Mat-Su Assembly to Consider Sales Tax Ballot Measure

Proposed 6.5% borough-wide sales tax would replace most property taxes in the region

Published on Feb. 23, 2026

Got story updates? Submit your updates here. ›

The Matanuska-Susitna Borough Assembly in Alaska is expected to introduce a ballot measure next month that would ask voters to approve a 6.5% borough-wide sales tax. If approved, the new sales tax would replace most of the region's property taxes, though some property taxes would remain in place. The goal is to shift the tax burden from property owners to anyone making purchases in the Mat-Su region.

Why it matters

This proposal aims to provide tax relief for Mat-Su property owners by shifting the burden to a broader tax base that includes anyone making purchases in the region, including visitors. However, there are concerns that a high sales tax could negatively impact retail sales and economic activity in the area.

The details

The proposed 6.5% sales tax would apply to most purchases in the Mat-Su region, with some exemptions like pharmaceuticals and animal feed. It would replace the current 8.485 mill areawide property tax, though other property taxes for services like roads and fire departments would remain. The sales tax is expected to need to generate between $130-$150 million to cover the costs currently paid by property taxes and other sales taxes. Assembly members are debating the appropriate rate, as a rate that is too low could lead to budget shortfalls, while a rate that is too high could hurt retail sales.

  • The Assembly must vote on the measure by August to meet the annual ballot proposition deadline.
  • If approved, the sales tax measure would go before Mat-Su voters in November 2026.

The players

Michael Bowles

Assembly member representing District 1, which includes Butte, Sutton and portions of Palmer.

Edna DeVries

Mat-Su Borough Mayor.

Mike Brown

Mat-Su Borough Manager.

Got photos? Submit your photos here. ›

What they’re saying

“If we put this on the ballot, then everybody in the borough gets to take a chop at this and decide for themselves how they want to be taxed.”

— Michael Bowles, Assembly member (Mat-Su Sentinel)

“What if those two figures don't match, and the 6 1/2 should have been 8%? What kind of services are you going to cut? You can cut down on how many fire trucks there are? Or ambulances? Or Assembly salaries?”

— Edna DeVries, Mat-Su Borough Mayor (Mat-Su Sentinel)

What’s next

The Assembly must vote on whether to put the sales tax measure on the November 2026 ballot by August 2026.

The takeaway

This proposed sales tax shift aims to provide tax relief for Mat-Su property owners, but there are concerns about setting the right rate to avoid budget shortfalls or negatively impacting the local economy through a high sales tax.