Sales tax would ease property tax burden

To the editor:

The upcoming Oct. 6 vote on the borough sales tax is becoming a hot topic. While there is always opposition because we “just don’t want another tax,” this is not an additional tax. It is a tax package that includes trade-offs.

This law will cap the area-wide mill rate for real property at 7.3 (currently 9.98) — a reduction of about 27 percent. In addition to that, your primary residence will be taxed at a value of $20,000 below the assessed value, another 10 percent savings on a $200,000 home. The trade-off: Everyone will pay 3 percent sales tax on consumer items that cost up to $1,000.

More than 75 percent of tax dollars go toward schools. Right now, the entire burden is borne by property owners, including owners of vacant land and many people like me who have no children. The sales tax would shift part of this burden off the property owners and distribute it onto the shoulders of every man, woman and child who shops in the borough. I support a 3 percent sales tax for a reduction in my property taxes.

Many people complain about big government, about overspending, about government “not living within its means.” This vote is not about any of that. Those are different issues. Plain and simple, this vote is about a change in where the money comes from. It is diversification that is sorely needed to make our taxes a bit more fair to property owners. In addition, visitors to our borough (who use our roads and infrastructure) will now be contributing to our tax base when they purchase items.

Also proposed is that any sales tax revenue above the assembly’s established estimate will go toward reduction of the mill rate the next year. Assessed values will rise (and fall) with market values. They are out of our control. But capping the maximum mill rate at 7.3 is within reach.

The bottom line: don’t listen to complaints that have nothing to do with the matter at hand. It’s a simple question with a simple answer. Yes or no. “Shall we have a borough sales tax and lower property taxes?” I say yes.

Patricia Check

Wasilla