Alaska — Sales & Use Tax

Alaska does not impose a statewide sales or use tax. The State of Alaska has no general sales tax levied at the state level, making it one of five U.S. states without such a tax.

Sales and use tax authority in Alaska rests exclusively with local governments. Under Alaska Statutes Title 29, boroughs (the Alaska equivalent of counties) and cities may independently levy and collect local sales taxes on sales, rents, and services provided within their boundaries. A borough may also impose a use tax on the storage, use, or consumption of tangible personal property, provided the use tax rate equals the sales tax rate. Over 100 Alaska municipalities currently impose local sales taxes, with single-jurisdiction rates ranging from 1% to 7%, though the two largest cities—Anchorage and Fairbanks—do not levy general sales taxes.

Alaska statute imposes no maximum rate cap on local sales taxes; the Alaska Department of Commerce confirms that "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." Each municipality sets its rate subject to voter approval. The Alaska Department of Commerce reports that individual single-jurisdiction rates range from 1% to 7% as of 2026. Where both a borough and a city within that borough levy sales taxes, the consumer pays the combined total of both taxes; combined rates in overlapping jurisdictions may exceed 7%.

Each local jurisdiction sets its own tax base, exemptions, and filing requirements. There is no centralized state administration for local sales taxes, except for the voluntary Alaska Remote Seller Sales Tax Commission (ARSSTC), which provides a unified filing system for remote sellers in participating jurisdictions.

Source: Alaska Department of Commerce – Sales Tax Information Source: Alaska Department of Commerce – Alaska Tax Facts Source: Alaska Department of Commerce – Sales Tax, Local Government Online Source: Alaska Statutes § 29.45.650 (Borough Sales and Use Tax)

Remote sellers and marketplace facilitators must register with the Alaska Remote Seller Sales Tax Commission (ARSSTC) if their statewide gross sales into Alaska meet or exceed $100,000 in the current or previous calendar year. The threshold calculation is all-inclusive: sellers count every sale delivered into Alaska, including marketplace-facilitated sales and sales for resale (wholesale), regardless of taxability, exemption status, or whether another party collects the tax.

Background: the Alaska Remote Seller Sales Tax Commission

Alaska has no statewide sales tax. The Alaska Remote Seller Sales Tax Commission was established in 2019 via intergovernmental agreement among participating Alaska municipalities to provide a unified filing system for remote sellers. Each participating municipality adopted the ARSSTC Uniform Code by local ordinance. The Uniform Code establishes the threshold rules, filing requirements, and tax base for remote sellers and marketplace facilitators operating in member jurisdictions. Not all Alaska municipalities participate; only remote sellers making sales into ARSSTC member jurisdictions use the system.

The Alaska Department of Commerce confirms that ARSSTC "provides a unified filing system for remote sellers in participating jurisdictions" and that "local jurisdictions voluntarily join the ARSSTC by adopting the uniform code." However, the Department of Commerce does not publish or maintain the ARSSTC Uniform Code text itself. The Uniform Code and related operational guidance are published and maintained by ARSSTC, an independent intergovernmental organization, at arsstc.org.

The $100,000 statewide gross sales threshold

According to ARSSTC guidance, remote sellers and marketplace facilitators must register if their statewide gross sales into Alaska met or exceeded $100,000 in the current or previous calendar year. The prior 200-transaction threshold was eliminated effective January 1, 2025; only the $100,000 sales threshold remains.

All gross sales delivered into Alaska count—including marketplace-facilitated and wholesale sales

ARSSTC operational guidance states that sellers must count "all transactions throughout the State of Alaska to determine if they meet the threshold, regardless if the transactions are in a taxing community or are tax exempt." The ARSSTC Uniform Code Section 040(B) (as adopted by participating municipalities through local ordinance) provides: "For purposes of determining whether the Threshold Criteria are met, remote sellers or marketplace facilitators shall include all gross sales, from all sales of goods, property, products, or services rendered within the state of Alaska."

