1. United States
2. Alaska
3. Letter

I’m writing to oppose the proposed 3% municipal sales tax. While Anchorage needs stable revenue, a broad sales tax would place the heaviest burden on residents with the least ability to absorb higher costs. Sales taxes are regressive by design. Under this proposal, property owners—including large rental companies—would receive property tax reductions, while renters would pay the full sales tax without any offset. Renters already experience annual rent increases tied to inflation, while homeowners with fixed mortgages remain largely protected from rising housing costs. This structure relies on the idea that tax breaks for property owners or large firms will eventually benefit renters—a premise repeatedly disproven by decades of research showing that trickle-down economics rarely lowers rents, raises wages, or passes meaningful savings to consumers. Anchorage has more equitable options that raise revenue without increasing the cost of basic goods for working families. 1. Update business license fees. Anchorage’s $50 annual fee is far below regional norms. Raising it to even $150 would remain modest while ensuring businesses contribute fairly to the infrastructure they rely on. 2. Implement a targeted Gross Receipts Tax (GRT). A 1% GRT on businesses with 20+ employees would generate substantial revenue from companies that extract significant value from Anchorage. Exempting small businesses preserves local competitiveness, and even full cost pass-through results in a much smaller consumer impact than a 3% sales tax. 3. Enforce and modernize short-term rental taxation. Many STRs operate like hotels but inconsistently pay the required 12% bed tax. Stronger enforcement and clear licensing requirements would capture revenue from operators who currently avoid regulation while reducing housing supply. 4. Explore luxury and non-resident-focused taxes. A luxury goods tax or additional tourism and non-resident worker fees would ensure higher-income consumers and visitors contribute a fair share without raising everyday costs for Anchorage families. Anchorage needs a sustainable revenue strategy, but a regressive sales tax would place the greatest burden on those already struggling. More targeted, fair, and modern alternatives are available. I respectfully urge you to oppose this sales tax and instead advance revenue measures that protect renters and working families while targeting high-impact businesses, non-residents, and luxury consumption to contribute proportionally.