I was born and raised in Anchorage where I was used to paying no sales tax. When I was in high school my family moved to Juneau where sales taxes were a thing. For sales made within city limits the tax was 3% and sales within the borough were taxed at 1%. Sometime — I think in the late 1970s — Juneau instituted a temporary 1% surcharge, making the tax 4% in town and 2% in the rest of the borough. The surcharge lasted for nine months and paid for a public swimming pool — a greatly appreciated improvement to the community. It was so popular that another temporary nine-month 1% surcharge was paid for a chairlift and day lodge on Douglas Island. Thus was born Eaglecrest, Juneau’s small but delightful ski resort.
Another temporary 1% tax was paid for a second chairlift and lodge improvements. Just after Eaglecrest opened, the second chairlift, the city decided on a temporary — for five years — 1% surcharge to pay for sewer and water infrastructure.
I’m not sure when it happened but after nearly a decade of paying 4% tax in town and a 2% tax everywhere else, the sales tax rate of 4% was made permanent and areawide. Since Jan. 1, 2024, the sales tax has increased to 5%. Now any purchase in the City and Borough of Juneau is taxed at the rate of 5%. And yes, Juneau also has property taxes. While history is never repeated, it does rhyme.
Taxes, once instituted, rarely go away. Property taxes are the fairest and simplest way for a city to collect revenue. And for those who believe that renters don’t pay property taxes, think again.
Landlords include taxes in the rent they charge. So before you decide to accept a “temporary” sales tax in Anchorage, please be aware that it is more likely than not that a temporary tax will become permanent and the rate will increase.
I have traveled extensively, and one of the things I appreciate the most about living here is that you pay the price on the tag.
No math involved. Do you really want your life to get more complicated and expensive? I don’t!
— John Farleigh
Anchorage
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