http://www.adn.com/opinion/story/6770333p-6659164c.html"Give Anchorage Assemblyman Dan Coffey credit. He's talking up an idea that would give most local politicians the heebie-jeebies: a local sales tax. Mr. Coffey knows Anchorage relies too heavily on property taxes to pay the bills, and he has offered a sales tax to add to the city's revenue mix.
The Assembly held a work session Thursday on the proposal. Mr. Coffey suggests a levy of 3 percent on goods, but not on services, with all proceeds (net of collection costs) devoted to property tax relief. Most food would be exempt, and the tax on any one big purchase, like cars, would be capped at $200. He's aiming to get a tax proposal on the ballot in the regular city election in April. To pass, the sales tax would have to get 60 percent of the vote.
That 60 percent hurdle is almost impossibly high, so, practically speaking, the whole discussion may be moot. Nonetheless, it's worthwhile to have a citywide discussion on ways the city might diversify its revenue base.
The biggest question is this: Should a sales tax simply offset property taxes or should it help improve city services, such as schools, police coverage and park maintenance?
It's a tough sell either way."