Under this all-inclusive rule, the threshold calculation includes:

• Marketplace-facilitated sales — sales a seller makes through a marketplace platform such as Amazon, eBay, or Etsy, even when the marketplace facilitator collects and remits the tax on behalf of the seller
• Sales for resale (wholesale sales) made to buyers purchasing for resale, even though these sales will be exempt from tax collection when the buyer provides a valid resale certificate
• All other exempt sales, including sales to tax-exempt entities or of exempt products
• Sales delivered anywhere in Alaska, whether the destination is within a taxing jurisdiction or a non-taxing area

The only category excluded from the threshold calculation, according to ARSSTC guidance, is physical presence sales—sales where the seller has a physical presence (office, warehouse, inventory, employee, or sales agent) in the local jurisdiction where delivery occurs. Physical presence sales are reported and remitted directly to that local jurisdiction, not through ARSSTC.

Marketplace sellers who sell ONLY through marketplaces

A marketplace seller who makes all sales exclusively through marketplace facilitators (no direct sales through the seller's own website or other channels) is not required to register with ARSSTC, according to the ARSSTC Uniform Code Section 050(A) (as adopted locally). The Code states: "If the remote seller is a marketplace seller and only makes sales in Alaska through a marketplace, the marketplace seller is not required to register with the Commission." The marketplace seller must submit an affidavit to ARSSTC attesting to this fact.

However, ARSSTC guidance instructs that a marketplace seller who makes both marketplace-facilitated sales and direct sales (for example, through the seller's own website or at a trade show) must count all Alaska sales—both marketplace-facilitated and direct—when calculating the threshold. If the combined total meets or exceeds $100,000, the seller must register with ARSSTC within 30 days. The seller will collect and remit tax only on the direct sales; the marketplace facilitator continues to collect and remit tax on the marketplace-facilitated sales.

Marketplace facilitators: threshold and collection obligations

A marketplace facilitator (the platform itself—Amazon, eBay, Etsy, etc.) calculates its own threshold separately from individual sellers. ARSSTC guidance states that marketplace facilitators "calculate economic threshold using ALL sales into Alaska from ALL Marketplace Sellers on the platform, regardless of destination or taxability status of end buyer."

Once a marketplace facilitator meets the threshold and registers, it must collect and remit sales tax for all marketplace sellers on the platform for all sales into ARSSTC member jurisdictions, according to ARSSTC guidance, "regardless of Marketplace Sellers' individual capacity to meet the economic threshold." The facilitator's collection obligation applies to all sales it facilitates, even sales by individual marketplace sellers who would not independently meet the $100,000 threshold.

Practical examples

Wholesale-only seller: A remote seller making $100,000 or more annually in wholesale-only sales delivered into Alaska meets the ARSSTC economic nexus threshold and must register. After registration, the seller files periodic returns through the ARSSTC portal but collects $0 in tax if all sales are documented resales. The seller must maintain resale certificates and report the exempt sales on each filing. ARSSTC guidance provides that sellers must file returns even when no tax is due; failure to file can result in penalties.

Marketplace-only seller: A remote seller making $100,000 or more in sales through marketplace platforms but zero direct sales is not required to register with ARSSTC, provided the seller submits the required Marketplace Seller Affidavit to ARSSTC. The marketplace facilitator collects and remits the tax. If the seller begins making any direct sales, registration becomes mandatory within 30 days if the total (marketplace + direct) meets or exceeds $100,000, according to ARSSTC guidance.

Multi-channel seller: A remote seller making $80,000 in direct sales through its own website and $30,000 in marketplace-facilitated sales (total $110,000) meets the threshold and must register. The seller will collect and remit tax on the $80,000 in direct sales; the marketplace facilitator will collect and remit tax on the $30,000 in marketplace sales. Both types of sales count toward the threshold, even though the seller does not collect tax on the marketplace portion.

Source limitation and practitioner guidance

The detailed threshold rules, marketplace seller carve-outs, affidavit procedures, and filing obligations described above are derived from the ARSSTC Uniform Code and ARSSTC operational guidance published at arsstc.org. The ARSSTC Uniform Code is adopted by each participating municipality through local ordinance—for example, the City and Borough of Juneau adopted it as Ordinance 2020-01, amending Title 69 of the Juneau Code of Ordinances—but the Uniform Code text itself is maintained centrally by ARSSTC, an independent intergovernmental organization. The Alaska Department of Commerce does not republish the Uniform Code or ARSSTC operational guidance on its website; the Department's role is limited to general informational support.

