Development News for Juneau, Alaska

Committee Advances Bond Ordinances for Water/Wastewater Utilities and School Maintenance

The Assembly Finance Committee considered two bond ordinances. The first, Ordinance 2026-XX (later confirmed as related to a $9.4 million bond), authorizes the issuance of bonds for water and wastewater utility capital improvements. The second, Ordinance 2026-XX (later confirmed as related to a $16 million bond), authorizes the issuance of bonds for school maintenance. Concerns were raised about the city's capacity to execute projects funded by both the new proposed bonds and previously approved bonds, with assurances that debt issuance would be metered over time. The potential for inflation to increase project costs if bonds are delayed was also discussed. Assemblymember Smith objected to the water/wastewater bond this year, citing the recent rate increases and the potential for numerous ballot measures. However, the motion to move the water/wastewater bond ordinance forward passed 6-2. The school bond ordinance was also considered, with concerns raised about potential school consolidations affecting the long-term need for specific facility improvements. The school district superintendent explained that while consolidations are discussed, no specific schools are targeted, and the bond language allows for flexibility in project selection. The school bond ordinance was moved forward without objection.

Sales Tax Code Amendments Discussed, Including Receipt Dates, Marketplace Facilitators, and Nonprofit Exemptions

The Assembly Finance Committee discussed five sales tax ordinances. Ordinance 2026-20 redefines payment receipt dates away from postmarks to the date CBJ receives them, and grants the treasurer authority to waive penalties and interest on sales tax, similar to property taxes. Ordinances 2026-21 and 2026-22 are housekeeping items related to updates from the Alaska Remote Sellers Sales Tax Commission (ARSSTC). Ordinance 2026-21 aligns CBJ's code with ARSSTC's updates. Ordinance 2026-22 opts CBJ into ARSSTC's collection services for marketplace facilitators. Ordinance 2026-25 (later amended) proposes repealing exemptions for services provided by tour agents to tour operators, treating them as taxable services, which would result in higher sales tax collection. The amendment, proposed by Mayor Weldon, treats tribes as governmental agencies, removing their exemption for sales and services, and also removes exemptions for fundraising activities by certain nonprofits (sections 14 and 15 of the original ordinance). The amendment also clarifies that 'social services' provided to vulnerable individuals are exempt. The committee also discussed Ordinance 2026-XX (later amended to 2026-32) which removes exemptions for sales, services, and rentals conducted by nonprofits unless they qualify as social services, with specific exemptions maintained for entities like the city, state, tribes (as amended), and school districts. The discussion around Ordinance 2026-25 focused on whether it constituted double taxation, the impact on independent operators, and its application to various business models, including comparisons to car dealerships and multi-level marketing companies. The committee voted to move several ordinances forward.

Committee Advances Sales Tax Ordinances and Bond Measures Amidst Debates on Equity and Fiscal Impact

The Assembly Finance Committee held discussions on various ordinances related to sales tax and bond measures. Ordinance 2026-20 proposed changes to how payment receipt dates are determined and granted the treasurer authority to waive penalties and interest on sales tax. Ordinances 2026-21 and 2026-22 were housekeeping measures related to the Alaska Remote Sellers Sales Tax Commission (ARSSTC). Ordinance 2026-25 aimed to repeal exemptions for services provided by tour agents to tour operators, which was debated extensively regarding its potential impact and fairness. Mayor Weldon proposed an amendment to a related ordinance (2026-XX, later 2026-32) that would treat tribes similarly to governmental agencies regarding tax exemptions, remove exemptions for certain nonprofit fundraising, and clarify exemptions for social services. The committee also advanced bond ordinances for water/wastewater utilities ($9.4 million) and school maintenance ($16 million), despite concerns about project execution capacity, inflation, and the timing of ballot measures. The school bond discussion included considerations of potential school consolidations and the flexibility of fund usage.