Juneau’s new senior citizen sales tax exemption rule takes effect July 1. That means old exemption cards will no longer be valid.
The Juneau Assembly passed an ordinance change last month that limits the 5 percent sales tax exemption to only Juneau residents. Currently, all Alaska residents who are 65 or older are eligible.
To implement the change, the city is issuing new cards in June to those who can prove Juneau residency. Clinton Singletary, sales tax administrator for the City and Borough of Juneau, says the city will be strict about the effective date of the new ordinance.
“If July 1 rolls around and they haven’t come in for the new exemption card, the old exemption cards are going to be invalid. It’s going to be up to merchants to be tough on that,” Singletary says.
He says about 3,000 new cards will be issued. Through the ordinance change, the city anticipates increasing revenue by about $200,000 to $350,000 a year.
Narrowing who qualifies for the tax exemption to only Juneau residents will affect some Alaska seniors who are used to not paying sales tax in the capital city.
“We’ve got legislative people that come down just for session. Because they’re a state of Alaska resident, they were entitled to have an exemption card for their Juneau purchases. Similar to some of the neighboring communities that generally come to town and shop,” Singletary says.
The city is encouraging Juneau seniors to get their new cards next month to avoid any hassles come July 1, but the city will still be issuing cards after that date.