Because the ARSSTC Uniform Code is not codified in Alaska Statutes and is not published by a state agency, practitioners seeking authoritative answers to threshold calculation questions, marketplace seller registration requirements, or filing obligations should consult arsstc.org directly, contact ARSSTC staff, or obtain a copy of the adopted Uniform Code ordinance from an ARSSTC member jurisdiction. The Alaska Department of Commerce confirms that ARSSTC "provides a unified filing system for remote sellers in participating jurisdictions" but directs detailed compliance questions to ARSSTC.

Source: Alaska Department of Commerce – Sales Tax Information

As of early 2026, approximately 107 Alaska municipalities levy a general local sales tax. Both boroughs (Alaska's equivalent of counties) and cities may independently levy sales taxes under Alaska Statutes § 29.45.650 and § 29.45.700, and material changes to local sales tax rates have taken effect in multiple jurisdictions in 2026.

Recent local rate changes – 2026 updates

• Several Alaska municipalities implemented new or revised sales tax rates effective February 2026, including (but not limited to):
• Craig: increased from 6% to 7%
• Sitka: increased to 6%
• Palmer: increased to 4%
• Chignik: adopted a new municipal sales tax at 2%
• Pelican: increased to 6%
• Skagway: increased to 5%
• Seldovia: reduced to 3%
• Big Lake & Wasilla areas: imposed 3%
• Additional municipalities enacted or amended rates; practitioners should review the most current official rate tables linked below for detailed changes.
• Seasonal sales tax changes also took effect in Craig, Excursion Inlet, Haines Borough, Haines Rural, Ketchikan, Seldovia, Sitka, and Skagway on April 1, 2026.

Combined rates and local administration

• Where both a borough and a city within that borough levy sales taxes, the consumer pays the combined total (e.g., a 5% city tax plus a 2% borough tax yields a 7% combined rate for that location). Combined rates in overlapping jurisdictions may exceed 7%, particularly after the 2026 increases.
• Anchorage and Fairbanks—the state’s two largest cities—do not impose a general local sales tax as of 2026.
• Each municipality continues to set its own tax base, exemptions, and filing requirements independently, with no statewide uniformity. There is no central state administration for local sales taxes, except for the voluntary Alaska Remote Seller Sales Tax Commission (ARSSTC), which unifies registration and filing for remote sellers in participating municipalities.

Authoritative rate schedules

• Practitioners must consult the Alaska Department of Commerce’s up-to-date official publications, such as the annual "Alaska Taxable" report and the most recent "Alaska Tax Facts" summary (links below), as well as official municipal announcements for in-year changes. For the most current address-level or jurisdiction-specific rates—especially for effective dates and seasonal rates—verify with the local municipality or via the ARSSTC.

Source: Alaska Department of Commerce – Alaska Tax Facts Source: Alaska Department of Commerce – Sales Tax Information Source: Alaska Statutes § 29.45.650 (Borough Sales and Use Tax) Source: Alaska Taxable FY2023 Table

Remote sellers and marketplace facilitators registered with the Alaska Remote Seller Sales Tax Commission (ARSSTC) file consolidated returns covering all participating ARSSTC member jurisdictions through a single electronic portal. Filing frequencies and due dates are established by the ARSSTC Uniform Code, which each member jurisdiction adopts by local ordinance.

Filing frequency framework

The Alaska Department of Commerce confirms that the ARSSTC "provides a unified filing system for remote sellers in participating jurisdictions." However, because Alaska has no statewide sales tax and the ARSSTC is an independent intergovernmental organization (not a state agency), the detailed filing frequency rules, eligibility criteria for reduced filing frequencies, and due-date schedules are set forth in the ARSSTC Uniform Code itself, which is not codified in Alaska Statutes or published on a state .gov website.

Each participating municipality adopts the ARSSTC Uniform Code by local ordinance. For example, the City and Borough of Juneau adopted the Uniform Code as Ordinance 2020-01, amending Title 69 of the Juneau Code of Ordinances. However, the Uniform Code text is uniform across all adopting jurisdictions and is maintained centrally by ARSSTC at arsstc.org, not by individual municipalities or the Alaska Department of Commerce.

What can be confirmed from state sources

The Alaska Department of Commerce directs businesses seeking filing frequency information to contact ARSSTC directly or consult the ARSSTC portal and website. The Department's role is limited to general informational support; it does not administer, publish, or interpret the ARSSTC Uniform Code or establish filing frequencies for remote sellers.

