A proposition on Juneau’s local ballot this year asks voters whether to lower the cap on the local property tax rate, also known as the mill rate. Advocates say the proposition will help make Juneau more affordable.
Proposition 1 seeks to cap the rate the city uses to determine how much residents pay in property taxes each year.
“Everyone who owns property in Juneau pays property tax to the city based on the value of their property. This would be capping the rate at which the Assembly can charge them for that,” said Assembly member Christine Woll.
The proposed cap is only slightly lower than what property owners are already paying currently.
Right now, the city caps the mill rate at 12 mills. That limit excludes debt service, which goes toward paying off the city’s existing bonds and loans.
If voters pass Proposition 1 this election, that cap would be lowered to 9 mills. Juneau’s current rate, when excluding debt service, is 9.16. But the rate has been higher before, and the Assembly wants the flexibility to charge more in the future.
But an advocacy group called the Affordable Juneau Coalition says the city needs to focus its spending on things it needs to fund, and not what it wants to fund. Angela Rodell is the treasurer of the group.
“I think it’s really imperative that the city show its residents that they care about affordability and want to really focus on the things that make this community very livable,” she said.
So, what would the change actually mean for your wallet? The city estimates that owners with property valued at half a million dollars or less would save about $80 per year in property taxes if the proposition passes. That’s assuming the home value stays the same.
Now, let’s compare that to the top commercial property owner in the city: Hecla Greens Creek Mine. It owns property valued at just under $285 million based on its 2024 assessment. With the proposed cap, it could save just over $45,000, assuming the value stays the same.
According to census data, more than a third of Juneau households are renters. And renters might not see any benefit from a cap — landlords have no legal obligation to pass any savings from the change on to their tenants.
So, the winner in this scenario is those who own a lot of property in town. The city is the loser. That’s because the Assembly would have less money to fund city services.
“The question that’s being asked this year is, ‘Do you think we should be focusing on making this a community that has services for our lowest-income people, or do you think that we should cut taxes for the wealthiest in the community to make things more affordable?’” Woll said.
The change would result in a roughly $1 million loss in revenue to the city year over year. The rate cap wouldn’t be immediately devastating to the city’s roughly $140 million in annual discretionary revenue. But less revenue equals less money to pay for services. Woll says over time, the Assembly may need to make cuts to the budget if the proposition passes.
For each dollar the city collects in property taxes, a bit more than 50 cents goes toward education and a little under 40 cents goes toward city services.
“When I think long term, it’s maybe less about the money and more about the city’s ability to respond to changing environments,” Woll said.
It’s unclear what services the Assembly might choose to cut. It would make those decisions after the election.
Rodell said she thinks the city can handle the change, and in doing so, it will prove to constituents that it, too, can tighten its belt.
“We know that the city can deliver a lot of services for 9 mills,” she said. “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.”
If approved by voters, the rate cap would be applied next city budget season. Election Day is Tuesday, Oct. 7.
Find the latest local election coverage at ktoo.org/elections.
