Anchorage Assemblyman Dick Traini introduced an alcohol tax measure at Tuesday night's meeting, aiming to raise money to deal with alcohol-related problems in the city.
Traini's measure, which would appear on the ballot in the city election in April, would amend the municipal charter to create a tax on all retail sales of alcohol. The percentage of the tax has not yet been set, Traini said.
The tax would "dedicate the revenue to health and public safety uses related to alcohol beverages" and "allow use of the revenue to finance bonds for projects related to alcohol treatment," according to Traini's ordinance.
Traini submitted the proposal Tuesday night. It wasn't publicly available until just before the Assembly meeting.
The Midtown Assembly member linked alcohol to public safety problems in Anchorage and said the measure would dedicate funds specifically for treatment and facilities. He said the problems stemming from alcohol use extend citywide.
"It's is the drug of choice in Anchorage," Traini said.
The city treasury department estimated that an 8 percent tax would generate $14 million in revenue, according to Traini -- money that could, for example, help pay for a detox center, he said.
City Attorney Dennis Wheeler, whose department prepared the document, said the amount of the sales tax will be left up to the Assembly. To help members make that decision, the proposal will be reviewed in the next two weeks by three Assembly committees, Traini said: the Budget and Finance Committee, the Public Safety Committee and the Ad-Hoc Committee on Alcohol and Substance Abuse, which was created to find ways to curb substance abuse in Anchorage.
Assembly member Bill Evans, chair of the committee on substance abuse, said his initial reaction to the proposal was mixed.
"I'm a bit skeptical about taxing nonproblem drinkers to pay for problem drinkers, when there's already a state tax on alcohol," Evans said. "But I recognize that the solutions that we're going to need to curb the chronic inebriation problem in Anchorage are going to take resources. So we have to be willing to look at all possibilities."
Voters in the Matanuska-Susitna Borough rejected a 5 percent alcohol tax in the fall of 2013. The measure generated a $100,000 get-out-the-vote campaign. Supporters included the Mat-Su Health Foundation, while groups like the Alaska Cabaret, Hotel, Restaurant & Retailers Association opposed the measure.
Traini said he was confident the Anchorage measure would succeed because the ordinance specifically dedicates the revenue stream to addressing health and public safety problems associated with alcohol.
"The problem is, right now the state of Alaska is running broke and we can't anticipate revenue coming in from the state to help us out," Traini said.
Two public hearings on the proposal have been set for Jan. 27 and Feb. 3. Traini said he expects to know the proposed tax percentage before the first meeting.
If the tax is ultimately placed on the ballot, it will require the approval of 50 percent plus one of Anchorage voters, according to the language of Traini's measure.