Mat-Su voters will decide a tax question on November 3, 2026. The ballot would pair a new 1% Borough sales tax with a $75,000 property-tax exemption for some owner-occupied homes. The Assembly placed the measure on the ballot, but neither tax change is in effect. If voters approve it, qualifying homeowners would pay tax on less home value. Shoppers would pay one cent per taxable dollar, up to $10 on most single transactions. Renters would not receive the home exemption. Yet residential leases of at least 30 days would be exempt from the sales tax.
Where the measure stands
The signed final ordinance shows that the Assembly defeated the measure on June 16, then reconsidered and adopted it on July 21. A motion to undo that action failed 3–4 on August 4. That sequence left the question on the November ballot.
The public Legistar index gives a shorter and less clear action summary. It lists an adopted amendment on June 16. It lists reconsideration on July 21 and a rescind notice on August 4. The signed ordinance and final August 4 minutes supply the fuller record used here.
Who could get the home exemption
The exemption would remove the first $75,000 of assessed value from property-tax calculations for an eligible primary home. It would not cut the value shown for other uses. It also would not give every owner the same dollar savings. The tax change would depend on the mill rate applied to that property.
- The owner must apply and must have lived in the Borough for the full prior year.
- The home must have been owned and used as the applicant’s main home before January 1 of the exemption year.
- The application deadline would be April 30. The code does not allow proration.
- One person could not claim the exemption on more than one property, and this exemption could not be combined with another property-tax exemption.
The benefit is limited to an owner’s main home. Renters and owners who do not meet the rules would not receive it. An owner-occupied unit in a multifamily development could qualify if the owner meets the same rules.
How the sales tax would work
The sales tax would apply across the entire Borough, including areas inside cities. Sellers would collect it on taxable sales, rentals, and services. The code generally taxes only the first $1,000 of a single transaction. The Borough share would usually top out at $10 for that transaction. Some monthly services and rentals count as separate transactions. Each night of short-term lodging also counts on its own.
The ordinance has many exemptions. They include residential rentals lasting 30 or more days. Licensed human health care and daycare are also exempt. So are some government sales and purchases made with SNAP or WIC benefits. The list does not create a broad exemption for every grocery purchase.
What the Borough estimates
Borough Finance projects about $21.48 million a year from the 1% sales tax. That is an estimate, not a promise. It assumes city sales fall by 1.5% for each added tax point. It uses $3,600 in yearly online sales per person outside cities. It also puts direct sales outside cities at half of Wasilla’s sales.
The assessor counted 26,611 properties that might qualify after removing homes already using senior or disabled-veteran exemptions. Finance estimated the new exemption would reduce property-tax revenue by about $7.94 million if half apply, $11.91 million if three-fourths apply, or $15.88 million if all apply. It also estimated three full-time staff at about $360,000 a year to run the sales tax.
Those figures show the main tradeoff. Residents and visitors would pay the sales tax on taxable purchases. The property exemption would direct tax relief only to eligible owner-occupied homes. Actual revenue and the number of approved exemptions could differ from the forecast.
What happens next
If a majority votes yes, the home exemption would take effect on December 31, 2026, for the 2027 tax year, and the sales tax would start April 1, 2027. If the measure fails, neither part would take effect. Later rules or court action could change how the system works. New fiscal estimates could also change the forecast.