By SUZANNE DOWNING
Sept. 9, 2026 – Matanuska-Susitna Borough voters will decide four ballot propositions this fall, including proposals to impose new taxes on alcohol and general retail sales, provide a property tax exemption for qualifying homeowners, extend School Board terms and expand the borough’s authority over road construction.
The four propositions will appear on the borough’s Nov. 3 regular-election ballot. Each requires approval from a majority of voters.
Proposition A asks voters whether School Board terms should increase from three years to four years. The change would put School Board members on the same four-year cycle as members of the Borough Assembly and align each School Board seat with its corresponding Assembly district.
The proposition includes temporary two- and three-year terms during the transition. School Board districts 3 and 6, which are up for election this year, would initially receive two-year terms before beginning regular four-year terms in 2028.
Districts 1 and 4 would have three-year transition terms beginning in 2027, while districts 2 and 5 would have two-year transition terms beginning in 2028. District 7 would not require a transition term.
A “yes” vote would approve the four-year terms and transition schedule. A “no” vote would leave School Board terms at three years.
Proposition B would authorize a new 5% borough tax on the retail sale of alcoholic beverages. Unlike the general sales tax proposed in Proposition C, the alcohol tax would apply throughout the borough, including inside Palmer, Wasilla and Houston.
Borough officials estimate the alcohol tax could generate between $3 million and $7.5 million annually. Retailers would collect the tax and remit it to the borough. If approved, it would take effect April 1, 2027.
The tax would resemble the borough’s existing marijuana tax by singling out one category of retail products for an additional levy. Supporters may view it as a way to raise revenue from discretionary purchases and reduce pressure on property owners. Opponents may argue that it would increase consumer costs and establish another layer of local taxation.
A “yes” vote authorizes the borough to levy the 5% alcohol tax. A “no” vote rejects it.
Proposition C is the most financially significant and complicated of the four measures. It combines a new 1% areawide sales tax with a $75,000 property tax exemption for qualifying owner-occupied homes.
The borough estimates that the sales tax would raise approximately $21 million per year. The residential exemption is projected to reduce areawide property tax collections by between $12 million and $15 million, depending on how many eligible homeowners apply.
Although described as an areawide tax, the ordinance exempts sales made within the cities of Palmer, Wasilla and Houston, where municipal sales taxes are already collected. The borough tax would generally apply to purchases, rentals and services in areas outside those cities.
Only the first $1,000 of a transaction would be taxed, limiting the borough tax to no more than $10 on a single transaction. The ordinance also contains exemptions for several categories, including many healthcare services, purchases made with food-assistance benefits, long-term residential rentals, government purchases and certain nonprofit transactions.
The proposal is intended to shift part of the borough’s revenue burden from residential property owners to consumer spending. Visitors and people who live outside the borough would also contribute when making taxable purchases in the affected areas.
But the benefits would not be distributed equally. Renters and other non-property owners would pay the sales tax without directly receiving the homeowner exemption. Some senior citizens, disabled veterans, farmers and others who already receive property tax exemptions may not receive an additional reduction because the proposed $75,000 exemption generally could not be combined with another exemption.
The borough estimates that administering the tax would require approximately three additional full-time employees at an annual cost of about $360,000. Businesses outside the cities would also take on new collection, reporting and compliance responsibilities.
A “yes” vote approves both the 1% sales tax and the $75,000 owner-occupied residential property exemption. The two provisions are packaged together and cannot be voted on separately. A “no” vote rejects both.
Proposition D asks voters to give the borough limited areawide authority to acquire public rights-of-way and to design and construct roads, streets, sidewalks and related drainage facilities.
Road construction and maintenance are currently handled largely through individual Road Service Areas, whose money generally must remain within their boundaries. If Proposition D passes, the borough could use areawide revenue for certain transportation projects anywhere within the borough, regardless of Road Service Area boundaries.
The measure would allow the borough to purchase or otherwise secure rights-of-way for planned road improvements and future transportation corridors. It could also use areawide money to design and construct projects.
Road Service Areas would remain in place and would continue maintaining roads within their boundaries. The proposition does not approve a particular road project, dedicate a specific amount of money or establish a project schedule. Future spending would still have to be approved by the Borough Assembly through the budget process.
Supporters may argue that the authority would allow the borough to preserve transportation corridors before development makes them more expensive and difficult to acquire. It could also improve long-range transportation planning and allow projects crossing service-area boundaries to be considered on a boroughwide basis.
Opponents may object that areawide taxes collected in one part of the borough could be spent on roads in another. The measure could also put additional pressure on boroughwide property taxes if the Assembly approves new projects without identifying other funding.
A “yes” vote grants the borough the expanded areawide road and right-of-way authority. A “no” vote keeps the present Road Service Area structure without adding that authority.
Early and absentee voting begins Oct. 19. The deadline to apply for an absentee ballot is Oct. 27, and Election Day is Nov. 3. Residents must be registered by Oct. 4 to vote in the borough election. The Mat-Su Borough is the only borough in the state that aligns its local elections with the statewide general election.
More information, including the ordinances and official ballot language, is available through the Matanuska-Susitna Borough elections office and its 2026 ballot propositions guide.
