Alaska does not have a state-level sales and use tax at the time of this writing. However, in addition to other Alaska business taxes, each municipality has the authority to assess sales taxes on products and services sold in that locale. Alaska businesses need to learn how to get a sales tax permit for these local municipalities and remit sales tax on the local level.
Do any necessary state business registrations with the Alaska Department of Commerce, Community and Economic Development. This is the Alaska state agency where the following types of Alaska businesses must register: corporations, limited liability companies, cooperatives, limited partnerships and limited liability partnerships. Once you have registered, then you can use that business name for all of your other Alaska business registration requirements.
Obtain an employer identification number if the Internal Revenue Service requires it of your Alaska business. This depends largely on whether you have employees, but all nonprofits need to get an EIN number from the IRS. Sellers of certain classes of products, like tobacco, also must always get an EIN. Visit the IRS.gov website to see if you need an EIN business tax number. You can run a search at the top of every page.
As of November 2010, there is no Alaska sales tax. Likewise, there is not Alaska use tax. However, you may still have to collect Alaska municipal sales tax. Some municipalities in Alaska impose a sales tax on transactions made in that Alaska municipality.
To find whether your Alaska business must collect sales or use tax, of course you need to know whether the municipalities where you sell products of services impose the tax. Download the latest “Alaska Taxable” document to get information about Alaska sales tax. This annual document tells you which Alaska areas impose the tax and the sales tax rate in those Alaska municipalities. You can find this “Alaska Taxable” document on the Alaska Office of the State Assessor website at commerce.state.ak.us/dca/osa/taxfacts.htm.
Once you have determined that your municipality does assess sales tax, then you need to register to get a local Alaska sales tax permit. Because there is no state form for sales tax, then you need to contact each municipality that levies sales taxes in Alaska to find out how to register. Follow the instructions to register for the local sales tax and other business taxes for each applicable Alaska municipality. You will then get a sales tax ID number for that locale.
Ask the local tax office about sales tax exemptions. If Alaska had a sales tax like most states, then it would likely give Alaska sales tax exemptions to resellers, farmers, construction contractors, etc. Thus, your Alaska municipality might also provide such tax exemptions. Also check for the current sales tax rate to make sure you charge the latest Alaska sales tax rate.
Get all necessary tax return forms for sales and use tax from the local tax offices. Of course, there is no Alaska sales tax forms, returns or other documents at the time of this writing.
Alaska Tax Facts