Topic

Ballot Propositions for Nov. 2026 Election: What Residents Need to know

Explanations for OR 26-072 (Areawide Sales Tax) ,OR 26-062 (Alcohol Tax Proposal), OR 26-081 (School Board Terms), and OR 26-080 (Areawide Road Powers) Ballot Propositions.

Areawide Sales Tax (1% and $75,000 Residential Property Tax Exemption) OR 26-072

At a Glance

This proposal introduces a $75,000 Owner-Occupied Residential Real Property Exemption and a 1% areawide sales tax. The ordinance, if approved by voters, will result in a $75,000 reduction in taxable value for each owner-occupied residential real property that has been granted after filing an application. This reduction in revenue will be offset with a 1% areawide sales tax which exempts sales within the cities.

Under this proposal, some of the tax burden shifts from owner-occupied residential property ownership to everyday spending. Based on current projections, the 1% areawide sales tax would generate approximately $21 million annually. The $75,000 property tax exemption is estimated to reduce areawide property tax revenue by approximately $12 million to $15 million, depending on participation.

What your vote on OR-080 means

Yes

Authorizes the Borough to levy an Areawide 1% Sales Tax, and a $75,000 Owner-Occupied Residential Real Property Exemption.

Does not grant the Borough to levy an Areawide 1% Sales Tax, and a $75,000 Owner-Occupied Residential Real Property Exemption.

What the proposition would allow

title	Description
What Is It	A sales tax on purchases across the Borough.
What it Changes	Adds a 1% areawide sales tax and a $75,000 reduction in taxable value for owner-occupied residential real property.
Estimated Tax Per Transaction	Only the first $1,000 of the price in each transaction shall be subject to sales tax.
Estimated Impact	Generates about $21 million annually, offsetting an estimated $12M–$15M reduction in property tax revenue
What It Means	Shifts more of the tax burden from property taxes to everyday spending

Potential Benefits & Drawbacks

Benefits

• Property Tax Relief for Homeowners The proposal would exempt the first $75,000 of assessed value on qualifying owner-occupied homes.

• Diversifies Borough Revenue Sources Currently, Borough government relies heavily on property taxes, this distributes the revenue burden across both property ownership and consumer spending.

• Captures Revenue from Visitors and Nonresidents A sales tax would be paid not only by Borough residents but also by visitors and others making purchases in the Borough, potentially helping offset costs associated with Borough infrastructure and services used by nonresidents.

• Includes Certain Exemptions and Tax Limits The ordinance contains numerous exemptions, including many healthcare services, food assistance purchases, long-term residential rentals, certain nonprofit transactions, and government purchases. The tax is also generally limited to the first $1,000 of each transaction, capping the amount paid on larger purchases.

Drawbacks

• Increased Cost of Goods and Services Residents and businesses would pay an additional 1% tax on many purchases, rentals, and services throughout the Borough. Even homeowners receiving a property tax reduction could pay more in sales taxes depending on their spending patterns.

• Greater Impact on Renters and Non-Property Owners Renters who do not qualify for the owner-occupied exemption would still pay the sales tax but may not receive the associated property tax benefit.

• Potential Reduction in Local Spending The Borough's revenue projections assume consumer behavior may change. The analysis cites a McDowell Group assumption that gross sales decrease by approximately 1.5% for every 1 percentage point increase in sales tax, suggesting some shoppers could choose to purchase elsewhere.

• Administrative Costs and Compliance Requirements Implementing the sales tax would require administration, enforcement, audits, reporting, and collections. The Finance Department estimates approximately three full-time employees would be needed at an annual cost of about $360,000. Businesses would also face additional tax reporting requirements.

• Some Existing Exemption Recipients Would Not Receive Additional Benefit If a homeowner has capped out existing exemptions (such as senior, disabled veteran, farm exemptions, etc.) they may not realize any additional property tax savings while still paying the sales tax.

Ballot Question

Shall the Matanuska-Susitna Borough enact a $75,000 owner occupied residential real property exemption, and exercise the power to levy, collect, and enforce an areawide sales tax in the amount of 1% within the entire Matanuska-Susitna Borough?

Alcohol Tax Proposal OR 26-062

At a Glance

This proposal would introduce a new tax on alcoholic beverages, similar in structure to the existing marijuana tax. The rate would be set to 5%. Would result in an estimated revenue increase of $3 million to $7.5 million.

