A recent citizen initiative solicited voter approval to impose a statewide cap on property taxes. The ostensible reason for the initiative was that its proponents felt that property owners were shouldering a disproportionate share of the cost of municipal and borough services. The tax cap proposition failed, but during the debates leading up to the election there was significant sentiment that the tax burden should, indeed, be spread across a wider base. Various measures to effect this leveling have been proposed, including increased or additional user fees, sales tax, and other taxes and assessments. Proposition 1, which will appear on the April ballot, is one way for Anchorage voters to broaden the tax base.
Revenues collected from the proposed general sales tax are to be substituted for property taxes.
The issue of a general sales tax requires serious consideration and debate before we go to the polls. These questions need to be answered expeditiously if we are to cast an informed vote on April 3. And apparently, since bond issues translate directly into increases in taxes, they don't mind paying for them. If Anchorage is to meet the bona fide needs and demands of its citizens, it will have to find ways to generate additional revenue, but there are significant challenges to doing so. Many property owners feel they already are carrying too much of the tax burden.