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| Taxation
and Assessment |
| Sales
Tax |
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Contents
Introduction
Frequently Asked Questions
Narrative
Additional Resources
Applicable Laws
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| Introduction Back
to Top |
| At present, the State of Alaska
does not levy a sales tax. There are, however, several municipal
governments that do. The state constitution and other state
law give very broad authority to cities and boroughs regarding
sales tax; however, a sales tax is not authorized unless an
election is held on the question and it is approved by a majority
of the voters. There are very few non-taxable
items (exemptions) required by state law. This allows a municipality
a lot of power to decide what is and is not taxable. State
law also allows
municipalities that levy a sales tax to levy a use tax, which
is a tax levied on the storage, use, or consumption of goods
in a municipality. |
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| Frequently
Asked
Questions Back
to
Top |
| Can I get the proper form
from the state to file my sales tax with the local municipality? No. In order to file your return,
you must get the form from the municipality in which you conducted
your business and owe the tax. Do I have to pay a use tax
on goods that I have already paid a sales tax on? Not necessarily. State
law requires
that if you furnish proof to the municipality that you have
paid a sales tax on the item, you will only have to pay for
the difference in the amount of the sales tax paid and the
use tax, if there is a difference. Where can I get a listing
of all municipalities that levy a sales tax? There are two places to find
that information. The Alaska
Taxable is a yearly publication that lists all
municipalities and the types of tax each levies. Alaska Taxable
also lists
the amount of taxes collected by each of these municipalities.
The information in Alaska Taxable is "dated," meaning
that it reflects the information up to a given date, usually
July 1 of the prior year. You can get more current information
from the Department of Community and Economic Development's
website: "Alaska
Community Database Online" - see "Custom
Data Queries." Can I be charged a sales
tax by both the city and the borough? It is possible. State law allows both cities
and boroughs to levy a sales tax. In many boroughs that levy a sales tax,
it is not unusual for a city within that borough to also levy a tax.
(AS 29.45.650
and AS 29.45.700). What is a use tax and how
does it work? A use tax is a tax that is
levied on goods that are bought outside the taxing authority's
jurisdiction and then brought into the jurisdiction. This
tax is designed
to discourage the purchase of products that are not subject
to a sales tax. By state law, this tax may be levied on
the
storage, use, or consumption of goods in the borough/city.
The use tax must equal the sales tax rate and is levied
only
on buyers (AS 29.45.650(b)). |
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| Narrative Back
to Top |
| There
is currently little state regulation of sales and use tax. State
law gives local governments broad authority in enacting a sales
tax ordinance and determining what is and is not taxable. At
one time there was a limit on the maximum amount a municipality
could charge for a sales tax, but that limit has been removed.
For information on what is not taxable, contact the municipality
directly. There are some exemptions spelled out in state law;
however, other than these, exemptions are a local issue. |
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| Additional
Resources Back
to
Top |
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Publications
Sample Documents and Forms Websites |
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| Applicable
Laws Back
to
Top |
State
of Alaska Constitution (See Folio
Infobase)
- Article IX, Section 1 - taxing
power
- Article X, Section 1 - provision
for maximum local self government and non-duplication of
taxing jurisdictions
- Article X, Section 2 - dedication
of taxing powers to boroughs and cities only
State Statutes
- AS 29.35.010 - general powers
and duties of municipality, authorization to levy tax and
enforce tax law
- AS 29.35.170 - assessment
and collection of tax, borough collection of city tax
- AS 29.45.650 - Borough
sales and use taxes, exemptions by ordinance, interest
on delinquent sales tax
- limitations, liens, lien priority, mandatory exemptions
- AS 29.45.670 - notice of tax, publication period, revenue sharing
requirement
- AS 29.45.670 - Referendum, adoption
and modification
- AS 29.45.680 - Combining
sales and use tax with incorporation of a borough, incorporation
subject to
passage of tax
- AS 29.45.700 - City
sales and use tax, power of levy, borough levy, borough
ordinance authorizing levy
of tax, mandatory exemptions,
- AS 29.45.710 - Combining
sales and use tax with incorporation of a second class
city, incorporation subject
to passage of tax
- AS 29.45.800-.810
- Stranded gas development contract, exemption
- AS 29.60.010 - State
revenue sharing tax equalization formula
- AS 29.60.080 - Definitions
Revised 11/10/02 |
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