What your vote on OR-062 means

Yes

A yes vote authorizes the Borough to impose a 5% tax on the retail sale of alcoholic beverages throughout the Borough, including within the cities of Palmer, Wasilla, and Houston. Retailers would be responsible for collecting and remitting the tax to the Borough, and the tax would take effect on April 1, 2027.

A no vote rejects the proposed alcohol sales tax. The Borough would not have authority to levy the new 5% alcohol tax, and alcoholic beverage sales would continue to be taxed only under existing state and local taxes already in effect.

What the proposition would allow

Item	Description
What Is It	A new 5% tax on alcoholic beverages
Who It Applies To	Alcohol sales within the Borough
What It Changes	Introduces a new excise style tax
Property Tax Impact	No direct impact on property taxes
Key Exemptions	None specified
How It Would Be Approved	Ballot Proposition

Potential Benefits & Drawbacks

Benefits

• Provides an additional Borough revenue source.

• May help offset pressure on property tax payers.

• Targets discretionary purchases rather than property ownership.

Drawbacks

• Increases the cost of retail alcoholic beverages.

• Establishes a new local sales tax on a specific product.

Ballot Question

Shall the Matanuska-Susitna Borough exercise the power to levy, collect, and enforce areawide tax of five percent (5%) on the retail sale of alcoholic beverages within the Borough?

Limited Areawide Road Powers OR 26-080

At a Glance

The proposition asks whether the Borough should have areawide authority to acquire public rights-of-way and to design and construct roads, streets, sidewalks, and related drainage facilities.

What your vote on OR-080 means

Yes

Authorizes the Borough to exercise these powers areawide after election results are certified.

Does not grant areawide authority; the current Road Service Area funding structure remains.

What the proposition would allow

AREAWIDE AUTHORITY

• Areawide funds are not restricted by Road Service Area (RSA) boundaries and may be used to plan, design and construct roads, streets, sidewalks, and related drainage facilities anywhere in the Borough.

• Areawide funds may be used to acquire rights-of-way needed for road improvement projects as well as to preserve future transportation corridors.

WHAT REMAINS IN PLACE

• RSAs remain responsible for maintaining the transportation network using their funds in their areas.

• RSAs may still choose to fund road improvement projects within their boundary and funds from one service area may not be used outside that service area.

• The new authority takes effect only if approved by a majority of voters.

• The Borough Assembly approves proposed expenditures as part of the annual budget.

Potential Benefits & Drawbacks

Benefits

• Expands the Borough’s ability to use areawide revenues to plan, design, acquire right-of-way, and construct transportation improvements throughout the Borough.
• May reduce reliance on future borrowing by allowing projects to be advanced as funding becomes available.
• Provides an opportunity to secure transportation corridors before adjacent land is developed, potentially reducing future right-of-way acquisition costs.
• Reduce relocation, condemnation, negotiation, redesign, and project-delay risks.
• Improve long-range planning, connectivity, safety, drainage coordination, and preliminary cost estimates.

Drawbacks

• Allows the Borough to spend taxes from the core area for projects in more remote areas and vice versa.
• Places more stress on areawide property taxes if projects are approved.
• The ordinance grants authority but does not identify specific projects, funding amounts, project-prioritization criteria, or timelines for future construction.
• May lead to right-of-way acquisitions that are not fully needed.

Ballot Question

Shall the Matanuska-Susitna Borough adopt and exercise the areawide power to acquire public rights-of-way, design, and construct roads, streets, sidewalks, and related drainage facilities?

School Board Terms OR 26-081

At a Glance

The proposition asks whether School Board terms should change from 3 years to 4 years, with one-time transition terms to align each School Board seat with its matching Assembly District seat.

CURRENT

3-YEAR TERMS

PROPOSED

4-YEAR TERMS MATCHING ASSEMBLY DISTRICT TERMS

What your vote on OR-081 means

Yes

Changes School Board terms to 4 years and applies the transition schedule after election results are certified.

Keeps School Board terms at 3 years; the proposed transition schedule does not take effect.

What the proposition would allow

School Board District	Transition Period	Transition Length	4-Year Term Begins
1	2027–2030	3 years	2030
2	2028–2030	2 years	2030
3	2026–2028	2 years	2028
4	2027–2030	3 years	2030
5	2028–2030	2 years	2030
6	2026–2028	2 years	2028
7	None	None	2028

Ballot Question

Shall the Matanuska-Susitna Borough School Board terms be changed from 3 years to 4 years in length along with transition terms so that School Board seats and matching Assembly District seats have terms that start in the same year?