ANCHORAGE, Alaska (KTUU) – A coalition of Anchorage business leaders led by the Anchorage Economic Development Corporation announced the launch of Project Anchorage, an initiative that includes a year-round 3% sales tax.AEDC President Jenna Wright said the initiative would primarily lower property taxes for Anchorage residents and would also spur other economic activity.“Two-thirds of this revenue would go dollar for dollar to reduce property taxes by about 20%, and the other third of the revenue would go to new projects that make Anchorage an even better place to live, much like we did back in Project 80′s when we built the Anchorage Museum, the Egan Center, the coastal trail, and so many other gems that we still love as a city today,” Wright said.A commissioned study by the University of Alaska Center for Economic Development estimates the tax could raise $180 million per year. Under the plan, $120 million would go to reduce property taxes with the remaining $60 million to be used for new capital projects.The group is actively looking for ideas for projects to fund and is asking people to go its website to put in projects to be considered.Wright said the idea to fund capital projects with a sales tax came from Oklahoma City, Oklahoma, which in the ‘90s was facing a lot of the economic struggles that Anchorage is facing today. Wright said the city used sales tax revenues to invest in new sports facilities, parks, and entertainment facilities that made young people want to stay in their community.“As a result of these investments, Oklahoma City has attracted billions of dollars in private investment and their economy is absolutely booming,” she said.Anchorage has never had a sales tax; an effort to introduce one in 2006 failed, and another effort in 2016 was withdrawn before it went to voters.Kathleen McArdle, President of the Anchorage Chamber of Commerce, which supports the tax, said residents might be feeling differently now.“Anchorage residents have said in the past that they are not ready for a sales tax, but our perspective is that the time is now here that it could be more palatable,” McArdle said.The proposed tax wouldn’t be in effect for what the group called household necessities — things like groceries, gas, or medical expenses — it would cover other purchases, including food at restaurants.Laile Fairbairn, co-owner of four Anchorage restaurants, said she thinks the tax is necessary to make Anchorage a better place to live.“I don’t think anybody enjoys a tax, but I also don’t enjoy Anchorage as I see it right now, and I think that we have to do something and we need to get revenue to do that,” Fairbairn said.Ultimately, it will be up to the Anchorage Assembly whether the question of a sales tax will go before voters. If the Assembly approves, the proposition could appear on the April ballot next year.Copyright 2024 KTUU. All rights reserved.
