Sales tax cap designed to promote efficiency

In his Jan. 6 letter to the editor, Joe Ross felt that “a majority of the voters go to the polls uninformed.” Unfortunately by his comments, Mr. Ross has proved that he should count himself among the uniformed.

First and foremost, the Borough assembly and mayor destroyed trust and credibility when they failed to automatically put the sales tax increase to a vote. Alaska Statutes Title 29 governs what a borough must and must not do. AS 29.45.670 states that, “A new sales and use tax or an increase in the rate of levy of a sales tax approved by ordinance does not take effect until ratified by a majority of the voters at an election.” By putting Prop 5 on the ballot, ACT gave the public the vote denied by the assembly.

Prop 5 doesn’t say that sales taxes can’t be increased. It does, however, assure us that any future increases will require our permission — which is what Title 29 intends. Remember the saying “Fool me once, shame on you. Fool me twice, shame on me?” Prop 5 does raise the acceptance bar to 60 percent approval. To raise the sales tax, the Borough will have to make a very compelling case for increased revenue.

During the mayoral election there was talk of an independent efficiency audit to determine what departments were working to capacity and what areas needed trimming. This would be money well spent. The Borough demonstrated a willingness to enhance revenue as the first step, not the last resort. Prop 4, Prop 5 and the yet to be accomplished property tax cap are designed to put the Borough government on a shorter fiscal leash, and to encourage efficiency first.

If Mr. Ross actually voted, he should have noticed that Prop 5 had nothing to say about capital project limitations. That was Prop 4, another initiative that ACT worked hard to put in front of voters. If Mr. Ross attended as many Borough assembly meetings as I have, he would see that there are many grants that are accepted by the assembly which fall below the million dollar threshold. Prop 4 comes into play mainly when there are large capital projects proposed that would increase the tax burdens for our and future generations. Good projects with broad support will still pass. I personally collected hundreds of signatures to put both Prop 4 and 5 on the ballot, so I know of what I speak.

We live in a representative democratic republic, not a dictatorship. We elect these representatives to do the boring, mundane details of government for us. It is proper that the governed are asked their permission for important decisions. The Alliance of Concerned Taxpayers is currently working to install some form of property tax cap and Mr. Ross is right about one thing. Without such a cap, the borough will raise property taxes rather than research efficiencies. If you (or Mr. Ross) would like to help us, you can call me at 252-4852 or visit the Web site at www.act-kpb.org.

Vicki Pate

Nikiski