By DAN FAGAN
Anchorage homeowners pay a heavy price for living in Alaska’s largest city. Proposition 14, currently on the April 4 ballot, will hurt property owner’s bottom line even more.
The current average price of a single-family home in Anchorage is $456,000, a new high. The pricey cost of housing makes it virtually prohibitive for a young couple to settle in Anchorage and start a family.
Proposition 14, dubbed the “Care for Kids” initiative, will raise taxes on property owners another $6 million a year. That’s an extra $6 million transferred out of the anemic private sector and into an ever-ballooning city budget.
Prop 14 will move money collected from the marijuana tax, which passed by ballot initiative in 2016, out from under the tax cap, meaning the city will be able to tax property owners $6 million more before bumping up against the tax cap.
The Assembly just passed the largest city budget in history. Now they’ll have even more money to play with.
The language in the Prop 14 ballot conveniently — and deceptively — does not mention moving the marijuana tax out from under the tax cap. Voters will have no idea they are supporting millions in new taxes if they vote yes on Prop 14.
A widely distributed flyer promoting Prop 14 reads: “Proposition dedicates the existing marijuana tax revenue to fund child care and early education, and build a strong economy.”
The impression is voting yes on Prop 14 only redistributes funds. But it sweeps this tax out from under the tax cap and therefore allows the Assembly to raise taxes.
Anchorage property taxes are already high. Compare them to property taxes in all U.S. counties, and Anchorage homeowners pay more than people living in 3,040 others.
Anchorage property owners are so overburdened, the city’s property tax rate ranks 103rd highest among all 3,143 counties.
You won’t read that in the Anchorage Daily News.
Compare Anchorage property tax rates with similarly populated cities like Boise, Idaho, Aurora, Colorado, and Mesa, Arizona, and the over taxation becomes even more glaring. Anchorage homeowners’ yearly property tax bills are double of those living in those cities.
Anchorage property tax rates for a medium-priced home is higher than 42 of America’s largest cities. Only homeowners in the Democrat-run cities of Seattle, Chicago, Hartford, Austin, Boston, San Francisco, San Jose, and New York pay more in city property taxes than those living in Anchorage.
You won’t see that reported on KTUU.
Proposition 14 will not only soak homeowners, but it also means more bureaucracy, as the initiative creates an “Accountability Board of Child Care and Early Education.”
Many would argue now is not the time to transfer millions more out of the private sector into government, especially in Alaska’s largest city, a city that often drives the state’s economy.
Anchorage city leaders are always coming up with new ways to get around the tax cap.
Former Mayors Mark Begich and Ethan Berkowitz, both Democrats, successfully found end runs around the tax cap.
Now the insatiable government-centric types are using a ballot initiative to raise taxes in Anchorage with the pitch of doing it “all for children. “
They’re disguising the tax hike as a redistributing of funds. They do so with the cooperation and blessing of the liberal media.
Dan Fagan is a reporter for Must Read Alaska. Email [email protected].
