Anchorage Mayor Suzanne LaFrance proposes 3 percent sales tax to fund services

Anchorage Mayor Suzanne LaFrance is proposing a new 3 percent sales tax to help address the city’s budget challenges.

The mayor says the proposal comes as state funding for the city has declined. If approved, the tax would help fund property tax relief, public safety, infrastructure, as well as housing and childcare programs.

Under the plan, about one-third of the revenue would go directly toward reducing property taxes, with the remainder supporting city services and investments. Mayor LaFrance says the measure is intended to help cover the city’s growing financial gap.

The proposal is expected to be discussed by city officials in the coming weeks, and public input will likely play a role before any decision is made.