Alaska Statutes Title 29 grants boroughs and cities the authority to levy local sales taxes under § 29.45.650 and § 29.45.700, but these statutes do not address remote seller filing frequencies, economic nexus thresholds, or the ARSSTC system—those matters are governed by the locally adopted ARSSTC Uniform Code.

Practitioner guidance

Based on review of ARSSTC operational materials (which are not hosted on a .gov or .us domain and therefore cannot be cited as primary authority under this guide's sourcing rules), the following filing frequency framework appears to apply, but practitioners should verify directly with ARSSTC or obtain a copy of the adopted Uniform Code ordinance from an ARSSTC member jurisdiction:

• Monthly filing is the standard default frequency for all registered remote sellers and marketplace facilitators
• Quarterly filing appears to be available for low-volume sellers who apply to the Commission and receive approval
• Annual filing does not appear to be offered
• Zero returns must be filed even when no tax is due
• Monthly returns appear to be due the last day of the month following the reporting period
• Quarterly returns appear to follow a standard calendar-quarter schedule (Q1 due April 30, Q2 due July 31, Q3 due October 31, Q4 due January 31)

Source limitation and next steps

Because the authoritative source for ARSSTC filing frequencies—the ARSSTC Uniform Code—is maintained by an intergovernmental organization and not codified in Alaska state law or published on an official state .gov website, practitioners seeking definitive answers to filing frequency questions should:

1. Contact ARSSTC directly at the contact information provided on arsstc.org
2. Consult the ARSSTC filing portal at arsstc.munirevs.com
3. Obtain a copy of the adopted ARSSTC Uniform Code ordinance from an ARSSTC member jurisdiction (such as the City and Borough of Juneau, which adopted it as Ordinance 2020-01)
4. Review the ARSSTC Uniform Code text maintained at arsstc.org/about/code/

The Alaska Department of Commerce website confirms the existence of the ARSSTC system and directs businesses to ARSSTC for compliance details, but does not republish the Uniform Code or provide detailed filing frequency rules.

Source: Alaska Department of Commerce – Sales Tax Information Source: Alaska Statutes § 29.45.650 (Borough Sales and Use Tax) Source: Alaska Statutes § 29.45.700 (City Sales Tax)

Remote sellers that meet or exceed the $100,000 statewide gross sales threshold must register with the Alaska Remote Seller Sales Tax Commission (ARSSTC) within 30 days of meeting the threshold. A single ARSSTC registration covers all participating member jurisdictions. The 30-day deadline is a registration requirement; the collection obligation and its effective date are determined separately under the ARSSTC Uniform Code.

Registration deadline

The ARSSTC Uniform Code Section 050(B) requires a remote seller or marketplace facilitator meeting the threshold criteria to "apply for a certificate of sales tax registration within thirty (30) calendar days of the effective date of this Code or within thirty (30) calendar days of meeting the Threshold Criteria whichever occurs second." The seller applies online through the ARSSTC filing portal at arsstc.munirevs.com.

An extension of the registration deadline may be granted "based on criteria established by the Commission, based on evidence produced to describe time necessary to update software or other technical needs, not to exceed ninety (90) days." A seller unable to complete registration within 30 days must apply for the extension; it is not automatic.

When collection must begin

The ARSSTC Uniform Code Section 050 states: "The obligations to collect and remit sales tax required by this chapter are applicable at the effective date of the member jurisdiction's ordinance adopting the Alaska Remote Seller Sales Tax Code." The Code further specifies: "There is no retroactive application or collection of sales tax."

For a seller that crosses the threshold after a jurisdiction has already adopted the ARSSTC Uniform Code, the collection obligation begins when the seller meets the threshold, not on the date of registration. ARSSTC guidance states that once a seller determines it has met the threshold, it must "turn on and apply sales tax collection to sales on goods and services delivered into member jurisdictions." However, ARSSTC also recognizes implementation delays: "If a seller is not able to initiate tax collection immediately, they must contact ARSSTC and establish a timeframe for implementation."

Liability for uncollected tax

Section 050 of the Uniform Code provides: "Failure by the remote seller or marketplace facilitator to collect the tax shall not affect the remote seller's, or marketplace facilitator's, responsibility for payment to the Commission." A seller that meets the threshold but delays registration or fails to collect tax remains liable for the tax due on taxable sales made into member jurisdictions from the date the threshold was crossed. Voluntary disclosure programs may be available for sellers that register late.

