Matanuska-Susitna Borough

Assembly considers a Borough sales tax

Mat-Su | Patty Sullivan | Wednesday, May 23, 2007

PALMER— Matanuska-Susitna Borough Assembly members are considering a sales tax for the Borough. The three cities in the Borough have had success with a sales tax. One city has zeroed out its property taxes because of its sales tax.

Assembly members are looking to a sales tax for the same relief for homeowners. An ordinance is on the agenda for introduction for June 19 at an Assembly meeting.

Initial numbers could change but include:

  • a cap on the areawide mill levy
  • a 3 percent Borough sales tax
  • exemptions similar to cities
  • a $10,000 property tax exemption for homeowners

The 3 percent sales tax is projected to generate $19.2 million dollars. Right now 89 percent of taxes are paid by homeowners. About 70 percent of the average property tax bill goes to education.

The sales tax will diversify tax revenues to help pay for an increasing demand for services such as libraries, schools, and roads. The MAT-SU economy is at a turning point. The population base of 77,174 residents has reached a level where it is drawing significant commercial activity. New restaurants, new businesses, as well as national brand stores such as Target and Sportsman's Warehouse are locating here.

The Assembly meeting June 19 begins at 6 p.m. in the Borough Assembly chambers at 350 E. Dahlia in Palmer.

For more information call Borough Manager John Duffy at 745-9689.