Candidates split over sales tax

MAT-SU -- Mat-Su Borough Assembly candidates are split over whether they support the proposed 1-percent sales tax Mat-Su voters will cast a vote on at the Oct. 5 election.

Candidates from District 2 share similar views on the tax -- both said at a recent Frontiersman candidate forum they'd rather see other methods of bringing in revenue to the borough, but a sales tax might help solve the problem in the near future.

"I don't like a sales tax -- personally, I think it's a regressive tax -- but … you generally have a commercial sector that pays the lion's share of the property tax. That, then, goes to pay for services. We don't have that, so we're left with the situation of finding other sources to raise revenue," District 2 Assembly Member Bill Allen said. "I probably will vote for a sales tax because, right now in our borough government, our expenses exceed our income … If we want to maintain the level of services we have now, we need more revenue."

Helene Antel, who's challenging Allen for the seat, said she believes it comes down to what people were willing to give up.

"Do you want to continue to fund at the current level of services?" Antel asked. "I don't like any taxes, but I will be voting in favor of this sales tax, because I don't know of any other short-term way to provide funding. Second, we need to have a long-term plan. We could be an Aspen, Colorado. We can encourage businesses to move here that will not take away the quality of life, but will improve it."

District 1 candidate Lynne Woods suggested first making sure legislators fund the items that have become unfunded mandates, such as property tax exemptions for seniors and increases to employee retirement accounts. That, she said, would generate several million dollars -- enough to knock the borough mill rate down by more than one mill. Beyond that, she said, after consulting with a certified public accountant who reviewed the borough and school district's budgets, she believes the borough is spending wisely, and the problem is on the revenue end of the discussion.

"I support a short-term increase in revenue," Woods said. "Do I like it? No, but I don't see any choice."

District 1 incumbent Bruce Bush said he was skeptical that a one-percent sales tax would net the borough any profits.

"This is going to hurt us local people just as much as it targets Outsiders," Bush said. "Maybe two percent would be more appropriate. But I think we can get by this with some good planning and better incentives for industry -- and the port is almost online."

Tom Bergey is also challenging Bush for his District 1 seat on the assembly. In a candidate forum held Thursday evening by the Wasilla Chamber of Commerce and the Valley Alliance of Labor Union Employees, said he couldn't support the sales tax proposal as it was written.

"I'm very hesitant to give the borough an unrestricted revenue stream," Bergey said. "I could support a property tax cap or some relationship between [the tax and specific] services."

The mixed sentiments of the candidates seem reflective of how the community is feeling about the measure. According to information from the borough, the tax could generate more than $6 million in revenue, although that figure is primarily based on sales tax receipts from the cities of Palmer and Wasilla. Receipts from businesses outside the city limits, borough staff have said, are difficult to estimate because their revenue has not been tracked. Mat-Su Borough Manager John Duffy said the cost of implementing the ordinance is estimated at about $100,000, although that's still being determined. Duffy said Wasilla city officials have said they plan to collect the tax on their own, but the cities of Palmer and Houston are still evaluating whether they'll collect the tax themselves or allow the borough to collect both the borough tax and city sales taxes.

Duffy said he believes Valley residents are split over the issue, but has seen a lot of support for the measure when he's taken part in informational presentations Mayor Tim Anderson has given at several community council meetings around the borough.

At an informal poll conducted at the Wasilla Chamber of Commerce meeting Tuesday where the sales tax proposal was discussed, Duffy said he counted more hands in favor of the tax than opposed, although a number of people in the audience didn't indicate their opinion either way.

"Generally speaking, people seem to be supportive," Duffy said.

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