Mat-Su Assembly blocks sales tax proposal before public hearing

The Matanuska-Susitna Borough Assembly voted 6-3 Tuesday to remove a sales tax proposal from the agenda before it could reach public hearing. The vote blocked Assemblymember Stephanie Nowers from introducing a 1.5% sales tax outside city limits paired with a $75,000 property tax exemption for primary residences.

Assemblymember Michael Bowles moved to pull the ordinance. He said the proposal would add taxes rather than replace them.

"What this ordinance aims to do is actually introduce a sales tax on top of already existing taxes, and there is no appetite for that in my opinion," Bowles said.

Nowers defended the proposal as a way to lower property taxes and generate public discussion.

"I think it's really important to have public input, and this is just another idea on the table," Nowers said. "I've heard loud and clear that people want lower property taxes, and this is one way to get there."

Assemblymember Bill Gamble objected to blocking the proposal before public hearing.

"I think it's really bad precedence to deny an assembly member the ability to have their legislation at least heard and discussed, whether you agree with it or not," Gamble said.

Assemblymember Maxwell Sumner noted a similar proposal failed at the ballot box in the past by a 3-to-1 margin.

A separate sales tax proposal from Bowles remains scheduled for a June 16 public hearing. That proposal would replace the area-wide property tax with a 6.5% sales tax.

The assembly voted 4-3 to reconsider the removal, but the motion failed because reconsideration required five affirmative votes. Assemblymembers Dee McKee, Ron Bernier, Gamble, and Nowers supported reconsideration.

Nowers said she would bring her proposal again. The assembly has not scheduled another vote on it.