WHAT IS ACT-CAP AND HOW DOES IT WORK?

Because we are NOT politicians, our discussion begins at the bottom line.  Property tax bills are going up with no end in sight.  ACT-CAP, an initiative to slow the rate of borough spending is ready to file.  Mayor Williams and his administration have decided to block this tax limit measure at all cost.  If you would like more information… READ ON!!!

If approved by voters, ACT-CAP would limit the total revenue (taxes) collected by the Kenai Peninsula Borough from all sources.

State law requires real property be assessed at full market value.  Therefore a California-style Prop 13 will not work in Alaska without a state-wide constitutional amendment. ACT-CAP would give property tax relief to the Kenai Peninsula taxpayers with a lot less time, effort and money.

Your property would still be assessed at full market value.  However, once the cap is reached, the borough would not be able to send bigger tax bills just because your assessment went up.

If revenues from sales tax increase, (which they’ve done every year) this could force the borough to reduce property tax levies (the amount you pay).

This is NOT a tax cut proposal.  ACT-CAP will control the RATE at which taxes can increase.  It also allows for voters to approve higher rates should the public decide it is necessary.

ACT-CAP will NOT cut funding to service areas, but it will give voters more control over service area operating budgets.

ACT-CAP will NOT cut funding to schools, but it will force the school district to be more accountable to the public.

ACT-CAP was written by Fairbanks attorney Peter Aschenbrenner.  Mr. Aschenbrenner has many years experience in these type of municipal revenue cap laws and is arguably the best attorney in Alaska for drafting such legislation.  His revenue caps have been in effect in Anchorage and Fairbanks for many years.  A copy of the proposed initiative can be found here: http://www.act-kpb.org/ACT-CAP_10-09-07_initiative_as_filed.pdf  

The KPB rejected this initiative in October 2007, saying it was too complicated and would not work.  Could it be they just don't want anything that limits their power to tax you?  Administrations in Anchorage and Fairbanks, when forced to comply, have made the exact same legislation work for years.

What can we do to get ACT-CAP on the ballot and begin enjoying a more stable tax structure? Litigation and a campaign will be required and they cost a lot of money.  How much money?  Depends on how you look at it.  If for example, every man, woman and child on the peninsula would send $3 to ACT there would be enough.  Unfortunately, a lot of people for one reason or another will not send in their $3, so that puts a larger burden on everyone else.  So decide what stable tax bills would be worth to you, and send that amount to ACT.  For details go to this link: http://www.act-kpb.org/contrib2taxcap.htm

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