Essential Food and Utility Exemptions

APPLY ONLINE FOR YOUR UTILITY SALES TAX EXEMPTION CARD

In the October 2025 municipal election, Juneau voters approved Ballot Measure 2, which proposed the exemption of sales tax on essential food and non-commercial utilities for Juneau residents at their primary place of abode.

Essential Food Exemption

This exemption is similar to the existing Senior Sales Tax exemption and applies to qualifying food items intended for home consumption, as defined in the Food and Nutrition Act of 2008, or food eligible for the federal Supplemental Nutrition Assistance Program (SNAP). The exemption applies to SNAP-eligible food purchases made on or after November 20, 2025.

Under CBJ 69.05.040(44), “essential food” as defined in 7 U.S.C. § 2012(k), includes:

1. any food or food product for home consumption except alcoholic beverages, tobacco, hot foods, or hot food products ready for immediate consumption.
2. seeds and plants for use in gardens to produce food for personal consumption.

Examples of exempt and taxable food include:

Exempt: dairy products, fruits and vegetables, bakery items, cereals, ice cream, cold sandwiches for off-premises consumption, seeds and plants that grow food, items with a Nutrition Facts label, etc.

Taxable (non-exempt): alcohol, tobacco and tobacco products, hot prepared foods, restaurant meals, foods intended to be eaten on-site, pet food, vitamins, cough drops, items with a Supplement Facts label, decorative gourds, etc.

A detailed list of examples of exempt and taxable items can be found above. Please note this is not an exhaustive list, but intended to provide guidance on common product categories. Contact the Sales Tax Office at (907) 586-5215 x4901 if you have any questions.

Essential Utility Exemption

Proposition 2 defines “essential utilities” as those sold to individuals for non-commercial use within the City and Borough of Juneau.

Because most, if not all, utilities already designate commercial and residential rates for billing purposes, and to ensure that the intent of the ballot sponsors and the will of the voters is honored, CBJ is working with utilities to utilize their definition of residential and commercial while maintaining the intent of the ballot initiative. CBJ also provided definitions for guidance where utilities do not already designate rates as commercial or residential.

In practice, this means that residents are not required to obtain an exemption number or card to receive the exemption for billed utility use (electricity, water, etc.). However, residents may choose to apply for an exemption card if they intend to make retail purchases of eligible essential utilities (wood pellets, propane, etc.). If residents believe they are mistakenly designated as commercial by billed utilities, they may also apply for a utility sales tax exemption card and submit their exemption card to the utility to receive the exemption. Essential utilities exemption cards can be applied for using the online form, the PDF form can be filled out and emailed or mailed to the Sales Tax Office, or you can apply in person at the CBJ Sales Tax Office.

CBJ is working with utility providers on the implementation process as quickly as possible. It may take time for providers to apply the new exemptions to their many thousands of accountholders.

Essential utilities under this exemption include:

• Electricity – Your electricity bill from your principal place of abode.
• Heating Fuel – This includes heating oil, propane (used for heating), wood heating pellets, wood and kerosene used for heating your principal place of abode.
• CBJ Water Utilities – CBJ water and wastewater service at your principal place of abode.
• Garbage Collection / Landfill – Curbside garbage and recycling collection at your principal place of abode as well as charges for your personal use of the landfill.

Additional guidance on essential utilities can be found above. Contact the Sales Tax Office at (907) 586-5215 x4901 if you have any questions.