ANCHORAGE (AP) -- Months before state voters consider a property tax cap initiative, Anchorage Mayor Rick Mystrom wants to give the city's homeowners a $29.5 million, one-time tax cut.
The city should use half of a $40 million police and fire retirement surplus to pay for the bulk of the cut, Mystrom said Tuesday. Most of the rest of the money would come from budget savings this year, he said.
Giving residents a tax break will show voters the city can handle its finances responsibly as they consider the ballot initiative this fall to cap property taxes at 10 mills, Mystrom said. The statewide initiative, if approved by voters, could cut more than twice that amount.
The cut would be Mystrom's biggest in six years as mayor if the Assembly approves it. Taxpayers would see the difference in their June tax bills, the mayor said.
Mystrom's plan won't help the city deal with an estimated loss of $73 million from the city and School District budget next year if the tax cap proposal passes in November.
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