Mat-Su Assembly sends property tax swap to November ballot, 5-2

Voters in the Matanuska-Susitna Borough will decide in November whether to trade a roughly $700 annual property tax break on owner-occupied homes for a new 1% borough-wide sales tax. The Mat-Su Borough Assembly approved the ballot measure Tuesday after more than an hour of debate and three failed amendments, with Assembly members Dee McKee and Michael Bowles voting no.

The Case For

Assembly member Stephanie Nowers framed the pairing as the only proposal that keeps the tax benefit local. "This is the only proposal that we've had before us that ensures the benefit of reduced property taxes only accrues to people who live here," Nowers said. "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."

The Case Against

Bowles rejected that framing. "This does not solve a problem of high property taxes at all," he said before the vote. "What this does is bring in another tax on top of the taxes we already have." After the motion passed, he added: "We as a body just moved something to the ballot that will increase our taxes if the voters vote for this. This is how it started in Anchorage, and I vowed when I ran for this position that I would do everything possible to be a brick wall against the things that are happening in Anchorage bleeding out here."

McKee, who voted against the final measure, called the outcome uncertain. "I know that the voters have made it very clear that they don't want us taking more of their money," she said. "It's an experiment."

What Comes Next

The assembly rejected three amendments before passing the ordinance as written. The measure goes to voters on November 3.