2025 Ballot Proposition FAQs

2025 Ballot Proposition Information & FAQs

Click below for informational resources related to the 2025 City & Borough of Juneau Municipal Election. This information is also provided in the printed Voter Information Guide mailed to Juneau residences.

 

 

For information on how and where to return your ballot, election results and more, visit juneau.org/clerk/elections.

 

Frequently Asked Questions
2025 City & Borough of Juneau Municipal Election
Ballot Proposition

 

PROPOSITION NO. 1 – Mill Rate Cap Amendment

SHALL THE CITY AND BOROUGH OF JUNEAU CHARTER SEC. 9.7 BE AMENDED AS FOLLOWS:

Section 1. … ( c ) Except as provided in this section, the assembly shall not levy on real or personal property any tax exceeding the total of 9 mills 12 mills plus that additional millage required to service general obligation indebtedness. The assembly may levy a tax exceeding this total only after seeking and securing voter approval by a majority of those voting on the question at a general or special election.

Section 2. Effective Date. This measure shall be effective 30 days after enactment.

Q: Do we already have a mill rate cap?

A: Yes. CBJ charter Section 9.7, Section 1 caps the non-debt mill rate at 12 mills. Proposition 1 would reduce the cap to 9 mills.

Q: What does the mill rate consist of?

A: The mill rate has four components applied to parcels based on their physical location in the borough:

• Area wide (applies to all property in the borough)
• Roaded Service Area (applies to all property with access to the road system)
• Fire Area (applies to the area of the borough in which Capital City Fire and Rescue responds)
• Debt service (pays for voter approved capital debt)

Q: What impact would a 9 mill rate cap have on the FY26 and FY27 budgets?

A: The Assembly adopted a 10.24 mill rate for FY26, 1.08 of which was debt service, resulting in a non-debt mill rate of 9.16 mills. Proposition 1 would not change the FY26 mill rate.

However, assuming no changes to values or budgets for the FY27 budget process, the City and Borough would plan for a revenue reduction of $1,050,716 based on reducing the mill rate to 9.0 mills.

Q: What impact could a 9 mill rate cap have on future budgets?

A: Property tax revenue is based on a calculation: Assessed Property Valuation x Mill Rate = Property Tax Revenue. If assessed valuation goes down, the mill rate cannot be adjusted higher than 9 mills to maintain property tax revenue.

Q: Who pays the majority of CBJ property taxes now?

A: The top 3 property taxpayers in the City and Borough of Juneau are HECLA Greens Creek Mining, Couer Alaska and Alaska Electric Light & Power. Commercial property taxpayers account for 30% of all property tax revenue.

Q: What impact could the mill rate reduction cap have on residential property

owners?

A: Owners with property assessed at $500,000 would pay $80 less per year in property taxes in FY27 compared to FY26, with no change in home value. Owners with property assessed at $10,000,000 would pay $1,600 less per year in property taxes in FY27 compared to FY26, with no change in home value.

Q: What percentage of CBJ taxpayer revenue is generated from property taxes?

A: The General Government function is funded through several major sources. In the FY26 budget, the general government (including education) expense is $221.6M. Property tax revenue (excluding debt service) is expected to be $57.6M or 26% of the revenue supporting General Government. The remainder of General Government is funded by sales taxes, state and federal grants, charges for services, marine passenger fees, and other smaller revenue sources.

Q: What do property taxes pay for?

A: While the allocation changes slightly from year to year, in FY26, 52% is going to Education, 37% to City Services (including roads, fire, etc.) and 11% for debt service.

 

PROPOSITION NO. 2 – Sales Tax Exemption

This initiative petition proposes to amend the City and Borough of Juneau (CBJ) Code 69.45.040 to create a new section which would exempt essential food and non-commercial utilities from CBJ sales tax for residents within the City and Borough.

Q: How much revenue does CBJ estimate it collects from food-based sales taxes and how does it arrive at that estimate?

A: Based on merchant sales tax reporting, revenue from food-based sales tax is estimated to be $5M-6M per year. Merchants do not report food sales separately from other sales in their store (think about Fred Meyer and Costco as examples where parts of the stores are dedicated to food, and other parts to non-food items). CBJ staff have made estimates on the percentage of sales that are food related and would potentially be exempt. (See 2025 Sales Tax Estimates and Calculations)

Q: How much revenue does CBJ estimate it collects from utility-based sales taxes and how does it arrive at that estimate?

A: Revenue from residential utility-based sales tax is estimated to be $4-5M per year. Utility merchants do not report sales data based on residential or commercial use. This number is an estimate, based on confidential data reported by merchants and an extrapolation of CBJ water & wastewater utility data.

Q: What utilities are included in the proposed exemption?

A: Electricity, heating oil/propane/wood pellets, water & sewer, garbage & recycling at the resident’s primary place of residence.

 

 

PROPOSITION NO. 3 – Seasonal Sales Tax

This ballot proposition would implement a new permanent sales tax at a rate of 2% October 1 through March 31, 6.5% April 1 through September 30 and repeal the temporary 3% sales tax and permanent 1% sales tax. This would not repeal the 1% temporary sales tax approved by voters in October 2023. The result is total sales tax rates of 3% in the winter and 7.5% in the summer.

Q: What is the current sales tax rate?

A: Currently, the local sales tax is 5% and is comprised of three components that generally apply to all goods and services. This proposition would repeal the first two of the three components described below. The third component (temporary sales tax) will be up for voter consideration in the October 2027 municipal election.

• 1% permanent sales tax – supports general City & Borough operations
• 3% temporary sales tax
  • 1% supports general City & Borough operations
  • 1% projects, grants and other services
  • 1% infrastructure (roads, sidewalks and related)
• 1% temporary sales tax
  • Capital improvement projects and other projects (https://juneau.org/onepercent)

Q: If both Proposition 2 (sales tax exemptions) and Proposition 3 (seasonal sales tax) are approved by voters, how much would the average person pay in sales tax per year?

A: Based on calendar year (CY) 2024 sales tax data (See 2025 Sales Tax Estimates and Calculations), the typical Juneau resident spends approximately $370.17 per quarter, or $1,480.68 per year with a 5% sales tax.

Typical Juneau resident figures are based on total tax (minus taxes paid by visitors) divided by the population. With food and utilities exempted (Proposition 2) and the proposed seasonal sales tax rates (Proposition 3), the typical Juneau resident would spend approximately $168.42 in sales tax in the winter quarters and $421.06 in sales tax in the summer quarters, based on recent sales tax history this totals $1,178.96 per year, a potential savings of $301.72.

Q: If both Proposition 2 (sales tax exemptions) and Proposition 3 (seasonal sales tax) are approved by voters, what would the impact be on City & Borough revenue?

A: If both propositions pass, the net impact on municipal revenue is estimated to be minimal. In placing this proposition on the ballot, the Assembly expressed its intent to compliment Proposition 2, enabling community will for the proposed exemptions while caring for the estimated revenue loss.