| | MANAGER'S REPORT:
Continued reductions to state services threaten the health of Juneau’s economy and the well-being of Juneau’s residents. To avoid continued reductions to state services, the State of Alaska must adopt and implement a long-term fiscal plan. The adoption and implementation of a long-term fiscal plan that fully funds essential government services will require new broad-based revenues. The Legislature is currently considering a statewide sales tax, an income tax, and other revenue measures as part of a long-term fiscal plan. Municipalities have long funded local government services by imposing local sales taxes carefully tailored to the needs of their local residents and economies. A statewide sales tax combined with existing local sales taxes will eventually result in communities reducing local sales tax rates and increasing local property tax rates to continue delivering essential municipal services and an income tax would tax workers in Alaska based on income and ability to pay.
The Assembly Finance Committee recommended this resolution at its meeting on December 1, 2021.
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