NOTN- The Juneau Assembly will consider changes to sales tax exemptions for nonprofit organizations during its regular meeting Monday at 6 p.m.

Ordinance 2026-32(b) would require qualifying nonprofits to collect and remit sales tax on most sales, services and rentals. Exceptions would include direct social services for vulnerable or disadvantaged people, such as food, housing and disability assistance.

The ordinance would also preserve exemptions for intermittent fundraising events, including auctions, bake sales and temporary markets. Those events could last no more than 14 consecutive days and happen no more than four times a year.

Below is the announcement released by CBJ.

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: 

1. 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). 
2. 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.