Ballot Proposition B: Raise property tax cap to 12 mills

Citizen-led measure seeks to undo voter-approved change last year that lowered cap to nine mills

Homes on Douglas Island on July 17, 2026. (Mark Sabbatini / Juneau Independent)

By Mark Sabbatini

Juneau Independent

This is about what the mill rate cap can be, not necessarily what it will be.

Last year voters opted to lower the cap to nine mills instead of 12. This year voters are being asked to reverse that decision.

Advocates say this year’s measure will give city leaders more flexibility if more revenue is needed for everyday operations such as street maintenance as well as unexpected ones such as flood mitigation.

Opponents say it exposes homeowners and renters to higher housing costs when affordability is already problematic, and that city leaders haven’t been responsible spending the money they have.

The mill rate is a tax of $1 per $1,000 of property value, so a mill rate of nine equates to $4,500 in tax for a $500,000 home. The tax on the same home would be $6,000 with a rate of 12 mills.

While the question on the ballot is a simple yes/no matter for voters, the details are a bit more complex.

The outcome of the vote on Proposition B will not result in a "hard" cap of either nine or 12 mills. That will be the rate excluding "debt service" payments on bonds and long-term loans. Juneau’s current rate of 9.92 mills for the fiscal year that started July 1 includes the cap of nine mills plus 0.92 mills of debt service.

Last year’s mill rate of 10.24 included 1.08 mills of debt service, meaning the Assembly this year was required to lower the general rate 0.16 mills to meet the new and lower cap.

Juneau’s mill rate was 10.66 mills for eight years until mid-2021, when it was set at 10.56 mills. It was lowered to 10.16 mills in 2023 and 10.04 mills in 2024 before being raised to 10.24 mills in 2025.

The financial impact of the lower cap also isn’t entirely straightforward, since the amount of property taxes the city collects is based on assessed property values as well as the mill rate.

City finance officials originally estimated the lower mill rate would reduce city revenues by $1 million. But assessment values during the past year rose 2.1% for properties citywide and "median residential assessed values increasing by less than 1%," according to a budget summary at the city’s website.

"While small, this increase largely offset the impact of the mill rate cap and resulted in relatively flat property tax revenue compared to the prior year," the summary notes.

A ballot proposition FAQ at the city’s website notes the higher mill cap would take effect 30 days after enactment, but practically speaking the mill rate wouldn’t change until after the Assembly approves its budget next June.

• Contact Mark Sabbatini at editor@juneauindependent.com or (907) 957-2306.