Office of the City Clerk



City and Borough of Juneau

Tax Policy Subcommittee

February 15, 2005 at noon, Chambers


I.             Call to Order


•  Items for Presentation and Discussion


•  Sales Tax Exemptions-

The Subcommittee identified 12 sales tax issues they would like presented for review.   We are presenting information on the follow four exemptions at this meeting.


                    1.      Non-Profit Sales Tax Exemption

                    2.      Senior Citizen Sales Tax Exemption

                    3.      Non-Resident Sales Tax Exemption

                    4.      Newspaper Carrier Exemption


Additional information on these exemptions is contained in the packet materials.   We have provided the following information for each item.


•  Exemption (code) Language

•  What the exemption actually exempts

•  What the exemption does not exempt

•  What merchants are affected by the exemption

•  Financial impacts

•  General issues

•  Exemption options

•  What other communities do for these types of transactions


Staff will review will review through these information with the Subcommittee during the meeting.


•  AML request for State Legislative Action

On February 7, 2005, Kevin Ritchie distributed the following information releases.


Recently, in the latest version of the Alaska Budget Report, Senator Gary Wilken was quoted during a discussion concerning senior and disabled veterans’ property tax exemption.   When asked how he (the Senator) felt about the fact that the exemption is mandated by the state, yet the state does not reimburse the local governments, the Senator responded with:


        “I guess I would ask each assembly to weigh in on that, what they’d like to do.   If all the governments, or a significant amount of governments, share that request, I guess we can look at that.”


I would, therefore, like to request that every municipality that levies a property tax, write a letter, addressed to Senator Wilken and “weigh in” on the subject.


Enclosed in the packet is a draft letter in response to Kevin’s recommendation for the Subcommittee’s review.


•  Information Items

If time permits, staff will present to the Subcommittee additional information on the following sales tax issues.

•  Discussion with the Committee on their thoughts and direction for the construction/contractor exemptions (#4 and 5)

•  Discussion on the State’s flight seeing exemption.

•  Eliminating the video gaming exemption (we currently issue gaming permits)

•  Discussion of the capital leasing cap (some provisions already exist).


IV.          Adjournment