Agent Commission Sales Tax Exemptions

At a glance

• What: Two ordinances would repeal sales tax exemptions for commissions charged by agents: travel, lodging and tours (Ordinance 2026-25) and negotiated sales or leases (Ordinance 2026-33).
• Where it stands: The travel, lodging and tours repeal failed 4-5 on June 8, 2026. The negotiated sale or lease repeal was adopted by unanimous consent on July 27, 2026.
• Next: No further action recorded on Ordinance 2026-25.

Travel, lodging and tours (Ordinance 2026-25)

Public testimony on June 8: Jeff Fanning, a travel agent and tour operator, said the exemption prevents cascading taxes where one transaction is taxed twice in the supply chain. Three other speakers agreed, including a point that a rental car sale would be doubly taxed and that the ordinance would raise little revenue. Cody Richardson was among them.

Ms. Adkison moved to adopt. Deputy Mayor Smith amended the effective date to January 1, 2027 (unanimous consent). Mr. Brooks objected that the exemption works like the resale exemptions, and businesses would restructure to avoid the tax. Deputy Mayor Smith said he was unconvinced it was double taxation. Ms. Hughes-Skandijs said the agent's commission is plainly a taxable service. Ms. Woll compared it to her own work as a yoga instructor, and Attorney Wright confirmed she would owe sales tax on that. Mr. Kelly asked about history; the attorney said nothing documents why the exemption was enacted in the late 1970s.

Vote as amended: failed 4-5 (yes: Adkison, Kelly, Woll, Hughes-Skandijs; no: Brooks, Hall, Steininger, Smith, Weldon).

Negotiated sale or lease (Ordinance 2026-33)

Repeals the agent commission exemption for negotiated sales or leases entirely. Reviewed by the Assembly Finance Committee on May 13, 2026, introduced June 8, and adopted July 27 on Mr. Kelly's motion by unanimous consent with no public comment.

Sources

• Assembly regular meeting minutes (Meeting 2026-12), June 8, 2026: https://juneauak.api.civicclerk.com/v1/Meetings/GetMeetingFileStream(fileId=13131,plainText=false)
• Assembly regular meeting minutes (Meeting 2026-15), July 27, 2026: https://juneauak.api.civicclerk.com/v1/Meetings/GetMeetingFileStream(fileId=13275,plainText=false)

Log

2026-07-27 - Regular Assembly Meeting

Ordinance 2026-33 adopted by unanimous consent.

2026-06-08 - Regular Assembly Meeting

Ordinance 2026-25 failed 4-5 after public testimony; Ordinance 2026-33 introduced on consent.

• 2026-11-16 - 2026-11-16 - Regular Assembly Meeting: Ordinance 2026-47 to reinstate the exemption is for introduction on the consent agenda; the agenda calls for a special meeting no later than November 30.