Officials in Anchorage are weighing a potential sales tax to deal with state’s on-going fiscal challenges. The two percent tax is forecast to bring $90-$150 million in new revenues to the city and is intended to, in part, offset property taxes.
This latest proposal is coming from the mayor’s office — a new development since the tax was first introduced through the Assembly in December. Myer Hutchinson is a spokesperson for the administration, and said the measure is still in the very early stages, with many details left to sort out.
“I think this ordinance right now is just a conversation starter,” Hutchinson said. “But the general principals behind it are offsetting and reducing people’s property taxes, and then providing some support generally to public safety in Anchorage.”
Hutchinson said the administration plans on including measures to soften the regressive nature of a sales tax, such as exempting food and potentially some services.
Any revenues from the measure would remain below the city’s tax cap.
Hutchinson said the process going forward isn’t yet defined, but the tax would need approval from the majority of voters in a special election.
Zachariah Hughes reports on city & state politics, arts & culture, drugs, and military affairs in Anchorage and South Central Alaska.
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