Excess future sales tax to lower property tax

MAT-SU— This week the Matanuska-Susitna Borough Assembly created a fund where excess sales tax revenues would be used to lower the areawide property tax rate, if the measure is adopted by voters.

The fund is part of a 3 percent sales tax proposal that is on the Oct. 6 ballot.


Assembly Members Cindy Bettine, Michelle Church, Pete Houston, and Rob Wells requested the fund in an effort to give additional property tax relief.

The excess sales tax fund would capture excess sales tax revenues and dedicate them to lowering the areawide mill rate the next year. The Borough estimates that $23 million in sales tax will be collected the first year. This represents the amount of property taxes that would be cut from the areawide mill rate if voters pass the tax. Since the Borough does not presently have a sales tax, estimates have been made to determine the total revenues a sales tax might generate. If the current estimate of $23 million is low, the proposed ordinance would dedicate all sales receipts in excess of $23 million for property tax relief.

If voters approve the sales tax, a cap on the mill rate is frozen in place until 2014. The mill rate can only be raised in two instances: by voters if they approve bond measures, and to pay for judgments against the Borough.

The Assembly cannot raise the sales tax without a vote of the people. If adopted, the sales tax sunsets or ends in 2014.

Click player on right to listen to 60 seconds of information on the sales tax proposal.

This message is paid for by the Matanuska-Susitna Borough

350 E. Dahlia Avenue

Palmer Alaska 99645

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

or Dave Hanson, Economic Development Director at This email address is being protected from spambots. You need JavaScript enabled to view it.