Proposition 1 will provide tax relief for resident homeowners

Editor’s note: Letters to the editor pertaining to the Oct. 1 municipal election should be submitted by Wedensday, Sept. 25, to ensure publication prior to the election.

 

 

This letter is in response to Nikiski Fire Service Board members statements against Proposition One.

The tax relief provided by Proposition One represents a very small percentage of the overall budget, which has been more than offset by growth of the overall economy. While the data provided to argue against Proposition One was factually true, the failure to compare the total budget picture against the “losses” is very misleading and does not promote an honest debate of this issue.

For example, the North Peninsula Recreation Service Area property tax revenue is over $1.4 million. Their “Tax Revenue Loss” of $27,124 is a relatively small 1.8 percent of total tax revenue. To infer that such a cut is significant is a gross exaggeration of the facts.

The Borough’s ratio of “Tax Revenue Loss” is similarly diminutive. The message conveyed by reporting a $1.3 million “Tax Revenue Loss” vs. a total reduction in property tax revenue of less than 3 percent is very different.

Annual tax increases in most service area budgets have been much greater than their estimated “tax loss” from Proposition One.

Annual Tax savings for each resident homeowner within service areas include: Nikiski $300.60; Anchor Point $313.50; Kasilof $257.10; Ninilchik $246.00. City residents will save from $135.60 to $215.10 each year.

The Nikiski Fire Service Area budget is over $4 million, while their “loss” is less than $79,000. Based on the data provided by the Mayor’s office, the “loss” represents less than 2 percent of their annual property tax income. Again, that’s not a substantial financial loss.

Don’t be misled by an incomplete story. Boroughwide annual tax revenue increases have exceeded the tax relief provided by Proposition One.

It is true that commercial and industrial property owners will pickup a slightly larger portion of the Borough tax liability with the bulk of that coming from oil and gas properties which are already taxed at the state imposed maximum of 20.0 mils. Proposition One will return more oil and gas taxes from the state to the borough with no tax increase for anyone.

Proposition One will achieve a fair, equitable and appropriate level of taxation for all homeowners with no loss of borough service.

Please learn all the facts and vote yes on Proposition One.

James Price

Alaskans for Property Tax Relief Now

 

 

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