The Mat-Su View : Assembly passes sales tax, mayor vetoes it

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Sandhill Cranes at the Matanuska Experiment Station on Saturday August 22, 2009. The cranes have up to a 7 foot wing span and are among the tallest birds in the world. They gather into flocks for the migration south.

Meet your Alaska Farmers

The Mat-Su Farm Bureau organized the first "Meet Your Alaskan Farmers" tour recently. Participants visited four farms in the Valley and were treated to a catered sit-down lunch of elk, buffalo, vegetables, produce, strawberries and ice cream - all Alaska grown products. The tour was organized to promote farmer's markets and the local products readily available at the markets.

Governor's Wasilla Picnic

Thousands of people attended the Governor's Picnic in Wasilla, Friday, July 24, 2009. Sarah Palin served up hotdogs, signed autographs and conducted a military appreciation ceremony.

Assembly passes sales tax, mayor vetoes it

Posted by matsublog

Posted: July 29, 2009 - 12:31 pm

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From Rindi White in Wasilla:

The Mat-Su Assembly Tuesday night agreed to put a 3-percent sales tax/property tax cap measure on the October ballot.

The measure passed after a few tweaks. What began as a property tax cap of 7.8 mills - that's $780 for every $100,000 of property value - ended up as a 7.3 mill rate. And instead of a $10,000 reduction in property assessment, homeowners would get $20,000. So for the average home, valued at $209,000, homeowners would pay taxes on $189,000, a savings of about $146. The changes were made in an effort to avoid asking voters to pay more tax. The assembly members who sponsored the tax measure, Cindy Bettine and Pete Houston, said their goal was to diversify borough revenue. The borough depends primarily on revenue from property taxes.

Five assembly members voted in favor of putting the measure on the ballot: Houston, Bettine, Lynne Woods, Robert Wells and Michelle Church. Assemblymen Tom Kluberton and Mark Ewing voted against it.

Wednesday morning, Borough Mayor Talis Colberg vetoed the measure. He called it a "reallocation of more taxes on the working poor in the midst of serious recession." Read his veto letter here.

Colberg also stated that the benefits of the property tax cap and assessment reduction would evaporate as property values rise.

The Assembly is scheduled to consider the veto at its Aug. 4 meeting.