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Juneau assembly sends seasonal sales tax question to October ballot amid heated public debate

5492349 · July 29, 2025
AI-Generated Content: All content on this page was generated by AI to highlight key points from the meeting. For complete details and context, we recommend watching the full video. so we can fix them.

Summary

After hours of testimony from residents and business owners, the assembly approved an ordinance to place a seasonal sales tax on the Oct. 7 ballot; amendments were adopted to link the proposal to a concurrent citizen initiative exempting food and utilities and to reduce the winter rate.

The City and Borough of Juneau assembly voted July 28 to place a seasonal sales tax proposal on the Oct. 7, 2025 municipal ballot, following extended public comment and multiple amendments. The ordinance would impose a higher sales tax rate for the April‑through‑September season and a lower rate October‑through‑March; the assembly also added language to clarify that the seasonal measure is intended to replace revenue if voters approve an exemption of essential food and residential utilities.

Affordable Juneau Coalition and other residents urged the assembly not to adopt the ordinance without waiting for the outcome of a citizen initiative that would exempt groceries and utilities. Angela Bridall of Affordable Juneau testified that the combined effect of a seasonal increase and exempting food and utilities could make the tax structure confusing and argued the city should “await the results of the sales tax exemption initiative in October, and reconsider how we approach affordability, equity, and fiscal responsibility in Juneau.” Business owners and other residents opposed the ordinance as well, saying it would make the cost of living harder for local workers and that visitors already contribute substantial revenue through passenger fees.

Assembly members offered and debated multiple amendments to the proposed ordinance. Key amendment votes included: - An amendment proposed by Assemblymember Wall clarifying in ballot language that the seasonal measure is “estimated to replace any revenue reduced due to an exemption of essential food and residential utilities.” The assembly adopted that amendment by unanimous consent. - An amendment narrowing the winter/summer rate gap (Assemblymember Steininger) failed on a roll call (2 yeas, 5 nays). - An amendment to change ballot language for transparency (Assemblymember Kelly) failed (4 yeas, 3 nays). - Deputy Mayor Greg Smith offered an amendment that reduced the winter rate to 3% (from a proposed 3.5%) while keeping the summer rate at the proposed level; that amendment passed on roll call (6 yeas, 1 nay).

After amending the measure, the assembly approved sending the ordinance to the ballot by unanimous consent. City staff and members of the assembly said the proposal and the separate citizen initiative to exempt food and utilities are intended to be complementary: the seasonal rate shift is meant to replace revenue lost if exemptions pass. Opponents warned that multiple ballot measures on the same topic would confuse voters and could create a large budget shortfall if both measures were approved and the city did not identify replacement revenue.

The ordinance language adopted for the ballot will be posted with the city clerk's office and the official voter pamphlet. If the ballot measure passes, staff said the city would need to implement rate changes and adjust budgeting assumptions; staff also noted the uncertainty in revenue modeling and the need for additional economic analysis as the initiative and ballot measure proceed.

Votes on related ballot and finance measures were held earlier in the meeting; the assembly also delayed and debated several bond propositions and other ordinances before reaching its decision on the seasonal sales tax measure.

The city clerk will publish the final ballot language and timeline for voter information ahead of the Oct. 7 election.