Mat-Su Assembly blocks sales tax proposal before public hearing

The Matanuska-Susitna Borough Assembly voted 6-3 Wednesday to remove a sales tax proposal from the agenda before it could reach public hearing. The vote prompted debate among assembly members over process and whether members should allow public discussion of competing tax reform ideas.

Assemblymember Stephanie Nowers had proposed a 1.5% sales tax outside city limits paired with a $75,000 property tax exemption for primary residences. The proposal was scheduled for introduction at the May 19 assembly meeting, which would have set a June 16 public hearing. Assemblymember Michael Bowles moved to postpone the ordinance indefinitely. The assembly handled the motion procedurally as removing the ordinance from introduction. The motion passed with Assemblymembers Ron Bernier, Bill Gamble, and Nowers opposed.

Bowles argued 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, and I don't think we should be spending time on this," Bowles said.

Mayor Edna DeVries questioned why the proposal should be pulled. She noted it was a proposal for another way to reduce property taxes in the borough.

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, that it just gives people ideas."

Assemblymember Maxwell Sumner noted that a similar proposal failed at the ballot box in the past.

"This does actually not repeal property taxes. It does give a discount, but it adds a sales tax on top of property tax," Sumner said. "The last time a sales tax in addition to the property tax was on the ballot, it failed 3 to 1."

Gamble objected to the procedural move. He said members should allow all proposals to reach 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. "I'd like to hear all of the details and the arguments on any piece of legislation."