Tax thyself … one way or the other
The newspaper headline – “Coming this spring: Tax cuts for Anchorage homeowners, but tax hikes for business owners” – was a little misleading. It should have said, “Coming this spring: Shrimpy tax cuts for residential homeowners, increased prices for just about everything else.”
When voters approved Proposition 11 in the recent election, a residential property tax exemption, they may have saved a few bucks – about $270 on an average $350,000 home, the Anchorage Daily News reports – but they increased property taxes on commercial buildings and apartments.
Businesses and landlords generally pay no property taxes. They simply pass them on to customers and tenants in the form of higher prices and rents. While Mayor Ethan Berkowitz peddled the exemption idea as a way to reduce the load on the city’s property taxpayers, it actually amounts to a simple shift-and-shaft proposition.
The property tax is expected to climb on average by about $190 on a $350,000 commercial building, the paper reported. It did not say how much it would be for a larger building worth perhaps millions.
Whatever that amount is, expect that you will help pay for it – along with the 10 cent-per-gallon fuel tax increase the Assembly recently approved at Berkowitz’s behest, also to relieve the pressure on property taxpayers.
This administration appears determined to “help” us into the poor house.