Anchorage, Alaska, Proposition 9, Alcoholic Beverage Sales Tax for Behavioral Health, Homelessness Services, and Prohibited Campsite Removal Charter Amendment (April 2019)
| Proposition 9: Anchorage Alcoholic Beverage Sales Tax for Behavioral Health, Homelessness Services, and Prohibited Campsite Removal Charter Amendment |
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| The basics |
| Election date: |
| April 2, 2019 |
| Status: |
 Defeated
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| Topic: |
| Local sales tax Expires in: No expiration |
| Related articles |
| Local sales tax on the ballot April 2, 2019 ballot measures in Alaska Anchorage Borough, Alaska ballot measures Local alcohol on the ballot |
| See also |
| Anchorage, Alaska |
A sales tax on alcoholic beverages was on the ballot for Anchorage voters in Alaska on April 2, 2019. It was defeated.
| A yes vote was a vote in favor of amending the Anchorage Municipal Charter to establish a local 5 percent retail sales tax on alcoholic beverages, effective January 1, 2020, with revenue dedicated to substance misuse prevention and treatment, behavioral health, homelessness services, and prohibited campsite removal. |
| A no vote was a vote against establishing a local 5 percent retail sales tax on alcoholic beverages, thereby maintaining only the existing alcohol taxes levied by the state. |
Leading up to the election, the state of Alaska did not levy a general sales tax, though local jurisdictions could collect sales taxes of up to 7 percent. Anchorage, Alaska, did not levy a general sales tax at the local level. Anchorage voters approved a local retail sales tax on marijuana and marijuana products at a rate of 5 percent on April 5, 2016.[1][2][3]
In 2019, statewide alcohol taxes in Alaska were levied on wholesalers and distributors primarily, according to the Alaska Department of Revenue. The rates of state taxes on alcohol varied by type of alcohol and volume. A list of the 2019 rates provided by the Department of Revenue can be accessed here. The state also taxed marijuana and tobacco. On January 1, 2019, marijuana sales and transfer tax rates levied on growers were increased, with mature bud taxed at a rate of $50 per ounce. In 2019, state tobacco taxes were levied on wholesalers and distributors at rates of $0.10 per cigarette and 75 percent of the wholesale price of other tobacco products. Additionally, the municipality of Anchorage levied a tax on wholesalers and distributors of $0.1228 per cigarette and 55 percent of the wholesale price of other tobacco products.[4][5][6][7]
Election results
|
Anchorage Proposition 9 |
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|---|---|---|---|---|
| Result | Votes | Percentage | ||
| Yes | 29,644 | 46.24% | ||
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34,461 | 53.76% | ||
-
- Results are officially certified.
- Source
Text of measure
Ballot question
The ballot question and summary were as follows:[8]
| “ |
This proposition would amend the Anchorage Municipal Charter by adding a new section 14.07 to read as follows: Section 14.07 Alcoholic beverages retail sales tax. (a) The assembly is hereby authorized to levy a five percent (5%) tax on all retail sales of alcoholic beverages. The tax levy shall be effective January 1, 2020. (b) The net receipts from the retail sales tax on alcoholic beverages, after payment of the costs of administration, collection and audit to the municipality, are dedicated to alcohol and substance misuse prevention and treatment, community behavioral health programs, public safety, and homelessness prevention and response, including abatement of prohibited campsites. (c) The assembly may direct the use of net receipts from the tax to support securing or repaying obligations by or on behalf of the municipality in order to finance projects for purposes described in subsection (b). (d) The assembly shall enact such additional provisions, not inconsistent with this section, as necessary or desirable to implement this section. The assembly may prescribe exemptions to the tax imposed by this section by ordinance. And by amending Anchorage Municipal Charter, Article II (4), and Charter §14.01(b) as follows (underlined and bolded words are proposed new words; ARTICLE II BILL OF RIGHTS This Charter guarantees rights to the people of Anchorage that are in addition to rights guaranteed by the Constitution of the United States of America and the Constitution of the State of Alaska. Among rights guaranteed by this Charter are: … (4) The right of immunity from sales taxes, except upon approval by three-fifths (3/5) of the qualified voters voting on the question, except the taxes imposed by Charter § Section 14.01 Taxing Authority … (b) Unless otherwise provided in this Charter, no sales tax ordinance is valid until ratified by three-fifths (3/5) of those voting on the question at a regular or special election, except the taxes imposed by Charter § 14.05 and § 14.07 shall be effective if approved by a majority (50%+ one) of the qualified voters voting on the question. If approved by a majority of the voters voting on the question at the April 2, 2019 Regular Election, the amendments to the Charter above shall be effective upon certification of the election. Shall the Anchorage Municipal Charter be amended as set forth above, and the 5% retail sales tax on alcoholic beverages be approved?[9] |
” |
Full text
The full text of the measure is available here.
