Juneau Assembly may ask voters how to pay for grocery sales tax exemption

The sales tax rate in Juneau is 5%. Local voters are likely to be asked in the October election if they’d be willing to raise the sales tax rate or property tax rate to pay for exempting food from sales tax. In committee last week, the Juneau Assembly set aside plans. If voters authorized it, basic groceries would become exempt from the city’s sales tax, and the city’s overall sales tax revenue would be mostly intact.

Advisory questions are not binding — they are a way for elected officials to take the temperature of voters on an issue. Voters would still have to be asked a regular ballot question to actually raise the sales tax rate. However, the Assembly can act on its own to change the property tax rate during its annual budget process.Raising the year-round sales tax rate to 5.5%;Raising the property tax rate by 1 mill, which would effectively increase most property tax bills by 9.5%.

“The only way that I can manipulate the table in such a way that it costs anybody more, is to presume that somebody has a very high property value,” Rogers said. “So obviously, once you get above 7, 8, $900,000? The property value is probably not one’s principal residence. It starts to be holdings of commercial properties or vacant land or whatever. So only in those categories does the math indicate to me that somebody comes out worse with tax-free food and a 1 mill increase.

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