​​​​​​​​​​​​​​​​​​​Tax Reform Proposals

When the Anchorage Assembly voted to indefinitely ​postpone the Project Anchorage sales tax proposal in March, several members committed to continuing the conversation about municipal revenue.

Now, ahead of the January deadline to add questions to the 2026 Regular Municipal Election ballot, a handful of tax proposals are on the table for discussion. Browse this page to learn more about the proposals introduced my members of the Anchorage Assembly. 

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Public Process​

Per the Municipal Charter​, enacting sales taxes require​s voter approval. There are multiple ways to get a proposition on the ballot, one being through Assembly action. 

​Public Hearing​

An ordinance containing the proposed ballot pr​oposition language is introduced and set for at least one public hearing. The Assembly can continue the public hearing to future meetings. 

The public is invited to weigh in during the​ hearing. Learn more about providing public testimony.

​Assembly Action

The Assembly's legislative process may include committee hearings, worksessions and postponement until an ordinance is ready for action. 

The Assembly will take action after the public hearing is closed. A ballot proposition ordinance that proposes a change to Charter must be approved by at least 8 me​mbers, or 2/3 majority, to be placed on the ball​ot.​​

​Majority Vote

If the Assembly approves the ordinance no​ later than 70 days before Regular Municipal Election Day​, the ballot proposition will appear on the ballot. ​​

A ballot proposition amending the Charter can be approved by a simple majority of voters.​​


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Penny for Progress 1% Sales Tax
5% Short Term Rental Tax
2% Bed Tax Increase
3% Sales Tax

Penny for Progress 1% Sales Tax

Sponsored by Assembly Community & Economic Development Committee Chair George Martinez

In August 2025, Assembly Member Martinez introduced the “Penny for Progress" Strategic Investment Initiative, AO 2025-96, a proposal to put a 1% sales tax on the ballot. The tax proposal responds to community discussions surrounding Project Anchorage, reflecting policy choices to start small, commit to an “all-in" approach for community members and visitors alike with limited, state-mandated exemptions, and dedicate the revenue to high-need investments: housing, infrastructure, and behavioral health services. 

Read the Ordinance   ​Read the Memo   Read the Sponsor's FAQs   ​Learn Mor​e


Legislative History

  • December 16, 2025 – Potential Assembly Action
    AO 2025-96 will appear before the Assembly next at their Regular Meeting on December 16.
  • November 18, 2025 – Postponed Assembly Action
    During the Regular Assembly Meeting on November 18, the Assembly voted to postpone action on AO 2025-96 to their Regular Meeting on December 16.
  • October 21, 2025 – Continued Public Hearing.
    The continued public hearing on AO 2025-96 was held at the October 21 Regular Assembly Meeting. The Assembly voted to postpone action to the meeting of November 18. 
  • October 2, 2025 – Presentation to the Community & Economic Development Committee
    Assembly Member Martinez presents the proposal to the Assembly Community & Economic Development Committee and invites feedback. View presentation slides.
  • September 9, 2025 – Public Hearing​
    The public hearing on AO 2025-96 opened at the September 9 Regular Assembly Meeting. Members voted to continue the public hearing to the Regular Assembly Meeting on October 21.
  • August 26, 2025 – Introduced Ordinance
    Assembly Member Martinez introduces AO 2025-96 to submit the “Penny for Progress" Strategic Investment Program to voters as a ballot proposition.

5% Short Term Rental Tax

Sponsored by Assembly Chair Christopher Constant and Assembly Budget & Finance Co-Chair Daniel Volland

In August 2025, Assembly Members Constant and Volland introduced AO 2025-97, a proposal to put a 5% tax on short term rentals in the Municipality on the ballot. The proposal dedicates tax revenue to housing and related infrastructure investments. If approved by voters as proposed, this tax would increase the total tax on short term rentals to 17%, while keeping the bed tax on hotels, motels, and other tourism lodging at 12%.​

