Borough assembly considers sales tax

MAT-SU -- Mat-Su voters may have another chance to consider instituting a sales tax this October, although the dispute over the need for a sales tax has already begun at the assembly level.

At its Tuesday meeting the assembly, through a split vote, agreed to set a public hearing to get input about putting a 1-percent sales tax and a 25 cent-per-ton tax on gravel, sand, rock, peat and grain on the October borough ballot.

This will be the ninth time since 1991 that borough residents will be asked to consider a boroughwide sales tax. When the issue was before borough voters in 2001, nearly two-thirds of borough voters voted against it. This ordinance differs from the most recent proposal, in that it's a 1-percent tax versus a 3-percent proposed tax in 2001.

Wasilla City Council Member Verdie Bowen spoke at the meeting, and shared a letter signed by himself, Wasilla Mayor Dianne Keller and three other city council members requesting the assembly postpone introduction of the ordinance until after borough administration had met with city officials to work out the details of the proposed sales tax. Bowen said the city was surprised at not having been made aware of the details of the tax or that it was coming forward.

"The borough would assume the duties of collecting the sales tax from the cities, whether or not it was the city's desire to do so," Bowen said. "We would have expected to have been presented with a proposal. In years past, we have been, but, to date, we have not."

See related story above for more on city officials' sentiments.

Mat-Su Borough Mayor Tim Anderson said he had spoken with Wasilla Mayor Dianne Keller, perhaps two weeks ago, about bringing forward a sales tax. Keller, at her office Wednesday, said she didn't recall the conversation.

"Sales tax is a big thing in the city of Wasilla and if he'd have mentioned that, I think I'd have remembered," Keller said. "If he had, I can assure you that my staff would have been over there, possibly in person, to pick up a copy of the document."

Keller said she learned that the matter was going to be discussed by the assembly when she received an e-mail from Assembly Member Jody Simpson with a link to the full tax proposal. She said while some council members have said they don't support the ordinance, their present lack of support may be linked to the borough's handling of the ordinance so far.

Assembly Member Bruce Bush attempted to postpone the public hearing until Aug. 3 in an effort, he said, to give borough officials time to work out the details of the ordinance with the three incorporated borough cities. That meeting is the last scheduled assembly meeting at which measures to be placed on the October ballot can be discussed.

Anderson said he asked for an early public hearing on the matter to give borough staff and assembly members plenty of time to work out potential problems with the ordinance before it goes on the ballot. He said he's not expecting the assembly to approve the ordinances at the June 29 public hearing, but hoped starting the discussion that early would result in a better ordinance.

"It'll take a lot of time to lumber through the several exemptions," agreed Assembly Member Jim Colver. "We're basically limiting our ability to craft something that's workable."

Assembly members Bush and Talis Colberg said they were concerned that starting the ordinance rolling so early may get area residents riled up for no reason, depending on the outcome of the upcoming special legislative session.

"If they do approve putting the [Percent of Market Value proposal] forward, then it becomes a judgment decision," Colberg said, pointing out that he feels voters may be reluctant to vote in favor of both the POMV plan and the sales tax.

Assembly Member Mary Kvalheim said she believed the assembly was caught in a "darned if you do, darned if you don't" situation. It was best, she said, that the assembly begin the public discussion early, rather than wait until shortly before the measures must be approved.

"We put in a transfer fee and they screamed and hollered because it was not out in a timely manner," Kvalheim said. "We put this out in a timely manner and they still scream and holler."

The motion to postpone the introduction of the ordinance failed through a tied vote. The overall motion to introduce the ordinance for a June 29 public hearing passed with Colberg and Bush opposed.

Contact Rindi White at rindi.white@frontiersman.com.