A $700 property tax break, paid for by a 1% sales tax

Mat-Su homeowners could take about $700 off their annual property tax bill. The catch is that everyone in the borough would start paying one percent more on what they buy.

That is the trade the Borough Assembly put on the November ballot Tuesday, after more than an hour of debate. Assembly members Dee McKee and Michael Bowles voted against sending it to voters.

The pitch is that it keeps the benefit local. The exemption would apply only to owner-occupied homes, so only residents get it, while a sales tax collects from everyone who spends in the borough. "Every other proposal we've talked about would benefit large outside corporations who do business here and will not pass the savings on to us," said Assembly member Stephanie Nowers.

Bowles wasn't buying it. "This does not solve a problem of high property taxes at all," he said. "What this does is bring in another tax on top of the taxes we already have." He cast the measure as Anchorage's habits creeping north.

McKee, who also voted no, was blunter about the uncertainty. "It's an experiment," she said.

Who comes out ahead depends on the household. Homeowners who spend modestly do well. Renters get no exemption and pay the sales tax like everyone else. Voters decide Nov. 3.