Two proposed ballot initiatives received enough public support to appear in Juneau’s municipal election this fall. Voters will be asked whether to place a limit on the city’s property tax rate and remove local sales tax on food and utilities.
Angela Rodell is a member of the advocacy group behind the ballot initiatives called the Affordable Juneau Coalition. She said the goal of the two propositions is to lower the cost of living for residents in Alaska’s capital.
“I look at it as ‘How do we get some money back to people so that they can feel like they’re getting a little bit of relief?’” she said.
The advocacy group gathered more than 2,700 signatures for each proposition within the city clerk’s office’s extended deadline. It also sought signatures for a third petition to make in-person voting the default again in Juneau’s local elections. Rodell said it didn’t quite get enough signatures.
The city’s current local sales tax on food and utilities brings in a combined $10 to $12 million in revenue each year. If the ballot proposition to remove those taxes is approved by voters, city leaders say the city would likely have to reduce its spending or slash some services to make up the gap.
The proposed cap on the city’s property tax rate would also significantly reduce the city’s income. Property taxes make up roughly 40% of the city’s general fund revenue.
Rodell, who unsuccessfully ran for mayor last election, said she hopes the proposed property tax limit will push Assembly members to make tough decisions and focus city spending on community needs versus wants.
“What we’re asking the city to do is to continue to be really thoughtful about how and where and when they collect tax and spend that tax to keep Juneau affordable,” she said.
The Assembly is also currently considering a separate proposal that would exempt food and utilities from sales tax by putting into place a new seasonal sales tax system. Members have until later this month to take public testimony and decide whether to put that question on the ballot for voters.
Voting in this year’s municipal election ends on Tuesday, Oct. 7.