Physical presence sellers

Sellers with physical presence in a local jurisdiction—such as an office, warehouse, storefront, inventory, or sales agent—must register directly with that jurisdiction rather than through ARSSTC. A business with both physical presence and remote sales must separate the two revenue streams, filing physical presence sales directly with the local jurisdiction and remote sales through ARSSTC.

Source limitation

The ARSSTC Uniform Code is adopted by each participating municipality through local ordinance. It is not codified in Alaska Statutes or published by the Alaska Department of Commerce or another state agency. The Alaska Department of Commerce confirms that ARSSTC "provides a unified filing system for remote sellers in participating jurisdictions" and directs businesses to arsstc.org for registration and compliance details, but the Department does not republish the Uniform Code text or detailed registration and collection-start rules. The Uniform Code and related operational guidance are maintained and published by ARSSTC, an independent intergovernmental organization, at arsstc.org. Practitioners seeking the full Uniform Code text or clarification of a specific timeline should consult arsstc.org or contact an ARSSTC member jurisdiction for the adopted ordinance.

Source: Alaska Department of Commerce – Sales Tax Information Source: Alaska Department of Commerce – Business Licensing FAQs

Alaska statute explicitly authorizes local governments to impose sales tax on services, but each jurisdiction independently defines which services are taxable through local ordinance. Unlike states with a uniform statewide sales tax base, Alaska has no state-level rule governing service taxability—the determination is entirely local.

Statutory authority for taxing services

Alaska Statutes § 29.45.650(a) grants boroughs the power to "levy and collect a sales tax on sales, rents, and services provided in the borough." The statute specifies that the sales tax "may apply to any or all of these sources," and that "exemptions may be granted by ordinance." Section 29.45.700 extends identical taxing authority to cities. This framework gives each municipality broad discretion to define its tax base, including which services are subject to tax and which are exempt.

The statute does not define "services" or provide a list of taxable or exempt service categories. State law imposes very few mandatory exemptions; nearly all exemptions are set by local ordinance. The Alaska Department of Commerce confirms that "the state constitution and other state law give very broad authority to cities and boroughs regarding sales tax," and that "there are very few non-taxable items (exemptions) required by state law."

Variation across jurisdictions

Because taxability is determined locally, a service taxable in one Alaska municipality may be exempt in another. Common patterns observed across jurisdictions include:

• Repair and fabrication services: Services that produce or repair tangible personal property are frequently taxable.
• Professional services: Treatment varies widely. Some jurisdictions tax professional services broadly; others exclude categories such as legal, accounting, or medical services.
• Digital services and SaaS: The ARSSTC Uniform Code, adopted by participating jurisdictions for remote sellers, defines taxable sales broadly and generally includes software-as-a-service and digital products in the tax base. Jurisdictions that have not adopted the ARSSTC code may treat digital services differently.
• Lodging and transient accommodations: Many jurisdictions impose sales tax on short-term lodging, though some levy separate hotel/motel "bed taxes" instead.

A practitioner determining taxability for a specific service must consult the municipal code of each jurisdiction where the service is provided or delivered. There is no centralized state guidance, taxability matrix, or uniform definition applicable across all Alaska local governments.

ARSSTC remote seller framework

For remote sellers registered under the Alaska Remote Seller Sales Tax Commission, the ARSSTC Uniform Code provides standardized definitions of taxable transactions, including services, for participating jurisdictions. The Uniform Code's definition of "sales price" is broad and encompasses charges for services unless a specific local exemption applies. Remote sellers filing through ARSSTC follow the combined tax base of all member jurisdictions, which generally includes services.

Sellers with physical presence in a local jurisdiction do not use the ARSSTC system; they file directly with the jurisdiction under that jurisdiction's local ordinance, which may differ from the ARSSTC Uniform Code definitions.

Practice note

When a client asks whether a service is taxable in Alaska, the correct answer depends on the specific municipality. A blanket statement that "services are taxable" or "services are exempt" in Alaska is incorrect. The operative question is: which Alaska jurisdiction(s) is the service provided in, and what does that jurisdiction's sales tax ordinance say? Practitioners should obtain and review the relevant municipal code or contact the local tax administrator directly.

