Citizen petitions seek 1% seasonal sales tax, restoring property tax cap to 12 mills
- Mark Sabbatini
- 4 hours ago
- 3 min read
Two proposals filed with city clerk’s office this week seek to recover some of the revenue lost under tax-cut measures passed by voters last year
By Mark Sabbatini
Juneau Independent
Restoring Juneau’s property tax cap to 12 mills and imposing an additional 1% seasonal sales tax between May 1 and Sept. 30 are proposed in citizen petitions filed this week with the city clerk’s office.
Both proposals come after voters in last year’s municipal election lowered the mill rate cap to 9 mills (instead of 12), exempted food and utilities from the city’s 5% sales tax, and rejected seasonal sales tax rates of 3% from October-March and 7.5% from April-September. That outcome is expected to cost the city roughly $12 million in revenue during the coming fiscal year, prompting proposed budget cuts that are getting widespread pushback from residents.
The 1% seasonal sales tax proposal submitted to the clerk’s office Monday was "spearheaded pretty quickly" among the recent discussions of possible cuts, Michael Cole, one of the five petitioners, said in an interview Wednesday. He said he works at Eaglecrest Ski Area, which is facing cutbacks that could make opening next year implausible, but he said other reductions that might have broader impacts on the community’s quality of life are of greater concern.
"My major one is I'm a parent, and I have kids in skiing, swimming and soccer," he said. "And they do other activities and stuff, and if we start losing our recreational facilities the economic impact is going to be worse."
A city report states cruise passengers accounted for $17.7 million in sales tax revenues in 2023. An extra 1% to that amount would be about $3.5 million — but doesn’t factor in the petition not collecting the seasonal tax from passengers in April and October, plus the exemptions on "essential" food (largely meaning non-prepared food such as everyday grocery items).
The petition reinstating the 12 mill property tax cap, submitted to the clerk’s office Tuesday, seeks to undo what city officials expect will be about $1 million in lost annual revenue.
“It’s become clear that we’ve cut too much, too fast and there are now services we love and use that are on the chopping block,” said Pat Race, one of the five petitioners, in a prepared statement. “I think this will be a referendum on quality-of-life services that many residents don’t want to lose.”
The passage of last year’s measure lowers property taxes by 0.16 mills in next year’s proposed budget, which has a total proposed rate of 9.92 mills. The cap does not include debt service, which accounts for the amount over the limit approved by voters.
The tax measures last year were advocated by a group of people who formed the Affordable Juneau Coalition, stating their goal was to reduce high costs that were making it hard for people to live and work in Alaska’s capital.
Some supporters of the measures also criticized the city’s spending decisions, including a projected $18 million move of City Hall offices to the Michael J. Burns Building and potentially tens of millions for a gondola at Eaglecrest — with the latter plan now in the process of being scrapped due to higher-than-expected costs.
Both petitions are undergoing legal review, according to the city clerk’s office. If approved the petitioners will need to collect at least 2,566 signatures — one-fourth of those cast in the most recent regular municipal election — to qualify for the ballot.
• Contact Mark Sabbatini at editor@juneauindependent.com or (907) 957-2306.
