Assembly ponders areawide sales tax

June 21, 2005

DARRELL L. BREESE/Frontiersman reporter

PALMER - An ordinance authorizing the Mat-Su Borough to ask voters to approve an areawide borough sales tax, intended to provide relief to property-tax payers and increase revenue, was introduced during a special meeting of the Mat-Su Borough Assembly last week.

The introduction is the first step in the journey toward placing the measure before voters for their consideration.

The ordinance, which, if approved, would establish a boroughwide 2-percent sales tax, was originally scheduled for introduction during the May 3 regular assembly meeting. It was pulled from the agenda then and resurfaced Tuesday.

Originally calling for a 1-percent sales tax, Borough Mayor Tim Anderson asked for an amendment to the introduction, changing the sales-tax rate to 2 percent.

Assembly Member Jim Colver introduced the measure, which was drafted by Borough Manager John Duffy.

"I think from the very beginning all members of the assembly wanted to make sure that sales tax would provide a significant level of relief," Duffy said. Changing the rate from 1 to 2 percent is a small enough amount to accomplish that."

Public hearing on placing the tax question on the Oct. 4 general-election ballot will be held during a special meeting Thursday.

Duffy introduced the sales-tax ordinance as a way of easing the tax burden for real property owners and as an additional revenue source that will be used to reduce the mill rate.

Voters last year rejected a proposed 1-percent sales tax. If approved by the assembly, this measure will be the sixth sales-tax initiative to be placed on the ballot since 1991.

Darrell Breese may be reached at 352-2267or darrell.breese@frontiersman.com.