This time Proposition 1 requires that the area-wide mill rate be capped at a maximum of 7.3, a reduction of 27 percent from the current 9.98. A 3 percent sales tax will be established specifically to lower property taxes. It also grants each primary residence a $20,000 exemption (without removing other exemptions, such as for seniors), and it is a temporary measure. Yes, a tax that could actually go away. The ordinance will sunset on June 30, 2014. This means it must be put back on the ballot the previous October, or it will automatically expire.
Private property owners bear the biggest burden of the cost of government and schools. I agree that our borough government could curb costs and improve its work toward more economic development, but that is not what the Oct. 6 vote is about. Those are battles to be fought another day. Unfortunately, it is the collective responsibility of all citizens to fund government. This tax will strengthen and diversify the revenue stream by getting 1/3 of the income for the borough budget from residents, non-residents and tourists. Even with the sales tax, property owners will continue to bear 2/3 of the cost of general government.
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If values decline, the assembly cannot raise the mill rate in compensation, like in Alaska’s depression of 1986 through 1990. They will be forced to cut government spending according to the economy. The current assembly has total control over what you pay in property tax because there is no maximum mill rate.
Three percent is not an onerous amount, and it is paid only on the first $1,000 of a purchase. Therefore, you cannot pay more than $30 at any given time. And there are many items exempt from the tax, including all purchases made using food stamps and all medical.
We have a huge borough. Many properties along the less populated parts of the Parks and Glenn highways will collect sales taxes from tourists to contribute to future new schools and roads.
Lower property tax lowers your monthly home expense. Eventually, the typical renter hopes to become a homeowner. Lower monthly cost makes it easier to quality for a new home, or allows you to buy a more expensive home. The average home value in 2009 is $209,000. This results in a savings of $708 the first year, and possibly more each additional year of the four-year sales tax.
At the end of the day, we are all borough residents who pay property tax. I do most of my shopping in Wasilla and I am sure those Wasilla residents are happy that I help pay their police force, subsidize their water and sewer, and provide for their lack of tax for RSA (road service area) and NAR (non-area wide items). Wasilla history shows that the sales tax lowered property taxes. They have the lowest taxes in the borough. If you are outside the city, look on your tax bill and see what you pay for RSA and NAR. This ordinance gives those of us outside the cities a break, and increases the break for city residents too.
Proposition 1 is a package deal that reduces the burden on homeowners and diversifies the sources of income. I urge everyone to vote yes.
Patricia Check was a residential property appraiser for 25 years in the Valley and is now retired She also served five years on the Board of Equalization (which hears appeals to the tax assessed values).
Comments
25 comment(s)jp to replytojp wrote on Oct 6, 2009 12:41 PM:
i would prefer everyone else shop at local places rather than costco and wal-mart.
you obviously don't get it, how's that retirement plan at wal-mart by the way ? "
jp to pretty clear wrote on Oct 6, 2009 12:37 PM:
if you think the property tax will go down, yeah maybe in percentage, but then the assessor boosts your property value again, we're worse than when we started.
never trust your elected officials to do what's right, make them do what's right! "
Reply to Pretty Clear -- wrote on Oct 6, 2009 11:08 AM:
Pretty clear wrote on Oct 6, 2009 8:17 AM:
All Righty-then wrote on Oct 5, 2009 10:16 PM:
Oh My, the city wants to expand. Vern wants more city tax income!! "
reply to JP wrote on Oct 5, 2009 10:06 PM:
Honey, vote NO. You definitely need the $30 saved by not having a sales tax. "
Dennis O. wrote on Oct 5, 2009 4:38 PM:
PatCheck wrote on Oct 5, 2009 11:55 AM:
jp wrote on Oct 5, 2009 8:47 AM:
i shop at local-alaskan owned businesses.
like Mikes quality meats in Eagle River.
Steves Food Boy, and Three bears.
i may spend a bit more than i would at Wallyworld, but i would rather give my money to local business people than to some conglomerate who pays their employees minimum wage, and tries to destroy local economies, and kill small business. "
palmeranian wrote on Oct 4, 2009 6:53 PM:
Most of the increased revenue will come from the lower income earners.
Most of the savings will go to the higher income earners...makes sense.
Make more money, pay less taxes. Soak the poor, we really don't care about them anyway. "
Oops wrote on Oct 4, 2009 1:26 PM:
PatCheck wrote on Oct 4, 2009 10:50 AM:
Jake .J wrote on Oct 4, 2009 10:07 AM:
Learn to spell-It is advice. Secondly, spending $500 on groceries is easy. I am single, athletic, (not fat) and do shop at costco when I am in the big city and $500 a month is getting off easy. Factor in the gas to get to Anchorage and the time and you would still come out ahead by shopping in the Valley. No sales tax "
Advise to JP wrote on Oct 4, 2009 9:25 AM:
First time writer wrote on Oct 4, 2009 9:03 AM:
Nothing wrong with Walmart jobs wrote on Oct 3, 2009 5:16 PM:
concerned wrote on Oct 2, 2009 10:30 PM:
jp wrote on Oct 2, 2009 3:10 PM:
so Mrs. property appraiser mathematical genius, where are the savings going to be????? "
PT wrote on Oct 2, 2009 1:08 PM:
jp wrote on Oct 2, 2009 10:13 AM:
do you honestly believe that?
Reading comprehension not your strong point huh?
Start simple, something like" the dog goes bark" now what does the dog do? "
Oh good grief wrote on Oct 1, 2009 11:37 PM:
Oh once again wrote on Oct 1, 2009 11:31 PM:
I dont think wrote on Oct 1, 2009 11:28 PM:
Oh Please wrote on Oct 1, 2009 11:26 PM:
Makes me want to leave the state of Alaska my home and go somewhere else where it is warmer..........after all it will be the same. "
Tax Cap wrote on Sep 29, 2009 9:07 AM: