The City and Borough of Juneau Assembly will discuss several ordinances, including one pertaining to the sales tax exemption for non-profit sales, during the September 14 Regular Assembly Meeting at 6 p.m. The full agenda and meeting participation instructions are available at juneauak.portal.civicclerk.com.
Currently, sales, services, and rentals made by qualifying 501(c)(3), 501(c)(4), and 501(c)(19) organizations are broadly exempt from sales tax. At Monday’s meeting, the Assembly will take public testimony on ordinance 2026-32(b), which would narrow sales tax exemptions in the following ways:
- When a non-profit is selling items or services or providing rentals, they will need to collect and remit sales tax from their customers unless they fall into the two categories below:
- Sales of social services provided by a qualifying non-profit, defined as direct services to vulnerable, disadvantaged, or distressed individuals to meet basic life needs (food assistance, housing assistance, disability support, day services, senior and assisted living support).
- Sales of goods, services, and rentals tied to intermittent fundraising events, defined as a discrete campaign, gala, auction, bake sale, or temporary market drive lasting no more than 14 consecutive days and occurring no more than four times per calendar year.
A non-profit that purchases items, services or rentals may continue to procure those items without paying sales tax with a sales-exempt card from CBJ. Non-profits with ongoing or regular sales activity that fall outside of these three categories would need to collect and remit sales tax. The existing sales tax exemption on essential food and utilities would continue to apply to non-profit sales of SNAP-eligible foods.
Ordinance 2026-32(b), if adopted, would take effect January 1, 2027.
Residents who want to provide testimony on this ordinance or any other topics may email BoroughAssembly@juneau.gov on or before September 14. They can also sign up for in-person testimony before the meeting in the Assembly Chambers, or testify remotely by calling the City Clerk’s Office at 907-586-5278 before 4 p.m. on the day of the meeting.
For questions, contact communications@juneau.gov.