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Alaska lawmakers failed Thursday to override Gov. Mike Dunleavy’s veto of a bill that backers said would have modernized Alaska’s corporate income tax system.

The override failed 35-25. It would have required a 45-vote majority to become law.

Senate Bill 113 would have expanded the state’s corporate income tax to capture revenue from so-called “highly digitized businesses” that sell to Alaskans over the internet but may not have a physical presence in the state. Some of the money raised by the tax change would have gone toward reading programs in public schools.

After the vote, House Speaker Bryce Edgmon, a Dillingham independent, said the debate over the bill illustrated how difficult it would be for lawmakers to agree on ways to raise new revenue as the state deals with a fiscal crunch.

“I’d also say it’s a preview of the debate that we’re going to undergo on a fiscal plan,” he said.

Some Republicans who voted against the override said they were concerned that the bill could increase costs for Alaskans, including Big Lake Republican Rep. Kevin McCabe.

“It’s disingenuous to think that we are not going to pay for this tax one way or the other,” he said.

Supporters of the bill rejected McCabe’s characterization, saying that the bill would simply give Alaska a share of similar taxes companies already pay in other states.

Sen. Bill Wielechowski, an Anchorage Democrat who championed the bill last year, said the idea that the bill would raise consumer costs was “wildly inaccurate.”

“In fact, there’s been research on this,” he said. “The National Bureau of Economic Research did a working paper titled Corporate Taxes and Retail Prices, and found null — zero — effects on prices for firms subject to a single sales factor.”

Gov. Mike Dunleavy said Wednesday that he planned to introduce a temporary sales tax as part of a larger fiscal plan. Wielechowski said the corporate income tax change was a better option.

“How dare we go to Alaskans and say, ‘We want to tax you. We want to take your dividend,’ before we’re going to tax collect revenue from tech billionaires,” he said. “Really? Is that where we’re going with this?”

Some lawmakers who voted against overriding the bill said they supported the law in concept, including Fairbanks Republican Rep. Will Stapp, who voted for the bill when it passed in May.

But he said the complexity of the tax change— and the fact that the bill would take effect immediately if the veto was overridden — gave him pause.

“(If) you vote to override this bill, Mr. Speaker, you’re going to create a new type of corporate tax structure for people that there’s no regulatory guidance on how to pay,” Stapp said. “I would argue we probably shouldn’t do that.”

Wielechowski said he was confident the state would have been able to put out regulations before taxes would be due in 2027.

Even so, Stapp said he planned to introduce a new version of the bill this session addressing that and several more technical objections he raised on the floor.

“There are a lot of questions with the bill that we should probably know the answer to,” he said.

An Alaska Superior Court judge has ruled that a state law limiting live shows at breweries, distilleries and wineries in Alaska is an unconstitutional violation of the First Amendment and the Alaska Constitution’s protections for free speech.

Judge Adolf Zeman issued his decision Wednesday in a two-year-old lawsuit filed by three alcohol manufacturers against the state of Alaska’s alcohol regulator two years ago.

“The speech restrictions fail the tests of strict and intermediate scrutiny, and such suppression of speech by the state cannot stand,” Zeman wrote at the conclusion of his 25-page order.

Until 2022, alcohol manufacturers were prohibited from having entertainment — including TVs, dancing, games and live music — on site. That year, as part of a sweeping modernization of the state’s alcohol laws, breweries, distilleries and wineries were allowed up to four live events per year if approved by the Alaska Alcohol and Marijuana Control Office, the state regulator.

Bars continued to be allowed an unlimited number of live events without permit; the difference in limits was billed as a political compromise necessary for the reform to pass the Legislature and become law.

Three companies — Zip Kombucha, Sweetgale Meadworks and Cider House, and Grace Ridge Brewing Company — filed suit to overturn the four-event limit, raising free-speech and equal-protection claims.

They were represented in court by a national group, the Pacific Legal Foundation. While the plaintiffs eventually dropped the equal-protection argument, the free-speech debate continued through written arguments.

Zeman ultimately concluded that the state failed to show how restricting live entertainment at breweries and distilleries, but not bars, would protect public health or safety.

“This court recognized that the challenged speech restrictions were once a critical piece of a grand compromise … however, political compromise is not recognized as a substantial government interest for the purposes of restricting speech under the First Amendment. Neither is the codification of preference for one industry actor over another,” he wrote.

