Anchorage Mayor and Assembly Chair back tax on motor fuel
Both Anchorage’s mayor and chair of the Anchorage assembly are looking to offset property taxes with a $0.10 per gallon motor fuel tax as early as March 1st of next year.
“We’re simply doing this to offset property taxes because a one trick pony like Vegas was on sales tax, if you’ve got a downturn in the economy has disastrous results. So we’ve been trying to figure out what we can do,” said Assembly Chair Dick Traini.
The excise tax proposal will be introduced at the Anchorage Assembly meeting on October 24th with a public hearing planned for November 7th.
The extra cost at the gas pump would be in addition to the state’s $0.08 per gallon tax. The owner of Garrett’s Tesoro in Anchorage says the price of gasoline and diesel is already high enough.
“The more we put into taxes the more it takes out of the pockets of consumers and people need the money for food, shelter, clothing,” said Nelson Garrett.
Traini says the tax would save home owners an average of $60 to $360 per year on property taxes. He says it's dependent on the results of an initiative planned for next year that may increase the tax exemption on a home’s assessed value from $20,000 to $50,000.
The proposal would require six votes by Anchorage assembly members for it to pass.