HERO Realty Group | Mat-Su Homeowner Brief

By Ryan Lunski | November 2026

If you own a home in the Mat-Su Valley, or you're thinking about buying one, there's a question on the Tuesday, November 3, 2026 regular Borough election ballot that could change what you pay each year: Proposition C.

What does a YES or NO vote on Prop C mean for you? I'm Ryan Lunski with HERO Realty Group, and I'm not here to tell you how to vote. In the video below I break down what each answer would do, and I walk through a sample household's numbers so you can make an informed decision at the polls.

Watch: Prop C in Under 3 Minutes

Ryan explains what a YES or NO vote means for Mat-Su homeowners.

1%Proposed areawide sales tax on qualifying purchases
$75,000Assessed value exempted on qualifying owner-occupied homes
$10Most tax on a single transaction (first $1,000 only)
Nov 3Regular Borough election day, 2026

1. What a YES Vote Means

Prop C is one question with two parts, and you can't get one without the other. A YES vote would:

  • Add a 1% areawide sales tax on qualifying sales, services and rentals across the whole Borough, including inside Wasilla, Palmer and Houston.
  • Exempt the first $75,000 of assessed value from property tax on qualifying owner-occupied homes. Homeowners would need to apply, and it can't be combined with senior, disabled or farm exemptions.

A NO vote authorizes neither. Property taxes stay as they are, and there is no new areawide sales tax.

If it passes, the Borough says the sales tax would start April 1, 2027, and the lower property tax bills would follow with the August 2027 payments.

2. A Sample $400,000 Home

Here's the example I use in the video. Based on the Borough's 2026 mill rate, I estimate the exemption would save the owner of a $400,000 home about $600 a year, or about $50 a month. The Borough's own estimate for a $400,000 home is higher, at about $750 a year. Your actual savings depend on your home's assessed value and the mill rate where you live.

Now the other side. If your family spends about $3,000 a month on purchases that would be hit by the full 1%, that's about $360 a year in new sales tax. With my $600 estimate, that household comes out about $240 a year ahead.

Sample household: $400K home, $3,000/month in qualifying purchases

Ryan's estimates, per year

~$600Property tax saved
~$360New sales tax paid

Net: about $240 a year ahead. Using the Borough's $750 savings estimate instead, the same household would come out about $390 ahead.

3. Where's the Break-Even Point?

With a $600 savings, you'd have to spend about $5,000 a month on qualifying purchases before the sales tax cancels out the property tax break. With the Borough's $750 figure, the break-even is closer to $6,250 a month.

Two details matter here. Many purchases are exempt, including many healthcare services, food assistance purchases and long-term residential rentals. And the tax generally applies only to the first $1,000 of each transaction, so the most you'd pay on a single purchase is $10. Big-ticket items don't move the needle much.

My takeaway: Whether Prop C helps or costs you depends on two numbers: your home's assessed value and how much you spend on taxable purchases. Renters and people who don't qualify for the exemption would pay the sales tax without getting the property tax break.

4. The Borough's Side of the Ledger

The Borough projects the 1% sales tax would bring in about $21 million a year, while the exemption would reduce property tax revenue by about $12 million to $15 million, depending on how many homeowners apply. Those are estimates, but the spread works out to roughly $6 million to $9 million a year more for the Borough.

5. What It Means if You're Buying or Selling

If you're buying: Property tax is part of your monthly payment. A lower tax bill on an owner-occupied home could shift your numbers a little, and every dollar counts when you're qualifying for a loan. Rates also dipped slightly recently, so it's worth asking your lender to rerun your numbers.

If you're selling: Buyers look at the total monthly cost of owning a home, not just the price. Knowing how Prop C could change the annual tax on your home helps you answer their questions.

Every dollar counts. Whatever you decide, make your voice heard. Polls are open Tuesday, November 3. Find your polling place and the full ordinance at matsu.gov/elections.

Want to Know What Your Home Could Sell For?

I'm Ryan Lunski with HERO Realty Group. If you're thinking about buying or selling in the Mat-Su, let's look at the real numbers for your home, including taxes, payments and value.

Get Your Free Home Value

Or call or text HERO Realty Group at 907-360-7448, or send us a message.

Note: This post is for general information only. It is not tax, legal or voting advice, and HERO Realty Group takes no position on Proposition C. The $600 savings, $360 sales tax, $240 net and $5,000 break-even figures are Ryan's estimates for a sample household. The $750 savings estimate, the $21 million and $12–15 million revenue projections, the $1,000 per-transaction limit and the effective dates come from the Matanuska-Susitna Borough (Ordinance Serial No. 26-072 and matsu.gov/ballot-propositions). Your results will vary. Check the ordinance for eligibility and exemption details.