Over the past 72 years our family has started and operated numerous businesses in Juneau. In that time, the family businesses employed over 1,000 people, and we’ve paid our fair share of taxes to local, state and federal governments. I’m hopeful that tax-paying tradition will continue with the next generations of our family. Our city government, however, has become much less business-friendly in recent years, making it much more difficult to continue that 72-year tradition.
It has become obvious to anyone paying attention that this town is becoming less and less affordable for young families and entrepreneurs. That’s a big reason our school enrollment has declined and why many residents are questioning the spending habits of our elected Assembly. It’s why two citizen sponsored ballot measures, aimed at making Juneau more affordable, will be on the October ballot.
It’s frustrating that the Assembly response to these citizen ballot measures is to sponsor a third ballot measure that will make matters worse for Juneau residents and those who depend on Juneau as a regional hub.
First, it’s a tax increase in the aggregate, and then we’ll be paying an extra 2.5% for goods and services when we’re busy during summer months fishing, boating, taking care of homes, gardens, preparing for a flood or purchasing school clothes and supplies, etc.
So, while the Assembly’s target is visitors, by charging 7.5% sales tax April through September, Juneau residents will end up paying much more than we are now. Not only that; this seasonal sales tax unfairly targets the very visitors who have bankrolled Juneau’s bloated budget over the past several years.
Last Monday night I went to the Assembly meeting to remind our leaders just how much visitors already contribute to the local economy.
According to the 2023 CBJ sponsored McKinley research, cruise passenger direct spending in Juneau totaled $375 million. This is a huge number and how fortunate we all are to be on the receiving end of so much revenue.
In addition to that $375 million in direct spending, the CBJ received another $22 million through Marine Passenger Fees, Port Development Fees, Port Maintenance Fees, the Commercial Passenger Vessel Excise Tax, and other fees, and some of those fees are going up next year with recent rate increases.
In addition to that $397 million, visitor-related spending generated another $18 million in CBJ sales tax revenues, plus property tax revenues from those in the visitor industry. It must be close to a half billion dollars generated from seasonal visitors — very close to the budget number our Assembly passed in June for a community of 31,000.
As a lifelong resident, I’m troubled that our elected leaders are not exercising a little self-reflection and restraint. Instead, they target the tourists to solve the problems they’ve created all on their own. It’s time for budget discipline.
Our seasonal visitors and the boats they arrive on are most definitely paying their fair share. What we should be debating now is whether the Assembly is spending that money responsibly to the benefit of all our residents. Perhaps that question will be answered when we all vote this fall. Please vote, beginning in late September.
Just how greedy do we need to be?
• Bob Jacobsen is a lifelong Juneau resident who has started and managed successful businesses in Juneau and Southeast Alaska.
