Anchorage gas tax proposed to alleviate property taxes

ANCHORAGE, Alaska (AP) - A group of residents who provides advice to the Anchorage Assembly has come up with a way to alleviate property taxes.

The Budget Advisory Commission submitted a proposal on Thursday for a 10-cent per gallon gasoline tax in Anchorage, KTUU-TV reported (https://bit.ly/2xarDvd ).

Al Tamagni, chairman of the commission, said the proposed tax would generate about $14 million a year. The commission is recommending that 100 percent of the revenue be used for property tax relief.

Assemblyman John Weddleton praised the idea of taxing people who currently freely use city services while passing through.

“A lot of people are interested in getting some tax revenue from people from the valley and other parts of the state that use city services but don’t contribute, and this is one way to do that,” Weddleton said. “So I think it’s good to start kicking it around and see what people think about it.”

Assemblywoman Amy Demboski, however, was skeptical.

“They tell you it’s going to offset your property taxes, what happens if they change their minds?” Demboski said. “Now you’re paying high property taxes and an additional 10-cents a gallon on a gasoline tax. At a time of economic recession, when people are hurting, it’s going to hit families that much harder.”

The proposal could be approved by the Assembly without a vote of the people, Tamagni said. The commission is recommending that 100 percent of the money generated by the new tax be placed under the municipal tax cap.

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Information from: KTUU-TV, https://www.ktuu.com