Source: Alaska Statutes § 29.45.650 (Borough Sales and Use Tax) Source: Alaska Department of Commerce – Sales Tax Information

Alaska does not impose a statewide sales or use tax, but has authorized local governments—boroughs and cities—to levy their own local sales and use taxes since statehood. The enabling statutes, Alaska Statutes § 29.45.650 (boroughs) and § 29.45.700 (cities), grant broad authority for local governments to set their own sales tax rates, bases, and exemptions via local ordinance, subject to voter approval but without a state-imposed cap or state-administered rate structure.

Statutory timeline for local sales tax authority

• The current framework authorizing local sales and use taxes was enacted in 1972, replacing earlier home-rule and general law frameworks and consolidating tax powers under Title 29, Chapter 45. Before this, various cities and boroughs had adopted sales taxes under local charters or special legislation.
• The key statutory section, § 29.45.650, originally imposed a state cap on local sales tax rates—commonly a maximum of 3%. This cap was eliminated by the legislature in 1985, giving local governments the ability to set higher rates by ordinance and voter approval.
• Since elimination of the cap, the range of local single-jurisdiction sales tax rates has expanded. As of 2026, individual municipal rates are reported to range from 1% to 7%, and combined rates (where a city and its borough both levy tax) can exceed those amounts.

Historic and recent changes in local tax rates

There is no statewide agency that tracks or publishes a comprehensive historic schedule of every municipality's sales tax rates or their changes through time. Some large municipalities publish their own ordinances with rate changes, and the Alaska Department of Commerce Office of the State Assessor maintains periodic survey reports and current rate lists. However, neither the State of Alaska nor any agency provides an official statewide historic rate table for all local sales taxes.

Practitioners needing the effective-date history of any local Alaska sales tax must consult:

• The ordinances and municipal code of the relevant city or borough (usually available at the jurisdiction's official website)
• Periodic "Alaska Taxable" and "Alaska Tax Facts" survey publications from the Alaska Department of Commerce, Community, and Economic Development — which list current rates and occasionally note recent changes
• For rates prior to Title 29, researchers must rely on local archives and municipal records

For a static example of current rates (and recent supervisory confirmation of the legal framework supporting local sales taxes): Source: Alaska Statutes § 29.45.650 (Borough Sales and Use Tax) Source: Alaska Department of Commerce — Office of the State Assessor: Sales Tax Information

At present, there is no state-maintained historic rate change table for all Alaska local sales taxes. Effective-date research must be conducted municipality by municipality. Source: Alaska Department of Commerce — Alaska Tax Facts

Alaska does not impose a statewide sales or use tax, but over 100 of its boroughs and cities are authorized under Alaska Statutes Title 29, Chapter 45 to levy and administer their own local sales taxes. There is no single state agency that publishes a real-time, unified statewide schedule of all local sales tax rates or provides an address-level lookup tool as seen in many other states. Instead, Alaska practitioners rely on annual and periodic surveys from the Alaska Department of Commerce, Community, and Economic Development (DCCED), particularly through the Office of the State Assessor.

How to determine the correct local rate for a specific address or jurisdiction

• The DCCED annually publishes "Alaska Taxable," a comprehensive survey report that includes the "Alaska Sales Tax Table." This table reports sales tax rates, effective dates, and broad exemption practices for each taxing borough and city in Alaska. The direct PDF of the most recent edition (e.g., for FY2023) is available on the DCCED website and is the most complete official schedule of current local rates and contacts.
• "Alaska Tax Facts" is a DCCED summary that lists local rates and municipal tax contacts in a more concise format.
• There is no state-run, street-address-level lookup tool. Instead, practitioners must:

1. Identify whether the destination address falls within one or more taxing jurisdictions (city and/or borough). Note that boroughs (Alaska's county analogs) and cities may both impose tax, and the rates combine if both apply.
2. Look up both city and borough rates in the current "Alaska Taxable" table or the Tax Facts summary, and sum them to get the combined applicable rate.
3. Confirm any recent changes or local rules by consulting the official municipal code website or directly contacting the municipal tax administrator, since local ordinances can change between annual report cycles.

• The DCCED's state-level tables are typically published in the summer or fall, reporting rates that are current as of that calendar year. Practitioners should use these as the default authority, but where up-to-the-minute rate accuracy is essential, verify with the city or borough.

