Fuel Tax Discussions Coming to Borough Communities

Just after the new fiscal year began, Mat-Su Borough Manager Mike Brown introduced a proposed fuel excise tax as a way to reduce or eliminate the need for debt service to pay for area-wide projects. But he says it’s just one of several options the Assembly might explore. 

“So actually these alternatives that were presented were developed back in 2021. There was a discussion ongoing with the Assembly at that time about revenues because the State had shortfunded school bond debt reimbursement in the past and it created problems.”

Brown says the other revenue options are a mix of raising existing taxes and new taxes and is clear that none of these are proposed at this time, but are options for the Assembly to review. Marijuana sales, tobacco excise, and bed taxes are all already enacted and could be increased. Alcohol sales, severance or gravel, and an area-wide sales tax are also options. Excise taxes can be enacted by the Assembly, while sales taxes must be voter-approved. 

But Brown points out that none will be able to fully take the place of property taxes, even if all of them were implemented. 

Borough representatives will be coming to the communities to discuss the proposed fuel excise tax ahead of the November election. The Willow Community Center will host an open house on September 23 at 6pm. There will be an open house in the Talkeetna area on October 23 at 6pm, though a location has not yet been selected.     

The fuel excise tax will be the topic of an advisory ballot question at this November’s election. 

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