Anchorage, Alaska, Proposition 13, Alcohol Sales Tax Amendment (April 2020)

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Anchorage Proposition 13
LocalBallotMeasures Final.png
Election date
April 7, 2020
Topic
City tax
Status
Approveda Approved
Type
Referral
Origin
Lawmakers


Alaska Proposition 13, an alcohol sales tax charter amendment, was on the ballot in Anchorage, Alaska, on April 7, 2020.[1] It was approved.

A "yes" vote supported levying a 5 percent tax on alcoholic beverage retail sales and dedicating revenue from the tax toward (a) police, first responders, and criminal justice personnel, (b) addressing child abuse, sexual assault, and domestic violence, and (c) programs related to substance misuse treatment and prevention, mental and behavioral health, and homelessness.
A "no" vote opposed levying a 5 percent tax on alcoholic beverage retail sales and dedicating revenue from the tax for specific purposes.


Election results

Anchorage Proposition 13

Result Votes Percentage

Approved Yes

35,562 51.24%
No 33,835 48.76%
Results are officially certified.
Source


Text of measure

Ballot question

The ballot question was as follows:[1]

PROPOSITION NO. 13
CHARTER AMENDMENT
RETAIL SALES TAX ON ALCOHOLIC BEVERAGES OF 5% DEDICATING THE REVENUE TO PUBLIC SAFETY AND HEALTH PURPOSES

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) Tax levy and effective date:

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 February 1, 2021.

(b) Dedication of proceeds:

The net receipts from the alcoholic beverages retail sales tax, after payment of the costs of administration, collection and audit to the municipality, are dedicated and shall be available to use only for:

(1) Funding for police, related criminal justice personnel, and first responders;
(2) Funding to combat and address child abuse, sexual assault, and domestic violence; and
(3) Funding for substance misuse treatment, prevention programs, detoxification or long-term addiction recovery facilities, mental and behavioral health programs, and resources to prevent and address Anchorage's homelessness crisis.

(c) No increase of the alcoholic beverages retail sales tax above five percent (5%) or change of the use of its proceeds may be made without approval of the majority of qualified voters voting on the question.

(d) At least 120 days before the end of the fiscal year of the municipality and at such other times as the assembly directs, the mayor shall submit to the assembly a report of the tax revenues collected and expended. The report of expenses shall be itemized by each authorized use or purpose and presented to the public.

(e) The net receipts described in subsection (b) shall not be used to supplant funding for existing service levels contained in the actual operating budget for fiscal year 2020 and the funding to provide for and maintain that level of service in subsequent years. The dedicated net receipts shall only be used to provide additional service levels above the 2020 baseline.

And by amending Anchorage Municipal Charter, Article II (4), and Charter §14.01(b) as follows (underlined and bolded words are proposed new words; strikeouts in bold are proposed deletions):

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 14.05 and § 14.07 shall be effective if approved by a majority (50 percent + one) of the qualified voters voting on the question.

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 § Section 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 7, 2020 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? (AO 2019-148(S-1), As Amended)[2]

Full text

The full text of the measure is available here.

Background

Anchorage Proposition 9 (2019)

At the election on April 2, 2019, voters rejected Proposition 9, which would have levied a 5 percent tax on alcoholic beverage retail sales. Proposition 9 would have dedicated the tax revenue to substance misuse prevention and treatment, behavioral health, homelessness services, and prohibited campsite removal.

Path to the ballot

See also: Laws governing local ballot measures in Alaska

The Anchorage Municipal Assembly voted 9-2 on January 28, 2020, to place the charter amendment on the ballot. At least eight votes were needed to place the charter amendment on the ballot.[3]

See also

External links

Footnotes