What you need to know:
- The Mat-Su Assembly will consider a new 7-cent-per-gallon tax on gasoline and diesel. The proposal is intended to generate revenue for road maintenance and construction and reduce reliance on property taxes. A public hearing is scheduled for July 15.
- The tax would not apply to aviation fuel, marine fuel or home heating fuel. It would apply to fuel sold at gas stations across the borough, including in the cities of Houston, Wasilla and Palmer. The measure does not require voter approval.
- If approved, the tax could generate $5 million annually. The average driver would pay about $28.81 more per year. Raising that same amount of income through property taxes would cost the average borough taxpayer an additional $130 per year. Unlike property taxes, a fuel tax affects both residents and visitors.
PALMER – The Mat-Su Assembly will consider whether to add a new 7-cent-per-gallon tax on all gasoline and diesel sold at pumps throughout the borough, according to a measure introduced this week.
The proposed tax is intended to reduce the borough’s reliance on property taxes while providing a new source of funding for road construction and maintenance, borough officials said.
Mat-Su does not currently tax fuel or impose a sales tax on most consumer goods…