PUBLISHER’S NOTEBOOK: Thinking about our local retailers and taxes

Tuesday at the Greater Wasilla Chamber of Commerce luncheon three public officials were given the opportunity to present facts about the proposed Mat-Su Borough sales tax. The borough assembly is set to vote on, as originally written, a 3 percent sales tax boroughwide at Tuesday’s borough assembly meeting to put the measure on the October ballot. The borough school board, on Wednesday night, however, voted to drop that proposed rate to 2 percent.

This would be piled on top of any city sales tax that exists in the cities of Wasilla, Palmer and Houston. Wasilla Mayor Bert Cottle, Mat-Su Borough manager John Moosey and Mat-Su Borough School District Superintendent Dr. Monica Goyette each spoke up to 10 minutes on the subject. Goyette spoke to why the district board members sent a request to the borough to put a sales tax on the October ballot. Mayor Cottle spoke as to why the proposal, as written, should not be on the ballot and Moosey spoke about the process to putting it to a vote at the assembly meeting on August 1st.

As I listened to each person speak it became very clear that, and to Mayor Cottle’s point, implementation of the sales tax may not be ready for prime time. His point was, why not have the school district work through this year’s approved budget and look at next year’s ballot to be better prepared. Superintendent Goyette would like revenue this year for increased needs over prior year since their budget is flat against last year.

At the end of each person’s opportunity to speak came the audience question session. Lots of good ones were asked while a couple bordered on incoherent ramblings and a typical cry of “cut the administration.” I was particularly bothered by Borough Assembly member George McKee’s question because it made him sound ill-informed. After stating that he is a farrier and shoed horses that are used for riding lessons for students, he asked why horse riding lessons are a core subject in the school district. The first time he asked it was a head scratcher. Where did he get it is a core subject? When the question was answered that it’s part of a home school parent’s right to choose for a physical education course. McKee, a bit frustrated, asked at least two more times but why is it a core subject? By this time, I’m thinking to myself a different question. Why is this guy in a position to help decide whether this measure should be on the October ballot? I wonder if anybody pulled him aside to tell him once and for all that horseback riding is not a core subject in the Mat-Su Borough School District.

The last question was asked by Wasilla Chamber President Beth Libbey. Her question received applause by the audience. The question was basically, if we have all of these combined taxes, borough plus municipalities, won’t people just shop out of town?

The short answer is yes. And judging from the Facebook comments on our story published in our Wednesday edition covering this luncheon discussion, it’ll happen. There is already retail bleed off into Anchorage as is. With Anchorage at this point having no sales tax that bleed will grow. Moosey stated the fact that 33 percent of Mat-Su residents commute every day to Anchorage. Having worked as a retail store manager for some 19 years, my guess is we’re already looking at lost revenue in the Valley in the neighborhood of 45 percent. Anchorage has an advantage over the local retailers with stores like Sam’s Club, Costco, Kohls and JC Penney’s. Not to mention local and national retailers alike are fighting Amazon. Our brick and mortar retailers are facing more challenges than ever in their history.

If we’re talking a combined 5 to 6 percent in sales tax on goods purchased in the municipalities and three percent in the borough, I can guarantee it will grow. Also in his comments, Moosey revealed a conversation with his Anchorage counterpart about a sales tax — whether Anchorage is considering implementing one. He was told they are considering it, but Moosey was told it sure would be a lot easier if the Mat-Su did it first. Moosey responded that likewise, it would be easier for the Mat-Su to pull it off if Anchorage did it first.

We should place the burden on Anchorage.

They have enough built-in advantages, including the fact that they won’t have a combined sales tax since they are a municipality, so any tax would be by entity and one tax. Until Anchorage implements a sales tax, we should hold off on presenting this proposal for vote in October.

The phrase “I’m all for funding education” was used quite a bit at this meeting and you can throw me in on that sentiment, but the impact on the local retailers and its employees is not a sacrifice we should make.