Summary:
Destination Based Sales Tax.
No state-wide General Sales Tax Rate but some areas levy local taxes.
Over $100,000 in sales OR 200 transactions during the current or prior calendar year.
Transactions made through a registered marketplace facilitator excluded: No.
Transactions made to a reseller excluded: No.
Limited to certain transaction types: No.
Services: Not taxable.
Digital products are generally taxable in local jurisdictions that have instituted a sales tax.
SaaS Products: Taxable
When To Register: The first day of the month after 30 days of being adopted by a city or borough. This refers to when a business must start collecting and remitting sales tax in municipalities (cities or boroughs) that have chosen to adopt local sales tax laws.
Here’s what it means step by step:
Adoption by City or Borough: In Alaska, there is no state-wide sales tax, but certain cities or boroughs may choose to implement their own local sales taxes. When a municipality adopts or updates sales tax rules, they set a timeline for when these rules apply to businesses.
30 Days After Adoption: After a city or borough adopts a sales tax ordinance or law, there is typically a 30-day waiting period for businesses to prepare for compliance. During this period, businesses may need to register for the local sales tax, adjust their systems to collect the tax, and become familiar with reporting requirements.
First Day of the Month: Once the 30-day waiting period has passed, businesses are required to start collecting sales tax on the first day of the following month.
Example:
- A borough adopts a sales tax on March 15th.
- The 30-day period ends on April 14th.
- The business must start collecting and remitting sales tax from May 1st onward.