While Zeman overturned a law limiting live entertainment, he upheld a law forbidding breweries, distilleries and wineries from having pool tables, dartboards and similar games, “because they are not speech.”

He also gave nodding approval to a law that restricts brewery, distillery and winery operating hours and serving sizes to less than what’s allowed for bars.

“The Legislature has, and can further address public health and safety risks associated with alcohol consumption in breweries and wineries by limiting the amount of product that can be served, the hours during which they can operate, or by reducing the cap for the number of brewery or winery licenses allowed in a given community,” he wrote.

Alaska Cabaret, Hotel, Restaurant & Retailers Association, or CHARR, a trade group representing all kinds of alcohol retailers — including bars and package stores — did not return a request for comment before the reporting deadline for this article.

An appeal to the Alaska Supreme Court is possible by either side. Representatives of the Alaska Alcohol and Marijuana Control Office and the Alaska Department of Law said those agencies were still analyzing the decision.

“AMCO does not have an opinion on the ruling and is discussing the matter with agency legal counsel,” said Jenae Erickson, acting public information officer for the Alaska Department of Commerce, Community and Economic Development, the parent agency of AMCO. “At this time, we can’t definitively state how the order will be implemented, or what Alaskans can expect. When AMCO has appropriate guidance, an advisory notice will be released.”

Donna Matias, an attorney with Pacific Legal Foundation who represented the plaintiffs, said she is “really pleased” with the decision and said Alaska limits on live events are “actually very unusual” on a national level.

“It was a political compromise, but the legislature really never had the breweries’ First Amendment rights to use as political bargaining chips,” she said, “and I think the court in this opinion recognizes that very explicitly.”

Lee Ellis, head of the government affairs committee for the Brewers Guild of Alaska, said by phone that the guild had been pushing for a legislative solution to the issue, “but we’re happy to see those entertainment live-music restrictions are finally lifted. I think it’s a win regardless, and we look forward to offering a lot of opportunities for small-time musicians to further present their craft.”

One of those musicians is Juneau singer-songwriter Marian Call, who also works as executive director of MusicAlaska, a group devoted to boosting Alaskan musicians.

Call hosted a Christmas concert in a Juneau distillery before the end of the year, one of four events allowed at that space last year.

She said her group applauds Zeman’s ruling.

“Musicians have a superpower — we can enter an empty room and fill it with people. We create economic activity out of nothing but sound waves. Many businesses benefit from our labor, but none more than restaurants, bars, and the alcohol industry at large,” she said. “Limiting music professionals’ opportunities to work as a part of the SB9 compromise was inappropriate and, as the Superior Court has now ruled, unconstitutional, since musical performance is a form of speech.”

Call said MusicAlaska would love to see Thursday’s ruling bring more music to all kinds of venues — bars, breweries and those that don’t serve alcohol at all.

“Alaskan musicians’ desire and ability to host music events is not a limited resource,” she said, “and the more we get to work, the more Alaskans get to play.”

Juneau’s Fred Meyer store closed yet again on Wednesday amid concerns about the heavy snow load on the roof following recent record-breaking snowstorms and cold temperatures. 

The closure began Tuesday evening when shoppers reported on social media that they were evacuated from the building. 

Tiffany Sanders, a spokesperson for Fred Meyer, said the closure is “out of an abundance of caution” while staff remove snow and address building maintenance. She did not say when the store would reopen.  

The store was already closed for multiple days last week due to concerns about the weight of the snow on the roof. The Fred Meyer gas station’s awning partially collapsed last week. Now, the station is partially reopened.

The recent heavy snow and rain in the capital city have caused several collapsed roofs across towns. On Tuesday, the roof of the Bill Ray Center, an empty building on F Street downtown, collapsed under the weight of the snow. 

Other businesses in Juneau have closed their doors as well. Nugget Mall has been closed since late last week due to safety concerns. That includes stores like Petco, Sportsman’s Warehouse and Office Max. 

“We are continuing to monitor snow load daily in coordination with structural engineers and qualified contractors,” the Nugget Mall owners wrote in a social media post on Wednesday. “Safety is and will remain the priority. That includes the safety of contractors, tenants, employees, and customers.”

