Assembly Sponsors Welcome Feedback on Project Anchorage Draft Ordinance

PageImage5

PageContent4

During a worksession today, Assembly Members Randy Sulte and Felix Rivera presented a draft ordinance based on efforts by the Anchorage Economic Development Corporation (AEDC) to submit a ballot proposition to Anchorage voters to establish a three percent (3%) sales tax for a seven-year period. As the sponsors refine the draft ordinance before it is formally introduced, they welcome community review and feedback.

An AEDC ex-officio member and sponsor of the ordinance, Assembly Member Randy Sulte noted, "This is about creating a more sustainable financial structure for our city. We're reducing the property tax burden and dedicating resources to projects that will invest in Anchorage to make it a better place to live, work, and thrive."

2% Property Tax Offset
The draft ordinance dedicates 2% to reducing property taxes within the Municipality. Residential property accounts for the bulk of this revenue source, contributing 64.6% of all property tax revenues. The reduction could lower property taxes by an estimated $120 million annually, translating to a reduction of about 16% for property owners, or roughly $1,195 on a home valued at $450,000.

1% Municipal Area Projects (MAPs)
The remaining 1% is set aside for funding of Municipal Area Projects (MAPs), which are voter-approved capital improvement projects to enhance the city's infrastructure, as well as to pay for the administration, collection, and audit of the tax. This portion of the tax will be held in a dedicated Sales and Use Tax Trust Fund to use the fund's investment earnings to cover the costs of the long-term operations, security, and maintenance of these projects, a sustainable funding system. The draft ordinance also establishes a MAPs Citizen Advisory and Oversight Board to monitor project development and ensure accountability.

Exemptions
The draft ordinance exempts essential household items such as non-prepared foods, medical expenses, and childcare costs from the tax. A hardship relief provision may allow households earning at or below 80% of the federal poverty line to apply for an exemption from the sales tax entirely.

"Today's worksession marks the transition of this project into the Assembly's legislative process," said Assembly Member Felix Rivera,who is co-sponsoring the ordinance. "We look forward to introducing the ordinance, setting a public hearing in November and working through the public process to engage our community in the formalization of this proposal. As we move forward, we'll work to stand up a hub on the Assembly website for the public to stay engaged."

A recording of today's worksession and presentation materials can be found online: www.muni.org/worksessions.

To learn more about the development of Project Anchorage, visit projectanchorage.com. To provide feedback on the draft, please email [email protected].

###

Contact:

Randy Sulte | District 6, [email protected]
Felix Rivera | District 4, [email protected] ​

​