The Anchorage Assembly will take up a controversial proposal Tuesday evening that would ask voters to approve a retail sales tax in the city.
Assemblyman George Martinez has introduced an ordinance that would place a 1% sales tax measure — cleverly dubbed “Penny for Progress” — on the April 7, 2026, municipal ballot. If passed by a simple majority of voters, the new tax could begin as soon as October 2027. Administering such a tax would be costly to the city but no fiscal analysis has been revealed.
The plan would dedicate tax revenues equally into three vague categories:
- Infrastructure improvements such as roads, sidewalks, utilities, and snow removal systems.
- Workforce housing development and preservation.
- Behavioral and mental health facilities and crisis response programs.
Martinez says that Anchorage’s fiscal model is “structurally imbalanced” and unable to meet long-term capital needs without new revenue. His ordinance frames the 1% tax as a transparent, accountable “city-building strategy,” complete with oversight committees and a five-year review process…