Ballot Proposition C: Implement 1% seasonal sales tax

The Norwegian Encore's lights shine on the water as it berths in downtown Juneau on Oct. 14, 2025. (Jasz Garrett / Juneau Independent)

By Mark Sabbatini

Juneau Independent

Voters cut sales taxes last year and, after city leaders responded with budget cuts, residents are being asked this year to increase sales taxes.

Proposition C, if passed, will implement a 1% sales tax between April 1 and Sept. 30, in addition to Juneau’s year-round tax rate, which is currently 5%. The seasonal tax would generate about $6.8 million a year, about half from residents and half from tourists, according to city officials.

A citizens’ petition placed the measure on the ballot, with supporters stating "the intent of this additional seasonal sales tax revenue will help fund indoor and outdoor recreation in Juneau." However, city officials are not legally obligated to spend the money in that fashion, according to a ballot measure FAQ at the city’s website.

"The Assembly has the responsibility of allocating the revenue to various services or capital projects each year," the FAQ states. "The whereas clauses proposed by the ballot language intend that revenue from this tax is to help fund both indoor and outdoor recreation within the City and Borough of Juneau."

Supporters of the seasonal sales tax say it is needed in the wake of budget cuts made this spring to facilities such as the Juneau-Douglas City Museum and Eaglecrest Ski Area, especially since the city still has a budget gap and further cuts to programs and services might be needed in future years.

Opponents say it would put more of a burden on people making large purchases during warmer months, such as boats or home improvement projects. They also assert the city has made poor spending choices with existing funds and that the full impacts of the sales tax cuts passed last year should be better known before imposing new taxes.

Several other communities in Alaska have seasonal sales taxes in various forms. Juneau voters last year rejected a ballot measure imposing a total sales tax of 3% from October to March, and 7.5% from April to September, with 2,514 in favor and 3,534 opposed. Supporters of this year’s measure say they hope voters will be more favorable toward a proposal with far less drastic seasonal swings.

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