting wasteful spending, including useless consultants. Return to core services for taxpayers!
Stop buying hotels for career drunks.
Three percent becomes five percent. Five percent becomes seven percent.
Reduction in property taxes? Does the Assembly think we’re stupid enough to believe that?
Yes, they do.
And, once Anchorage has a sales tax you expect the Mat-Su Borough to lift their sales tax cap. The Mat-Su caps their sales tax so things like cars, appliances, furniture, and big ticket items can be sold competitively with Anchorage. Expect adding three percent to the price of your next new vehicle.
The mat Su does not have a sales tax. The city of wasilla and city of Palmer each have a 3% saves tax.
They want “advisory-only” to save you hem the trouble of rejecting a binding vote of the public like on the Taj Ma-Crapoers
Does anyone really believe they will be satisfied with 0.75%?
Does anyone believe that the property taxes will go down?
Does anyone believe that it will actually sunset?
Here’s an idea. Stop buying hotels for hobos who want to be drunks.
##NO..NO they’ll turn it into more hotels for the mentally sick who REFUSE to get help. Don’t mistake these as HoBo’s are Not HoBo’s..They’re mental unstable people unwilling to work. Back in the 1930’s and ’40’s..they were truely hobo’s…but they WOULD willingly work where ever they traveled finding work to support never expecrtng hand-outs, not begging for food.
Reduce my property tax by 66% and I’m in for a 3% sales tax excluding food.
You don’t want 2 tax bases that will go up every year or two.
One or the other tax not both as the politicians will raise the rates and lie to you by saying we will not raise the taxes.
This is typical of the current Anchorage assembly. They propose something expensive, but opposed by the public. They then suggest putting it to a vote of the citizens. But then when it is obvious the vote will be, or has been, rebuffed the Assembly’s then proposes to study the issue again. Fact is this Assemble has an insatiable appetite for other people’s money. They are also insular and disregard the view of the general public. With regard to the sales tax I challenge you readers to identify one jurisdiction where a sales tax once instituted does not increase. Giving this Assembly another source of income is a waste of your tax dollars.
The Anchorage Assembly are a bunch of useless individuals that have no business making important decisions for anyone!! Anchorage is a real $hit hole now because of the Assembly.
Oh hell, no that tax will go up continuously as property taxes go up. If they tell you different, they’re lying you show me one city or state in the United States that sales tax and property taxes are both gone down consistently get rid of the homeless problem that’ll free up more than enough money when you ever had that on the budget before. Get rid of all the waste.
“is dedicated to reduction of property taxes”. Ok, but it’s nothing more than robbing Peter to pay Paul. I might get a smidgen of property tax reduction but that will be absorbed back to the municipality in the form of my sales tax sentence.
News flash. As soon as there is a sales tax they will lobby to increase it every year. And guess what? Your property taxes ARE NOT going down and it will not sunset in 7 years. Lie, and Lie and Lie. Look at leftist cities for a preview.
I would tolerate a modest sales tax if they permanently get rid of all residential property taxes.
News flash. As soon as there is a sales tax they will lobby to increase it every year. And guess what? Your property taxes ARE NOT going down and it will not sunset in 7 years. Lie, and Lie and Lie. Look at leftist cities for a preview.
I would agree on that.
Not sure what drugs they are high on but they really have no clue how Anchorage residents feel about the way the Assembly is dealing with the homeless.
Putting them up in expensive taxpayer funded hotel rooms is ignorant and then let them out to free graze in the summer leaching off nonprofit charity for food clothing tents and camping supplies is not what they deserve.
Residents are tired of losing all their belongings that arent chained up.
Propane bottles disappear faster than an open bottle of whiskey on a poker table.
The woods fill up with stolen bicycles like cordwood.
Isn’t it interesting, when the assembly gets the majority of money for their “slush fund” to build projects they think would be nice(at a time of their choosing no less), the tax is 3%. When there is nothing in it for them only for the overtaxed property owners, the tax is 0.75% with an administrative hold back! Tells you all you need to know.
Then there is this:
“Exemptions on the sales tax would be granted to those who are at 80% or lower than the federally established “poverty line.”
How is that going to work? Do we now have to disclose our income when we shop at Walmart or Carr’s? That really isn’t any of their business and in my opinion demeaning. Set a minimal sales tax without restrictions and full property tax relief.
An advisory only vote is the Anchorage Assembly’s version of a digital rectal exam for constituents.
It’s for your own health, really.
Except in this case they only have one goal in mind and that’s to inform you that you do actually have cancer and the variety you have is called ‘the Anchorage Assembly’. You can be cured after a few more DRE’s and an increase in their prescribed tax. The tax will be used to reward Anchorage’s lowest performing strata which is about as comforting as their next proposed DRE.
