Tax repeal up to voters

September 20, 2005

DARRELL L. BREESE/Frontiersman reporter

WASILLA - After a fight with the Mat-Su Borough Assembly over implementing a tobacco excise tax, Mat-Su voters will consider a proposition on the Oct. 4 ballot attempting to repeal it.

If passed, Proposition 7 will abolish the $1-per-pack tax on cigarettes enacted by the assembly on May 17.

After approving the tax, the assembly designated the estimated $4 million in revenue to fund a difference between money requested by the Mat-Su Borough School District and money budgeted by the assembly for schools.

Nola Bragg, organizer of the petition drive that got the proposition on the ballot, questions the motivation of the assembly in passing the ordinance initially.

"It's just a money grab," Bragg said. "One assembly member said that the ordinance they passed was all about raising revenue. That doesn't make sense."

Bragg referred to a comment made by assembly member Talis Colberg, who said, "We are not here because we are concerned with people's health. We are talking about this because we are over budget."

Bragg believes that if the borough wants to raise revenue, it should target a large group.

"They estimated that 29 percent of the borough are tobacco users," Bragg said. "That is a small group. Considering recent studies found that over 60 percent of the borough residents are obese, why aren't they taxing food? It is a larger group and they could make more money."

Besides being what Bragg calls an unfair tax, she also believes it to be an assault on her personal rights.

"They can't outlaw cigarettes so they are trying to make them too expensive," Bragg said. "I'm an adult. If I want to do something that is legal I shouldn't have to pay taxes to do it. Or are we going to start charging fishermen a severance tax for each fish they catch? Or add a dollar-a-mile car tax?"

Bragg told of an individual becoming verbally abusive upon seeing a flyer in support of the repeal on a car window.

"They were yelling that the tax was to improve your health," Bragg said. "I guess I should feel all warm and fuzzy that people are concerned for my health. But we're talking about a legal activity and my right to choose."

"It would be different if the fund were going to pay for the health issues, but they're not," Bragg concluded.

Mike Butler, co-sponsor of the proposition and owner of Up in Smoke 2.0 discount tobacco store, hopes the matter will soon be decided.

"We collected over 3,000 signatures opposing the tax when they first passed it," Butler said. "And we were able to gather signatures from nearly 2,000 voters to get the initiative on the ballot in less than three weeks. It seems obvious to me what the people want."

Even during the May 17 public hearing, most of the participants in the public-comment period spoke in opposition to the tax - 24 of 40 spoke against the tax and only four spoke in favor of the tax as a revenue source. Following the debate, the assembly voted 4-3 in favor of the tax, with members Colberg, Lynne Woods and Jody Simpson opposing it.

Assembly member Betty Vehrs, who voted in favor of the tax in May, supports the people having the opportunity to express their will through a vote.

"I think the process is excellent," Vehrs said. "I'm very interested to see how the people feel about the issue. I've always favored letting the voters make the decision."

Vehrs went on to indicate that if the repeal proposition passes, the assembly will have to find another source of money to make up for the lost education revenue.

The American Cancer Society, American Heart Association and the American Lung Association oppose Proposition 7 solely because of the health benefits a possible reduction in the number of smokers would bring.

"I'm concerned as to why the Heart Association is concerned with a tax issue," Butler said. "This is not a health issue. It's about generating revenue. Plus it is a local initiative started by local people. Why are they coming in with their deep pockets using health concerns to scare people into voting?"

Contact Darrell L. Breese

at 352-2267 or darrell.breese@ frontiersman.com.