Back in 2015, the Juneau Assembly tried to strike a balance between the struggles of our senior citizens and those of young families trying to make a home here. After a very open, public and difficult process, the Assembly voted 7-2 to limit the senior sales tax exemption to essential purchases such as food, heating fuel, electricity and CBJ water and wastewater utilities.
From my experience selling real estate here for the past 18 years, I can report that the majority of people fleeing our community have been between the ages of 25 and 55, taking their children with them. Lack of affordable housing and the loss of state jobs seems to be major factors — and why Juneau has lost 400 people just this past year.
I view the issue of sales tax exemptions from two perspectives: fairness and Juneau’s changing demographics. Our community faces declining population, declining revenues, and yet increasing demands for public services.
Many of our current retirees have earned and now enjoy generous pensions and have appreciated the lack of a state income tax for almost 40 years. Most people recognize that in the future our Alaska seniors are unlikely to get free vehicle registration, free hunting and fishing licenses, reprieve from state income tax, free bus rides, or any sales tax exemptions whatsoever.
A group has registered with the Alaska Public Offices Commissions to make this single issue — reinstatement of the full senior sales tax exemption, the defining issue of the upcoming municipal election. The group is seeking commitments from candidates that the exemption program be reinstated for those previously eligible, then phasing it out for new retirees, ending the program completely within a specified period of time.
The evidence is becoming clear that this exemption is not sustainable into the future. If it was, this group would not suggest phasing it out. Picking at the scab of the wounds will not move our community forward. It will just “kick the can down the road” for future assemblies. Unfortunately, the day of reckoning is now. Our city, state and country have already done this for too long.
I support our senior citizens and appreciate their contributions, past and present, to our community and would like to see as many benefits as possible remain for our seniors as long as possible. I am open to the idea of seeing if it is legally and financially feasible to use CBJ bonding capacity to make the new assisted living facility a reality.
I have no desire to see the State of Alaska or the City and Borough of Juneau end the $150,000 tax exemption on primary residences owned by Juneau seniors.
But, on the Assembly, I represent all the citizens of Juneau, from our seniors to our children. I simply ask that we leave something for the next generation.
• Debbie White is an Assembly member and a resident of Juneau.
