Assembly to Consider Gravel Tax

Large gravel pits in the Mat-Su Borough have an outsized impact on the community in terms of dust, noise, and traffic, according to District 2 Assemblymember Stephanie Nowers. And, according to her, residents have been asking for a gravel tax for a long time. 

Nowers’ proposed natural resources severance tax is on next week’s Assembly agenda. She says that the proposed legislation would diversify the tax structure and bring in an estimated $1 million of added revenue to the Borough.

Nowers says the proposed tax would only impact large pit operations producing over 150,000 tons per year. There are only about 20 pits that large in the Borough. If passed, it would mean a 25 cent per ton tax on those larger operations. It will not affect smaller gravel businesses.

She says the Borough doesn’t know how much gravel is leaving, only how much the operation is permitted for. And a lot of the Borough’s gravel goes to Anchorage. She expects it to add about $6 to the cost of a truckload of gravel, if the operation chooses to pass along the cost. 

The Assembly will discuss the proposed tax at the June 16th Assembly meeting.