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Legislative History

  • December 16, 2025 – Potential Assembly Action
    AO 2025-97 will appear before the Assembly next at their Regular Meeting on December 16. ​
  • December 2, 2025 – Postponed Assembly Action
    During the Regular Assembly Meeting on December 2, the Assembly voted to postpone action on AO 2025-97 to their next Regular Meeting on December 16. Listen to the debate on the motion to postpone. ​
  • ​November 18, 2025 – Postponed Assembly Action
    During the Regular Assembly Meeting on November 18, the Assembly voted to postpone action on AO 2025-97​ to their Regular Meeting on December 2.​​
  • October 21, 2025 – Proposal discussed under the Unfinished Business section of the agenda. 
    Assembly Members voted to postpone action to the meeting of November 18. 
  • September 23, 2025 – Public Hearing​
    The public hearing on AO 2025-97 opened and closed at the September 23 Regular Assembly Meeting. Members voted to postpone action on the ordinance to the Regular Assembly Meeting on October 21.
  • August 26, 2025 – Introduced Ordinance
    Assembly Members Constant and Volland introduce AO 2025-97 to submit the 5% short term rental tax to voters as a ballot proposition.


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2% Bed Tax Increase

Sponsored by Assembly Vice Chair and Assembly Budget & Finance Co-Chair Anna Brawley

In October 2025, Assembly Member Brawley introduced AO 2025-117, an ordinance proposing a 2% tax increase on room rentals, including hotels, motels, and short-term rentals, and dedicating the additional revenue to fund public infrastructure, support housing construction, and invest in cultural and recreational facilities. The room tax, AKA “bed tax," is currently set at 12%, so if the increase is approved by voters as proposed, the bed tax would increase to 14% for all room rentals. 


​​Sponsor's Statement - Anna Brawley

This proposal would ask voters whether the Muni should increase the room rental (bed) tax by 2%. The bed tax has not been increased for 20 years, since voters approved a 4% increase for construction of the Dena’ina Convention Center in 2005 (and completed in 2008). The tax is anticipated to raise about $7 million per year, based on current bed tax performance. Adding an additional levy to what is already collected is efficient to implement, and anticipated to have minimal start-up costs. Half of the revenue would be dedicated toward defraying the public infrastructure costs of building housing, and the other half would provide funding for cultural and recreational facilities, attempting to address a backlog of facility maintenance needs for what we already have, for operating or small-scale capital needs. 

Please see the memorandum for a broader analysis of current funding needs, and the limits of what this proposal could address for the Muni’s overall needs.


Read the Ordinance   ​Read the Memo

Legislative History

  • December 16, 2025 – Potential Assembly Action
    AO 2025-117 will appear before the Assembly next at their Regular Meeting on December 16.​
  • November 18, 2025 – Postponed Assembly Action
    During the Regular Assembly Meeting on November 18, the Assembly voted to postpone action on AO 2025-117​ to their Regular Meeting on December 16.​
  • November 14, 2025 – Assembly Worksession​
    Assembly Vice Chair Anna Brawley will present the proposal during a worksession before the ordinance is scheduled to reappear on the Assembly's agenda. Worksessions are informational and open to the public, although they do not include opportunities for public participation. 
  • October 21, 2025 – Public Hearing
    The public hearing on AO 2025-117 was held at the October 21 Regular Assembly Meeting. The Assembly voted to postpone action to the meeting of November 18. 
  • October 7, 2025 – Introduced Ordinance
    Assembly Member Brawley introduces AO 2025-117 to submit the 2% bed tax increase to voters as a ballot proposition. ​


3% Sales Tax

Sponsored by Mayor Suzanne LaFrance​

In November 2025, Mayor Suzanne LaFrance introduced AO 2025-133, an ordinance proposing a 3% sales tax and dedicating the revenue in three parts:1% to property tax relief; 1% to public safety and essential infrastructure; and 1% to child care and housing solutions.

​​Read the Ordinance   ​Learn More​

Legislative History

  • January 13, 2026 – Continued Public Hearing
    The public hearing for AO 2025-133 will continue at the Regular Assembly Meeting on January 13.​

  • December 2, 2025 – Public Hearing
    The public hearing on AO 2025-133 opened at the December 2 Regular Assembly Meeting. The Assembly voted to continue the public hearing to the January 13 Regular Assembly Meeting. ​ 

  • November 18, 2025 – Introduced Ordinance​
    Mayor LaFrance introduces AO 2025-133​ to submit the 3% sales tax to voters as a ballot proposition.​


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