Juneau Assembly votes 6-2 to table nonprofit sales tax ordinance indefinitely

Qualifying Juneau nonprofits will not begin collecting sales tax on sales, services and rentals in January. The Juneau Assembly voted 6-2 Monday to table the ordinance indefinitely. Tabling kills the measure unless it returns at the next meeting, the city attorney said.

The ordinance, set to take effect Jan. 1, 2027, would have narrowed the nonprofit exemption to social services and fundraising events lasting no more than 14 consecutive days, four times a year. Exemptions for dues, youth camps and contracted government services would have remained. Supporters cited revenue needs and tax equity with for-profit businesses.

More than a dozen people testified, including representatives of arts, animal rescue, Scouting and Alaska Native heritage groups. They cited vague definitions and compliance costs.

Mayor Beth Weldon, who had backed earlier versions of the ordinance, said the testimony was not what changed her mind.

"It's the confusion that seems to be creating, and that's what's troublesome to me because I don't like any legislation that's confusing and many different ways to interpret it," Weldon said. She said she would look for other ways to raise revenue.

Assembly members Neil Steininger and Nano Brooks opposed tabling the ordinance. Steininger said he would rather refine it that night.