Juneau Assembly finalizes tax measures for October ballot
- Jasz Garrett
- Jul 29
- 4 min read
Seasonal sales tax on ballot, school bonds indefinitely postponed
A seasonal sales tax will appear on the fall election ballot after being approved by the Juneau Assembly on Monday. But the Assembly rejected two bond measures to fund nearly $20 million in school and utility projects.
Both bond measures were described as high-priority needs by local officials who spent months drafting project lists. However, concern was expressed about residents facing too many ballot items that affect their finances, especially after recent increases in property and utility taxes.
The Assembly’s actions largely complete the process of determining what will be on the Oct. 7 municipal election ballot. Four candidates are seeking three seats in both the Assembly and school board races this fall, and residents will vote on measures to lower the maximum property tax rate and exempt food and utilities from sales taxes.
One rejected bond proposition provided up to $10.735 million for Juneau School District capital improvements. Projects included reroofing and boiler room renovation and upgrades at several schools, as well as districtwide security and safety upgrades.
Assembly Member Christine Woll asked to postpone the two general obligation bond propositions to the 2026 ballot.
“My motivation really is about not crowding the ballot,” Woll said in an interview after the meeting. “The utilities and school board are really good proposals, I think, but they can wait.”
Juneau Board of Education President Deedie Sorenson told the Juneau Independent on Tuesday that the school improvement projects cannot wait until they become emergencies.
“We’ll have major failures,” she said. “I mean, the boiler room at JD (Juneau-Douglas High School: Yadaa.at Kalé) is at a critical point. We have other boilers in buildings that are on their very last legs, and when they go out, then buildings are cold.”
Sorenson said the bond idea originated after city officials discussed the need to build a playground at Dzantik’i Heeni.
“I understand that the community is feeling pretty negatively about the strain on their wallets,” she said. “I fully understand that, but I also feel like there’s needs and wants, and the school maintenance is a need.”
At the meeting, Woll made a motion to move the Dzantik’i Heeni playground project forward, which passed unanimously. The Finance Committee will oversee the playground site preparation.
The Assembly also unanimously postponed an $8 million bond proposition for water and wastewater utility infrastructure improvements to 2026.
No members of the public signed up to testify on the utility or school board bond measures.
Getting far more public notice was the Assembly’s proposed ballot measure to replace Juneau’s 5% sales tax with a seasonal sales tax of 7.5% between April 1 and Sept. 30, and 3.5% between Oct. 1 and March 31. The seasonal rates include a temporary tax of 1% voters have renewed for decades, while a permanent 1% sales tax and temporary 3% tax also renewed many times would be repealed.
An amendment by Deputy Mayor Greg Smith reduces the winter rate, paid mostly by residents, from 3.5% to 3%. It would still generate more annual revenue than the current year-round sales tax, according to city financial documents.
The Assembly unanimously approved placing the proposition on the ballot. It is estimated to replace any revenue reduced due to an exemption of essential food and residential utilities, according to
Before the proposal was amended, residents asked the Assembly to consider postponing or removing the implementation of a seasonal sales tax.
“As a lifelong resident, it doesn’t make me feel good about my hometown when we’re sticking it to the visitors,” Bob Jacobsen, a downtown resident, said. “It looks like we’re being too greedy and exporting our taxes on people who don’t live here.”
He said his family has started and operated numerous businesses in Juneau over the past 72 years, and he hopes future generations of his family continue to pay property and sales taxes. But Juneau is becoming less affordable for young workers and entrepreneurs, Jacobsen said.
Affordable Juneau Coalition member Angela Rodell opposed the seasonal sales tax, calling it ill-timed and unaffordable for many community members who are already struggling with the rising cost of living, housing, food, childcare, and utilities.
“While the proposal is framed as seasonal increase with a decrease included for six months over the fall and winter, the effect of this ordinance is a permanent rise in the overall sales tax,” Rodell said. “The new annual sales tax rate will be 5.5%, not our current 5% and it will be permanent. That means anyone who buys school supplies in August, flood mitigation needs in July, or household necessities in June, will be paying a higher rate, 7.5% just for living their everyday lives.”
Smith, when proposing the lower winter tax rate, said it makes the average annual rate 5.25% instead of 5.5%.
Rodell said the proposal is not a targeted tax on tourists, but it would affect everyone who shops locally from April through September.
“People are exhausted by trying to figure out how to get more money in their pockets and how to pay for things, and that Juneau just feels like every day it gets a little bit more expensive,” she said.
Assembly Member Wade Bryson said he previously opposed the concept of a seasonal sales tax because he is a summer business owner. But in the last few months, he said he realized many cities in Southeast Alaska are already “taking advantage of the additional traffic during the summer to the benefit of the community.”
Smith acknowledged tension from residents not working in tourism who feel they do not benefit from the industry. He said a seasonal sales tax aims to help them.
“If I don’t work in it, or if I don’t have my children working in it, and I get all these impacts of helicopter noise and whale watch wakes and congestion downtown – and we get significant amounts of revenue, without a doubt,” he said. “There’s also on a number of those sources of revenue, significant strings. We can only expand marine passenger fees and commercial vessel taxes in certain ways.”
• Contact Jasz Garrett at jasz@juneauindependent.com or (907) 723-9356.
