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?
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.
Reduce my property tax by 66% and I’m in for a 3% sales tax excluding food.
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.
I would tolerate a modest sales tax if they permanently get rid of all residential property taxes.
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?