Anchorage Assembly Approves $6 Million Reduction in Property Taxes

April 24, 2012|by Jason Lamb | Channel 2 News

ANCHORAGE, Alaska — Tuesday night, the Anchorage Assembly voted to return more than $6 million to Anchorage property taxpayers.

The rebate came as Mayor Dan Sullivan and lawmakers debated what to do with the money, which the city received unexpectedly as a result of high state oil tax profits that are split among Alaska communities, known as revenue sharing.

Sullivan wanted to spend the money on city services, including about $2 million to pay for the extra snow removal during this record-breaking winter, and increased fuel costs, along with other city hall efficiencies.

But in a 9-2 vote, assembly members voted to send all $6 million back to taxpayers, reducing the amount of money they have to pay to City Hall. Only assemblymembers Jennifer Johnston and Patrick Flynn voted against it. It was a move originally proposed by assemblyman Bill Starr.

"Utilities have gone up, the cost of everyday living is huge," Starr told Channel 2 before his vote. "This will bring us back flat neutral, this will give us a no tax increase and that's my goal."

Tuesday night was the last opportunity to make budget adjustments for 2012, before the assembly approved the final mill levies to be sent to taxpayers.

Several assembly members seemed concerned that Sullivan's office appeared to be banking on the extra state money to make his budget balance, and avoid cuts to the city budget.

"Yes, we were prepared to make the cuts if we had to," Sullivan told Channel 2. "But with the extra revenue sharing, we don't have to, so why go through that exercise if it's not necessary?"

Assembly members did approve an increase of $250,000 to the city budget, which will pay for beginning preparations for a police academy in the spring of 2013.

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