Anchorage sales tax faces its first test

Anchorage Mayor LaFrance has proposed a 3% citywide sales tax, according to the Municipality of Anchorage. The city held a public hearing on the plan at Loussac Library, where residents weighed in on how the new revenue would be used.

The proposal splits new tax revenue evenly across three areas: property tax relief, public safety and infrastructure, and support for childcare and housing. For homeowners, the plan could ease annual property tax bills, while businesses would see a shift away from Anchorage's current property-tax-heavy funding system.

Residents raised concerns about how a sales tax would affect spending on groceries, gear and daily expenses in a city where costs already run high.

If the proposal reaches the ballot, Anchorage voters would decide how the city funds core services going forward. The debate centers on whether the three-way funding split is the right long-term approach for the city.