As Anchorage navigates our governance it is increasingly evident that the lack of transparency in fiscal matters has eroded the public trust. This was evidenced by the discussions resulting in the recent efforts to implement an Anchorage sales tax.
An effort needs to be made by Mayor Suzanne LaFrance and Assembly Chair Christopher Constant to bolster the public trust by including the annual Tax Cap Calculation and an annual review of all real properties exempted from taxation into the independently audited Anchorage Comprehensive Annual Financial Report – (CAFR).
The Tax Cap Calculation, expressed as a mathematical formula, is a crucial component of Anchorage’s fiscal framework. The formula is designed to protect property owners from significant tax increases while ensuring that the Municipality can generate sufficient revenue to meet its obligations. The formula starts with the previous year’s tax receipts and then is adjusted for several variables. Bonds approved by voters, new construction, the Consumer Price Index, lawsuit settlements and changes in population are the factors determining the new taxation amount…