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Assembly continues public hearing on 3% sales-tax proposal to March 18 after extended debate
Summary
The Anchorage Assembly kept the public hearing open on an ordinance that would add a 3% sales tax (2% dedicated to reduce property taxes; 1% dedicated to a capital-project trust) and scheduled further public input and sponsor town halls ahead of a March 18 action.
The Anchorage Assembly on March 4 continued the public hearing on AO 2024-105 SA — a proposed municipal ordinance that would add a 3% sales and use tax in Anchorage, with a 2% portion intended to offset property taxes within the state cap and a 1% portion dedicated to a voter-approved capital-project trust — and set the hearing to resume on March 18.
The ordinance’s sponsors, Assembly members Rivera and Salt, told the Assembly they plan two public town halls this week and said they expect any final amendments to be available in advance of the next meeting. Assembly members debated whether to close public comment tonight or allow the additional outreach; after a lengthy floor discussion a motion to continue the public hearing to March 18 passed on a 7–4 vote.
Supporters and opponents attended the public hearing and offered testimony. Phil Cannon, president of the Mountain View Community Council, spoke as a resident and opposed the measure, calling it “especially regressive” and saying the proposal would reward property owners at the expense of renters and low-turnout neighborhoods. Other public commenters pressed for broader community engagement and analysis before any vote.
Assembly discussion focused on three issues: (1) the timing and sufficiency of public outreach, (2) the distribution of the proposed tax (the 2% property-tax offset versus the 1% capital trust fund), and (3) implementation and administrative analysis from the municipal administration. Vice Chair Zolotel and others asked for clearer modeling of implementation steps and exemptions; sponsors said the administration has already produced multiple versions of the summary of economic effects and administrative concerns and that town halls are intended primarily for public education and to gather final feedback.
During debate, a motion by Assembly member Salatow to postpone the ordinance indefinitely failed on a 4–7 vote. Sponsors previewed a potential amendment to change the split between property-tax offset and capital trust (a 50/50 split was mentioned) but said that amendment was not ready for the floor tonight and would be circulated if introduced by the March 18 meeting.
The Assembly Chair cautioned members that the measure’s structure — restricted funds dedicated to specified uses — does not by itself deliver unrestricted revenue for operations. Several members urged broader, long-term discussion about municipal revenue structure and alternatives to the current proposal.
The public hearing on AO 2024-105 SA is now continued to the Assembly meeting on March 18, when the Assembly will again hear public testimony and consider any sponsor amendments. The sponsors said they will distribute any amendments by the meeting’s addendum if one is proposed.
Votes at this session were procedural: the motion to continue the public hearing to March 18 passed 7–4; a motion to postpone indefinitely failed 4–7. No final vote on the ordinance was taken on March 4.
