Gas tax on ballot for advisory vote, borough assembly decides

The Matanuska-Susitna Borough assembly gave final approval for an advisory vote in the November borough election on a 7-cent-per-gallon motor fuel tax that would help pay for road improvements in the borough.

Stephanie Nowers, a member of the assembly, sponsored the resolution calling for the vote. It passed unanimously.

The assembly opted for an advisory vote instead of simply adopting the tax, which it has the power to do.

This wording for the ballot proposition was approved: “This advisory vote asks if the Matanuska-Susitna Borough Assembly should adopt a 7-cent--per-gallon fuel tax for a 1.5-year trial period as proposed … with the intent to help fund road maintenance and construction and offer property tax relief.”

“The fuel tax would be charged to wholesale distributors of gasoline and diesel. Heating, aviation and marine fuel would be exempt. The tax would automatically expire after 1.5 years unless renewed by the Assembly,” the ballot proposition will read.

State law does not allow legally dedicating the revenue, but the borough assembly can direct its use and a separate report be made to track revenues and expenses for transparency, according to information prepared for the the ballot proposition.

The state Legislature basically follows the same procedure when state general fund revenue is intended for certain purposes, such as University of Alaska tuition to help support the university and alcohol and marijuana tax revenues to support treatment and substance abuse education.

In these cases the Legislature labels revenues as “designated” for certain purposes but are not legally “dedicated,” which is barred by the state Constitution. The Oct. 7 vote is advisory only and its results are only to guide the Assembly’s decision on a gasoline tax.

Borough manager Mike Brown previously told the assembly that if the borough is to undertake near-term expansion of schools and roads some new source of revenue is need other than borough property tax income, which will increasingly burden property owners.

If more schools and roads are built and there are no new revenue sources within a few years an increasing amount of Mat-Su property tax revenues will go to pay for these new projects, Brown warned.

One advantage of a motor fuel tax, he said, is that nonresidents who drive to or through Mat-Su for recreation or other reasons will pay taxes. Currently they do not pay taxes but still use the borough’s road, creating wear and tear.

In another action the assembly approved a lake management water recreation use plan for Fuller Lake, which is within the borough, that would impose restrictions on motorized watercraft, a measure aimed mainly at jet-ski users who create safety hazards and other nuisances in the lake, people speaking to the assembly said.

The ordinance adds Fuller Lake to a list of other lakes in the borough where “quiet hours” are established between 10 p.m. and 8 a.m. In addition, a “no wake zone” is established out to 50 feet from shore, which is effectively a restriction on speeds that create wakes within this corridor.

Fuller Lake covers 39 acres and has a five-foot depth. There are 29 parcels of private property around the lake and in a poll of landowners over 60% showed they were in favor of restrictions on recreational watercraft like jet-skis. The resolution passed with assembly members Maxwell Sumner and Dimitri Fonov voting in opposition.

Interestingly, the assembly voted in opposition to a recommendation from the borough Planning and Zoning Commission, which opposes the proposal. The management plan was put forth by property owners around the lake who were concerned about safety and noise.

Borough planning staff who spoke at the assembly meeting said the planning commission did not explain its action but its members had indicated informally that they did not like lake management plans because these were state-owned water bodies open for public use.