The Anchorage Municipality held a worksession on May 10, 2025, to discuss the proposed amendments to the Anchorage Municipal Code 12.10, specifically focusing on the implications of the business property tax and inventory tax on local businesses.

The meeting began with a presentation featuring a sample tax bill provided by the assessor's office. The presenter highlighted the complexity of the tax filing process, particularly for small and fledgling businesses, which often struggle with the intricate requirements. The discussion emphasized the disparities between service-based businesses and product-based businesses, such as retailers and manufacturers, particularly due to the inventory tax component.

Concerns were raised regarding the current economic climate, with small businesses facing increased costs from tariffs and a recent rise in the Alaska minimum wage. The presenter acknowledged the necessity of the minimum wage increase but noted the financial strain it places on small businesses.

The meeting also addressed existing tax relief measures, including a senior exemption and a residential exemption for homeowners, which had recently been increased to $75,000. The presenter provided a detailed breakdown of how business property taxes are assessed, noting that businesses are taxed on personal property, such as furniture and equipment, as well as inventory.

A key point of discussion was the inequity of the inventory tax, which disproportionately affects retail and manufacturing businesses that rely on maintaining stock to meet customer demand. The presenter argued that this tax penalizes businesses for holding inventory, discouraging them from stocking up during uncertain times, which can lead to higher costs and reduced product availability for consumers.

The meeting concluded with a call for further examination of the tax structure to ensure fairness and support for local businesses, particularly those that are already facing significant challenges. The discussions underscored the need for a balanced approach to taxation that considers the diverse needs of Anchorage's business community.