Boroughwide sales tax goes down in flames

One thing the proposed boroughwide sales tax appears to have accomplished is increase participation in the local election by attracting 21 percent of the more than 50,000 registered voters. That’s a vast improvement over the special election that drew 7 percent, but still a disappointing turnout given the magnitude of impact this ordinance could have had on Valley residents if passed.

What it didn’t accomplish is get itself passed.

It’s obvious the vast majority of people simply didn’t believe their tax burden would be eased. They also, rightly believed, the tax proposal as written benefited distant land owners, national business chains and Anchorage playground owners more than it did locals. All the previous named entities would enjoy a property tax break, but would not help pay the bills with a sales tax because they don’t shop here like locals do.

Many residents figured out while their taxes on their house or business might drop in the short term, they would be nickeled and dimed on groceries, heating bills and other necessities.

Then the proponents of the bill forgot to figure in all those people who live in Palmer, Wasilla and Houston who already pay sales taxes. Why would they want their taxes doubled when they get absolutely nothing more for the increase?

A 3-1 vote against the sales tax indicates people wanted more clarity, or maybe they just didn’t believe their property taxes would stay down. There’s also a general mistrust of local government right now. With three new members on the assembly, maybe the trust can be restored.

This is also a time of economic unease. So timing could have played into the result as well.

Maybe that’s why the school bond issue failed too.

In the future, a sales tax will come up again and likely a school bond.

These issues need to be given a full airing at as many town halls as possible so the assembly members can get a good idea of what will fly and what won’t. Just putting a new tax proposal on the agenda won’t cut it and the assembly should have learned that lesson before now.

It’s understandable the borough government would like to have more than one revenue stream, but the little guys out there need to be assured their taxes won’t go up while distant owners’ and large corporations’ taxes go down.

Transparency is an overused word these days, but it certainly will need to play a much bigger role the next time the assembly decides to change they way we pay taxes in this borough.