Sen. Jesse Bjorkman, R-Nikiski, speaks during a March 19, 2024, news conference. Next to him is Sen. Bert Stedman, R-Sitka, a co-chair of the Senate Finance Committee. (Photo by Yereth Rosen/Alaska Beacon)
The Alaska Senate has voted to ban cities and boroughs from taxing real estate transactions.
Senators voted 16-3 on Wednesday to approve Senate Bill 179 , sending it to the House for further consideration.
None of Alaska’s local governments currently tax the sale of real property, such as a commercial building or a home, but bill sponsor Sen. Jesse Bjorkman, R-Nikiski, said that real estate agents are concerned by the prospect and asked for action.
“This bill was brought to me by realtors and other folks who are concerned about the rising price of homes,” he said.
Speaking to his fellow senators, Bjorkman suggested that if a local government were to impose a tax on real property, it could increase housing prices.
Sen. Jesse Kiehl, D-Juneau, said the bill represents an unusual step by the Legislature, which has traditionally declined to limit local governments’ power.