No one on the assembly should ever have a conflict as clear as Zalatel’s bum issue. Her duplicitous comment used to get elected? “Anchorage must do more with less”.
Liar.
Stop giving away the budget, Zalatel. Particularly when oriented toward your own monetary interests.
Once the camel’s nose is in the tent…
Of course, they will offset that revenue by reducing property taxes…Not!
The cost of living in Anchorage today yields many financial negatives, not to mention, the decay in morality and ethics amongst it’s leaders. The former All-American City has become a cesspool and swamp of DEI and LGBTQ creatures. No wonder the exodus is getting noticed.
Isn’t this how mail-in “ voting “ AND April muni elections were crammed down our throats?
No voice of the people?
No amount of Money is ever enough for Marxist like these. Remember you cannot be trusted with your own money. Not to worry they need an Equity center and other Woke crap. Yet you fools vote for the party that destroys everything they touch!
The picture of our Assembly sez it all, look at em, just look at em!
A 3% sales tax isn’t going to kill you.
Sure, population may be declining in Anchorage, as it is doing and will continue to do in Alaska in general. A smaller population does not reduce the effort it takes to plow roads, provide water, or staff a fire department, So the assumption that a reduced population should reduce operating expenses, at least incrementally, is largely ridiculous.
As the population reduces in size, expect per-capita expenses to rise. This will also happen in Alaska in general, eventually resulting in the reinstatement of a state income tax.
The fun days are over up North as people age out, kids leave, and oil diminishes.
Good luck to all!
You know WTD, I would be all for a 3% sales tax IF it were actually designed to permanently eliminate property taxes forever, but these funds are dedicated to become an assembly slush fund for “nice to have things” (like the gold platted 1/2 million dollar a piece toilets)while those who own property still have to pay for snow plowing, police and fire as well.
I will not accept that it is a given that our population will continue to decline. There is simply movement to other venues like the Mat-Su etc. You are also incorrect. A reduced population does generate less expenses, we are already closing schools (a trend I think will continue given the poor quality of education provided by the ASD) Police staffing is based on population density etc….
Any increase in taxation isNOT going to reverse population decline. Exactly the opposite!!. Anytime you make living more expensive somewhere, people will choose to live elsewhere.
The dog. The point of financial tyranny is not to “kill you” as you say. It is to enslave you while those collecting the taxes get to party with your money.
Keep voting Democrat and watch the world burn. Like California. How fun!
The Assembly wants to change this to an “advisory vote” because they know there is no way this would pass. An advisory vote would allow the door to be opened just tiny bit so they idea can leak in and fill the room like poisonous air and start infecting the growing number of low information voters. And the idea of a a seven year temporary tax is a lie straight out of the starting blocks. The Assembly knows that once this financial opium starts filling veins of municipal government, the next step is not just allowing the “temporary” tax to become permanent, but to start increasing that tax to three and one-half, then four and then five percent. No society has ever taxed and spent itself into prosperity. So, if the Assembly isn’t working to bring prosperity to Anchorage, what is it that they’re trying to do? Well, at least they’ve outlawed plastic shopping bags at the grocery store…
“the Municipality of Anchorage is suffering from a net outmigration of residents with a net decline from 2013 (302,127) to 2023 (289,653) of 12,474 residents or ~4.1%; of which 18,314 are of working age…
So, 150% of the net loss of residents were wage earners. And these are the people handling the purse strings…can’t even get first-grade math right.
A sales tax will also require even the parasites to pay up.
No new taxes are ever just temporary and the fact that they are designating how much is used for what purpose means diddly-squat because the assembly will change it later to something else.
I agree. This assembly (all liberals) new mayor (very liberal) just blew through the tax cap for the first time on property taxes in over a decade and then set an all-time record expense in their budget for ‘highly endangered” Municipality of Anchorage residents. All these demomarxist liberals know how to do is tax the living hell out of people, then spend more and more, then increase taxes more and more. Make no mistake they will destroy this city for good. Look at all these hobo encampments (homeless my ass, they are just lazy and love all the free bennies they are having handed to them (housing, food, clothes, and anything else the demomarxists can dream up). So, guess who suffers and foots the bill for this insanity? The regular working people. I can guarantee you, if you open the door for a sales tax, these liberals will keep raising and raising and raising until it becomes an absolute obscene tax rate.Thats what these destroyers of cities and states do. When Alaska is finally destroyed they will move to another red state and destroy them as well. They are like the tax monster energizer bunnies, or nomadic tax locusts, take your pick. I am very serious when I say they all (mayor, assembly, school board) should all be recalled and removed from office permanently. We should do a massive recall on all of them now!!!!
The advisory vote is yet another swindle by the A$$embly; remember how we voted against the liquor tax? They ran it again within two years. It passed. That money is slush funded, not to cure alcoholism or homelessness. Remember how we were against the gas tax? They ran it again. It passed. You see the pattern here?
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