Borough considers tax diversification

MAT-SU—Tonight Assembly Members for the Matanuska-Susitna Borough agreed to postpone a proposed sales tax ordinance in order to reassess the benefits to tax diversification and to include more public participation.

A question on a Borough sales tax will not appear on the ballot in the upcoming special election on June 9.

“The whole point is tax diversification. I want the property tax limitation at the front of the ordinance,” said Assembly Member Cindy Bettine.

Assembly Member Bettine offered seven amendments to clarify the intent of the proposed sales tax. All of them passed. Words were inserted and struck in some existing language. Among the amendments: to levy a 3 percent sales tax to raise revenue for areawide operation expenses; to limit the areawide property tax to 7.8 mills and to give residential property taxpayers a $10,000 tax exemption. The proposed sales tax, if passed, would sunset in 2014. The proposed election date for the proposed ordinance was changed to Oct. 6, 2009.

The initial sales tax proposal is similar to a proposal that was tabled after much discussion in 2007.

Assembly Member Rob Wells referred to those discussions with the cities. “We sat down with the cities previously and tried to align it as much as possible with the cities' sales tax. Certainly we need to go back to the cities again,” Wells said.

Tonight representatives from the cities asked for more discussion and some guarantees. Some members of the public said they oppose a Borough sales tax. Others supported the sales tax, saying the burden of taxation should not be on the shoulders of homeowners alone.

Assembly Member Pete Houston got approval for an amendment that added the word “licensed” to an exemption on heath care provider services.

Assembly Member Mark Ewing called for a work session on a sales tax for June 2 at 3 p.m. Ewing asked staff to meet with local cities. He asked that the public be invited and continue to have an opportunity to speak.

For more information call Public Affairs Director Patty Sullivan at 745-9577 or This email address is being protected from spambots. You need JavaScript enabled to view it.



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