The Juneau Assembly voted Monday night to indefinitely table an ordinance that would have required nonprofits in Juneau to charge sales tax for goods and services.
That’s after leaders from more than a dozen nonprofits testified against the ordinance.
Scott Fergusson is a volunteer board member of the Great Alaska Council of Scouting America. He argued the ordinance would place unfair administrative and financial strains on many already lean, volunteer-run organizations.
“We do not see how forcing nonprofit youth-serving organizations to charge 5% more for their programs, along with the additional administrative burdens heaped on organizations that rely heavily on volunteers, supports youth activities,” he said.
The proposal came about as the Assembly looks to find new sources of revenue for the city after tax cuts last election. The city is now struggling to maintain current services.
The city’s finance director originally anticipated the ordinance, if passed, could generate an additional $3.3 million in funding each year. However, at the meeting, Mayor Beth Weldon said it is actually projected to be lower than that.
Several testifiers, like Josh Fortenbery, the president of the Alaska Folk Festival, also called the ordinance vague and confusing. He argued the ordinance was not the right path to fix the city’s financial issues.
“I think you might have overestimated the capacity of a lot of us that have all volunteer boards or staff and no paid staff to figure out how to deal with this administratively,” he said. “On a technical level, though, I think this proposed ordinance is extremely confusingly drafted, and I’m an attorney by trade.”
The motion to indefinitely table the ordinance passed in a 6-2 vote, with Assembly member Neil Steininger and Nano Brooks voting against it. Assembly member Maureen Hall was absent.
This story has been updated to correct the spelling of Josh Fortenbery’s last name.