The state also announced on Wednesday that the building that houses Juneau’s Department of Motor Vehicles was closed due to snow load concerns.

On Tuesday night, city and tribal leaders announced a joint disaster declaration and are asking for assistance from the state with snow removal.

On Jan. 4, Bethel resident Shane Iverson said that he was shocked when he stepped up to the Alaska Airlines counter at the Anchorage airport to check in for his flight home.

“I had two kids. We each had three items to check in, so nine items. I was sitting there with a ton of boxes and luggage when they told me they were gonna have to charge me for most of it,” Iverson said.

It was a surprising bill that Iverson and some other Alaska Airlines passengers have faced while checking baggage that used to fly for free within the state. The company said that it is working to reverse an issue with its Club 49 program that has affected the baggage benefit.

That benefit is a longtime Alaska Airlines policy of allowing three free checked bags per person on flights within the state. Iverson said that maxing out on luggage is something a lot of Bethel residents do.

“That’s kind of part of the equation of your trip. If you can afford to fly in, at least you’re gonna get a little savings on your supplies that you can bring back, and the variety of things you can find,” Iverson said.

In October 2025, Alaska Airlines announced that it would be limiting the perk to Alaska residents enrolled in its Club 49 loyalty program.

For Iverson, the change seemed inconsequential. He’s a resident, and he’s been a member of the free loyalty program since it launched in 2011. But when he checked in on his phone the night before flying, the app showed that he would be charged hundreds of dollars in baggage fees.

“I was like, it’s probably just a computer snafu, pretty understandable. I’ll just go early because probably other people are going to be dealing with this too,” Iverson said.

Initially, Iverson said that he was told that he would need to re-enroll in Club 49, and that it would take a week or more to process. But after some back and forth, he said that a ticket agent agreed to waive the fees. But he said he’s still not sure what happened.

In an emailed statement on Jan. 5, Alaska Airlines spokesperson Tim Thompson confirmed that some, but not all, Club 49 members have been incorrectly charged bag fees since a new baggage policy went into effect on Jan. 3. Current Club 49 members do not need to re-enroll in the program.

Thompson said that the problem may be resolved as early as Jan. 7. Meanwhile, customers can get bag fees waived at ticket counters by showing they have Club 49 status in the mobile app, or by showing proof of Alaska residency. Club 49 members who were incorrectly charged bag fees should contact customer service for assistance.

Iverson said that he was disappointed to find that other Bethel residents affected by the error also had little idea of what to make of it.

“Who’s ever in charge of communicating really needs to do a better job. Because, you know, in rural Alaska we follow this closely. (It) really affects our lives,” Iverson said.

Meanwhile, Alaska Airlines’ new baggage policy means non-Club 49 members without other special statuses are on the hook for new fees. According to reporting by KNOM, non-members without an Atmos Rewards credit card or elite status now need to pay at least $230 to check three bags within Alaska.

On top of the three free bags, Club 49 membership offers two free checked bags for flights to and from Alaska.

Confirm enrollment in Club 49 online by opening your profile dropdown menu, clicking Account Overview, and navigating to Membership Card. On the mobile app, click the Account tab and scroll down to Atmos Rewards and member card.

Editor’s note: Shane Iverson is KYUK’s former general manager.

Update, Sunday: 

Fred Meyer reopened Sunday.

Update, Saturday 2 p.m.:

Fred Meyer remains closed. Nugget Mall is also closed due to snow accumulation.

Original story: 

It’s a new year, but Juneau residents are still digging out from four feet of snow that fell this week.

The heavy snow collapsed the roof of at least one Juneau business, and others have closed for snow removal. 

Fred Meyer closed early on Thursday and did not reopen on Friday morning. 

“Our Juneau Fred Meyer is temporarily closed to allow for snow removal and will reopen as soon as possible,” said Tiffany Sanders, a spokesperson for Fred Meyer, on Friday morning. “Thank you for your patience and understanding.”

It’s unclear when the grocery store will reopen to the public. The Fred Meyer gas station is also closed after part of its awning collapsed. 

The roof of the Juneau Shotokan Karate dojo in the Mendenhall Valley collapsed on Wednesday morning, according to Vice President of the Board Sandy Burgess. She wrote on social media that no one was inside the building at the time.

