The Juneau Assembly is slated to vote on an ordinance on Monday that would require nonprofits in Juneau to charge sales tax for goods and services — something they’re currently exempt from.
If passed, the ordinance would revise the city’s current sales tax exemptions for nonprofits and narrow the exemptions currently in place.
The proposed change comes as the Assembly looks to find new areas of revenue as the city struggles to maintain current services. This follows a reduction in revenue after tax cuts last election. The city finance director anticipates the change could generate an additional $3.3 million in funding each year.
However, many nonprofits in Juneau say they are concerned about the potential change. At a meeting in late July, the Assembly postponed voting on the ordinance after multiple nonprofits testified against it, arguing it would create new administrative and financial burdens for already lean organizations.
Some Assembly members have also shared hesitancy about moving it forward, like Assembly finance chair Christine Woll, who called the ordinance “rushed” and “a mess” during a committee meeting last week. If approved, the changes in the ordinance would go into effect in January.
Also on the agenda for Monday night are several ordinances related to glacial outburst flood mitigation and funding repairs to HESCO barriers following the August flood.
The Assembly will enter into an executive session at the end of the meeting to do an annual evaluation of the city manager and city attorney, and address their compensation at the end of the meeting as well. The city manager’s current salary is $236,371 and the city attorney’s current salary is just under $208,665.
Juneau residents can testify on ordinances on Monday’s agenda – as well as on non-agenda items – in person or online before the Assembly votes. People who want to testify online must notify the city clerk by 4 p.m. before the meeting. The meeting begins at 6 p.m. at City Hall.