Support
The Yes for a Safer Anchorage campaign registered in support of Proposition 9. The group reported $17,325.00 in campaign contributions on March 26, 2019.[10]
Supporters
Yes for a Safer Anchorage included the following list of groups that endorsed Proposition 9 on its website:[11]
- Anchorage Chamber of Commerce
- Anchorage Coalition to End Homelessness
- Anchorage Economic Development Corporation
- Anchorage Firefighters Local 1264
- Anchorage Homeless Leadership Council
- Anchorage Police Department Employees Association
- Brown Jug
- Municipal Budget Advisory Commission
- Recover Alaska
- RurAL CAP
- United Way of Anchorage
The tax was proposed in the Anchorage Assembly by the following individuals:[12]
- Mayor Ethan Berkowitz
- Assembly member Dick Traini
- Assembly member Eric Croft
- Assembly member Felix Rivera
Arguments
Yes for a Safer Anchorage made the following statements on its website in support of Proposition 9:[11]
| “ |
The municipality taxes both marijuana and tobacco. This proposed tax is on alcohol because the community has been asking for a solution to the issues of substance abuse, addiction and homelessness for years. This specific tax, with dedicated funds is meant to tax the cost of alcohol misuse and abuse. Businesses and tax payers are already paying for the social woes related to alcohol misuse and abuse through increased police and fire response, Anchorage Safety Patrol, increased security at businesses and home, increase in property crimes, and homeless services. This proposed revenue would ensure there are funds for the community to address these issues and implement new programs to make more rapid impact to improve public safety and health in Anchorage.[9] |
” |
| —Yes for a Safer Anchorage | ||
Opposition
Alaskans Against Unfair Alcohol Taxes led the campaign in opposition to Proposition 9. The group reported $187,414.12 in campaign contributions on March 26, 2019.[10]
Opponents
The Alaska Cabaret, Hotel, Restaurant & Retailers Association (CHARR) opposed Proposition 9.[13]
Arguments
Sarah Oates, president and CEO of Alaska CHARR, and brewery owner David McCarthy made the following statements in opposition to Proposition 9 for the Anchorage Daily News:[14]
| “ |
To be clear, this would be a tax in addition to the existing statewide alcohol taxes that are among the highest alcohol tax rates across the country. The stated reason for this new tax is that the money raised will be used to deal with homeless-related issues in Anchorage. Why should hardworking Anchorage residents who want to enjoy a beer after work have to pay a tax to purportedly fight homelessness, when others wouldn’t have to pay a dime? Mom-and-pop retailers who serve small neighborhood clientele face economic harm or ruin that Brown Jug – the largest retailer in the state – has the ability to weather. Businesses around Anchorage are already shuttering doors and filing for bankruptcy in this economy.[9] |
” |
Path to the ballot
This measure was put on the ballot through a vote of the Anchorage Assembly on December 20, 2018. The proposal for the measure was submitted by Mayor Ethan Berkowitz, assembly member Dick Traini, assembly member Eric Croft, and assembly member Felix Rivera.[12]
See also
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External links
- Search Google News for this topic
- County Elections Office website
- Anchorage Daily News Anchorage Assembly views on Proposition 9
Support |
Opposition |
Footnotes
- ↑ Sales Tax States, "Sales Tax Calculator of Alaska for 2019," accessed March 25, 2019
- ↑ Avalara, "Anchorage, Alaska Sales Tax Rate," accessed March 25, 2019
- ↑ Municipality of Anchorage, "Marijuana Retail Sales Tax," accessed March 25, 2019
- ↑ Alaska Department of Revenue - Tax Division, "Alcoholic Beverages Tax," accessed March 25, 2019
- ↑ Alaska Department of Revenue - Tax Division, "Marijuana Tax," accessed March 25, 2019
- ↑ Alaska Department of Revenue - Tax Division, "Tobacco Tax Frequently Asked Questions," accessed March 25, 2019
- ↑ Municipality of Anchorage, "Cigarette & Other Tobacco Products Excise Tax," accessed March 25, 2019
- ↑ Municipality of Anchorage, "Ballot Propositions," accessed February 21, 2019
- ↑ 9.0 9.1 9.2 Note: This text is quoted verbatim from the original source. Any inconsistencies are attributable to the original source.
- ↑ 10.0 10.1 State of Alaska, "Campaign Disclosure," accessed March 20, 2019
- ↑ 11.0 11.1 Yes for a Safer Anchorage, "Home," accessed March 20, 2019
- ↑ 12.0 12.1 Municipality of Anchorage, "Full Text," accessed March 20, 2019
- ↑ Facebook, "Alaska CHARR," accessed March 20, 2019
- ↑ Anchorage Daily News, "Municipal alcohol tax would be a misguided money grab," December 17, 2018
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