At least nine vessels and multiple boat shelters sank at Juneau’s harbors throughout the week. The city’s docks and harbors staff are working around the clock to respond to reports and are pleading with owners to check their vessels.

Harbormaster Matt Creswell said dozens of boats have had near misses.

“It’s going to be a long process with the number of boats that are currently sunk, but staff are ready for that challenge,” he said on Friday morning. “We’ll be working in earnest, starting today, raising vessels, but expect that to be a couple week process to get everything up.”

The Alaska Department of Transportation reopened Thane Road on New Year’s Day after performing avalanche mitigation that morning. Officials say the avalanche danger remains high in all neighborhoods below Mount Juneau.

According to the National Weather Service, more than 80 inches of snow fell at Juneau International Airport last month. It made December the capital city’s second snowiest month ever recorded.

As plowing and roof clearing continue throughout the community, where to put all the snow is becoming an issue. 

“The snow removal process takes a long time because we basically have to either, with snowblowers or loaders, load all that snow into dump trucks and take it away,” City Manager Katie Koester said during a press availability on Wednesday. “We’re also having challenges at the snow storage sites, just because of the tremendous amount of snow.”

No major snow is forecast to fall in Juneau until Monday. However, temperatures are expected to drop this weekend.

This post has been updated. 

With its Ferris Wheel made of K’nex and model airplanes hanging from the ceiling, the Ben Franklin store was a landmark in downtown Juneau, drawing attention from passersby, young and old. But in mid-December, it was almost empty as people came and went to see what’s left. 

After more than 50 years, the family-run shop in downtown Juneau is closing its doors. The owner of Ben Franklin said the store has been a part of the town’s history — and his own — and closing is bittersweet. 

Mike Wiley’s parents bought the building that houses the store in the 1970s. It was already called Ben Franklin, which was a nationwide general store franchise. 

“We sold everything from tennis shoes to pencils to bras and lampshades, because there was no real store where you could get those kinds of things,” he said. 

Wylie was in middle school when his family took over and he worked at the store every day after school.

“I went to Maria Drake Junior High, which is over by Harborview. Walked over after school,” he said. “Always was told, ‘You have to come here, go to work, stay out of trouble.’”

That tradition continued with his own kids.

“Our kids have worked here. We’ve had grandkids working here,” Wylie said. “We have no great-grandkids working here yet, but as of now, we still have like two grandkids working here and helping out.”

Juneau has changed a lot over the last 50 years, and Ben Franklin changed with it. Wylie said he thinks only people in their sixties and older remember the original chain these days.

Starting around the 1970s, the store adapted as tourism grew in Juneau. 

“There was maybe two or three gift shops in town, and we started carrying Alaska souvenirs,” Wylie said. “And it was the old steamships — like Canadian cruise lines and that kind of thing – that came in here.”

Wylie said he always made a point to continue selling things useful to locals too — like housewares, frames and toiletries. 

The nationwide Ben Franklin franchise was sold a few times, and declared bankruptcy in the 1990s. It folded about 10 years ago, and Juneau’s store became independent. Wylie said the last few years were tough on business, with the COVID-19 pandemic and supply chain disruptions. 

The store made it through, as it had for decades before. But now, he said it’s time to close the shop, of his own volition.  

“Basically, it’s the end of an era here,” Wylie said. “Why we’re closing up –  it’s just, it’s time for me to retire. I put 52 years in here.”

Wylie said the responsibility of running the store has been on his shoulders for so much of his life. 

“When you own a business, you’re never away from it,” he said. “And I just want freedom to not have to worry about that.”

The Wylie family announced in September they were going to close the store. It stayed open for the holiday season. There isn’t much left now, some fabric and decorations and a swordfish on the wall. 

As it empties, people have come in to share their memories of the store. Wylie said it’s bittersweet to hear them.   

“Especially when everybody comes in and says, you know, ‘Hey, I hate to see you go’ and whatnot,” he said. “And, you know, ‘We brought our kids in here when they were little kids,’ and ‘My mom dad brought us in here’ when they were little kids to purchase stuff. So that, you know, that part kind of tugs at heartstrings.”

Wylie said he plans to have a “garage sale” style sell-off of whatever is left after the holidays. And he said he’s had a couple of people interested in buying the century-old building.