Voters likely to see separate questions for seasonal sales tax, sales tax exemption for food/utilities on fall ballot

Juneau Assembly simplifies its proposal for higher tourist season rate by removing sales tax exemptions that already appear on separate citizens’ initiative

Juneau Assembly members Christine Woll (left) and Wade Bryson discuss a proposed seasonal sales tax measure for the fall municipal election during a Finance Committee meeting at City Hall on Wednesday, July 9, 2025. (Mark Sabbatini / Juneau Independent)

Juneau residents will likely get to vote this fall on both a seasonal sales tax that’s higher during tourist season as well as a sales tax exemption for essential food and residential utilities.

Juneau Assembly members modified their seasonal sales tax proposal on Wednesday night by removing food/utilities exemptions, meaning it will no longer overlap with a separate citizens’ ballot initiative focusing solely on the sales tax exemption.

The change occurred after city leaders during an Assembly Finance Committee meeting Wednesday expressed concerns about possible voter confusion and legal complications if two overlapping proposals appeared on the Oct. 7 municipal election ballot.

Assembly Member Wade Bryson, who proposed the change, said the result is residents will be asked two simple and separate questions rather than trying to figure out differences that may be confusing with two somewhat similar questions.

"They both pass and we get the outcome that we're looking for," he said, adding voters may be more likely to reject the Assembly’s proposal if they think the choice is one or the other.

The sales tax exemption that qualified for the ballot, after sufficient signatures were gathered on petitions by the Affordable Juneau Coalition, applies to "essential" food and residential utilities. Restaurant and other prepared/convenience foods would still be subject to the city’s sales tax that’s currently a flat 5%.

The seasonal sales tax proposed by the Assembly would set the rate at 3.5% between October and March, and 7.5% between April and September. Assembly Member Neil Steininger, who joined two other members in proposing those rates at a previous Finance Committee meeting in May, said the increased revenue during the tourism season would be sufficient to allow an exemption for food and utilities.

However, some Assembly members are expressing concern about only the sales tax exemption passing because it would result in the loss of millions of dollars of revenue annually for the city.

Furthermore, the Affordable Juneau Coalition also got enough signatures to put another question on the ballot that will lower the cap on property taxes to nine mills instead of 12 (not including debt service). City Finance Director Angie Flick estimates passing the sales tax exemption and mill rate cap will cost a total of $10 million to $12 million annually.

The modified seasonal sales tax proposal was advanced to the full Assembly by a unanimous vote during Wednesday’s Finance Committee meeting. It will be subject to public comment and further possible modification before the full Assembly votes on placing the question on the ballot.

Assembly members rejected by a 6-3 vote a proposal by Christine Woll, the Finance Committee chair, to have city staff draft a sales tax exemption similar to the one on the ballot for Assembly members to consider at its July 28 meeting. The Assembly can remove the ballot measure by passing a "substantively similar" ordinance, but members opposing Woll’s proposal said they believe voters should decide the question.

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