Report: Effects on Households of a Proposed Anchorage Municipal Sales Tax

In November 2025, Mayor Suzanne LaFrance briefly introduced a 3% sales tax proposal to the Anchorage Assembly.  ISER researchers examined the implications and outcomes of the proposal, identifying several key conclusions:

• The proposed sales tax would produce almost $173 million in revenue per year.
• Visitors would contribute about 18% of the total revenues.
• The municipality’s lowest-income residents would pay 1.7% of their income in sales taxes while the highest-income residents would pay only 0.5% of income.
• Households with children would pay somewhat less sales taxes per person than households without children

While the 2025 proposal is not currently active, the discussion around sales taxes continues. Read the full report from ISER to understand the ongoing conversation