More than 30 people weighed in on the Anchorage mayor’s proposed 3% sales tax during Tuesday night’s Assembly meeting — about three-to-one in opposition.
Mayor Suzanne LaFrance is hoping that the Assembly will approve sending her proposal to city voters. Her administration estimates her tax would generate between $150 and $180 million annually. And that money would get divided between three areas: public safety and capital projects, child care and housing, and property tax relief.
Theo Ransum was one of those opposed to the proposal. He said Anchorage wouldn’t shoulder the tax on its own. It would also impact residents from rural areas who buy things in the state’s biggest city.
“For many village residents, Anchorage is not a place of convenience, it is a lifeline,” Ransum said. “And a sales tax makes that lifeline more expensive.”
As the meeting went on, a group from the conservative Americans for Prosperity - Alaska was just outside the Assembly chambers, expressing concerns over the tax with people who engaged with them. Many testifiers echoed a similar phrase: Anchorage doesn’t have a revenue problem; it has a spending problem.
LaFrance has said the city faces a fiscal cliff and needs to generate new revenue or residents will face deep cuts to services. Her proposal includes tax exemptions for a list of items including gasoline, child care and some groceries.
Jason Norris told the Assembly he supports the sales tax. He said the state used to fund 30% of Anchorage’s budget, but it’s closer to 1% now.
“If we’re going to maintain our infrastructure, much less expand it, and if we’re going to maintain services, that money has to come from somewhere,” he said. “And it’s certainly not coming from the state, and that doesn’t look to be changing anytime soon.”
The Assembly ultimately voted Tuesday to continue the public hearing, and postpone voting on putting the tax on the ballot, to a meeting on Jan. 13.
