While there were no ballot measures in Wrangell’s municipal election last week, Petersburg and Juneau voters decided sales tax questions in their Oct. 6 elections.
Petersburg voters narrowly …
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While there were no ballot measures in Wrangell’s municipal election last week, Petersburg and Juneau voters decided sales tax questions in their Oct. 6 elections.
Petersburg voters narrowly defeated a measure that would have increased the maximum amount of a single purchase that could be taxed. For decades, Petersburg’s cap has been $72 maximum on a $1,200 purchase. The measure, placed on the ballot by the borough assembly, would have raised the maximum taxable amount to $5,000 on a single invoice, which would have produced a $300 tax at Petersburg’s 6% rate.
Petersburg officials say $1,200 is the lowest cap among major towns in Southeast Alaska.
Wrangell caps the taxable amount of a single invoice for goods or services at $5,000.
The Petersburg assembly tried two years ago to raise its sales tax shut-off point, but voters rejected that effort.
This month’s vote failed with 545 in favor and 559 against the change.
In another close vote last week, Petersburg voters narrowly approved a citizens initiative on the ballot to expand the community’s senior citizens sales tax exemption to all residents aged 70 and older, regardless of income.
Last year, voters decided in a 633-624 count to limit the senior sales tax exemption to just low-income residents age 65 and up. Before the vote, the exemption had applied to all seniors, regardless of income.
By a 0.2% margin, 565-545, voters last week removed the income qualification for seniors 70 and older, while keeping it in place for seniors age 65 to 69.
The senior exemptions apply only to Petersburg residents who have lived in the community for at least a year.
Officials have not reported how much the expanded tax exemption will cost the borough in lost revenue.
Wrangell’s municipal code does not provide for a senior citizen exemption from its 7% sales tax.
In Juneau’s municipal election, voters narrowly approved adding a 1% seasonal sales tax to the borough’s existing 5% tax rate.
The seasonal addition to the sales tax rate, intended to capture more revenue from tourists spending money in town, was comfortably ahead as of Oct. 9, with a small number of late votes still to count, 5,503 to 4,168.
The combined 6% tax rate will apply April 1 to Sept. 30, reverting back to 5% on Oct. 1 every year.
The higher rate will take effect on April 1, 2027.
Borough officials have estimated the additional 1% will raise about $6.8 million annually, split about equally between residents and visitors.
Although supporters promoted the tax to fund indoor and outdoor recreation, the assembly is not bound by that electioneering and can appropriate the extra money during the annual budget process, the same as any other general fund revenues.