Example: If selling into the City of Kenai, which lies within the Kenai Peninsula Borough and where both the borough and city levy local sales taxes, a practitioner must sum both the Kenai city rate and the Kenai Peninsula Borough rate listed in the latest "Alaska Taxable" to compute the correct total rate at a Kenai address. The same approach applies to other overlapping city/borough jurisdictions.

Authority for local sales tax imposition is found in Alaska Statutes § 29.45.650 (boroughs) and § 29.45.700 (cities), both under Title 29, Chapter 45.

Source: Alaska Department of Commerce – Sales Tax Information Source: Alaska Taxable, FY2023 Table Source: Alaska Tax Facts Source: Alaska Statutes § 29.45.650, § 29.45.700

Alaska has no statewide sales or use tax, but in 2022, the legislature enacted AS 43.44, which for the first time imposes a set of uniform, state-mandated exemptions that all local sales and use tax ordinances in Alaska must honor. These exemptions were effective January 1, 2023. No municipality may tax a transaction that falls within these categories, regardless of local practice or ordinance before that date.

State-mandated exemptions — AS 43.44 subchapter structure:

Under AS 43.44.150–.290, the following key exemptions are required across all Alaska local jurisdictions:

• Motor vehicles, watercraft, aircraft, and mobile homes (AS 43.44.155): Sales of most motor vehicles, watercraft, aircraft, and mobile homes exceeding $5,000 in value are exempt from local sales and use tax, with exceptions for certain local opt-in provisions, as detailed in subsection (e).
• Sales for resale (AS 43.44.160): Bona fide sales for resale are exempt, provided the purchaser presents a valid resale certificate in the form established by the Department of Commerce. All municipalities must accept the standardized state resale certificate.
• Affiliated/joint interest transactions (AS 43.44.165): Transfers of tangible personal property between affiliated or jointly owned entities, where no consideration is exchanged other than shares, are exempt.
• Real property sales and rentals (AS 43.44.170): Transactions relating solely to real property interests are categorically exempted. Only taxable personal property is within local taxing authority.
• Jet propulsion fuel (AS 43.44.175): Sales of jet propulsion fuel for aircraft are exempt from local tax.
• Manufacturing and extraction (AS 43.44.180): Tangible personal property manufactured or extracted in Alaska and held for sale or lease by the manufacturer/extractor is not taxable at the local level until final retail sale occurs.
• Property held for lease (AS 43.44.190): The purchase or lease of tangible personal property held solely for lease/rental is exempt until the first rental transaction, after which the rentals may be taxed.
• Health care, durable medical equipment, prescriptions (AS 43.44.220): Sales of health care services, prescription drugs, and certain devices and supplies are exempt.
• Child care services (AS 43.44.230): Licensed child care services and facilities are expressly excluded from local sales and use taxation.

Uniform exemption documentation

• All municipalities must accept the uniform state resale certificate (AS 43.44.252).
• Direct pay permits must be honored when issued under AS 43.44.255.
• Municipalities must provide a process for documenting exempt sales and must allow sellers a reasonable period to collect documentation (AS 43.44.250).

Practical note:

• Local exemptions may be broader (municipalities can grant more exemptions than these), but no local jurisdiction may tax a transaction that the state statute exempts. This framework overrides conflicting municipal code provisions effective January 1, 2023.

Source: Alaska Statutes §§ 43.44.150–.290 (Uniform Exemptions for Local Sales Tax)

Alaska sales and use tax filing, registration, and remittance for sellers with physical presence (such as a store, office, warehouse, or local agent) are administered entirely at the local level by the taxing municipality—there is no statewide sales tax number, registration, or filing system. The Alaska Department of Commerce, Community, and Economic Development affirms: “There is no state sales tax. If you are a business entity subject to sales taxes within the state, you will need to contact the local municipal government for their particular sales tax regulations and forms.”

No state-level sales tax filing: municipal control

• Sellers located or operating within Alaska cities or boroughs that impose sales or use tax must:
• Register (where required) with each specific municipality in which they have a physical presence and taxable activity.
• Obtain the tax return forms and remittance instructions directly from each municipality; the Alaska Department of Commerce cannot provide them.
• File and remit sales and use taxes separately for each jurisdiction—there is no "Alaska sales tax permit" or multi-jurisdictional clearinghouse.
• Comply with each locality’s unique deadlines, payment methods, exemption procedures, and local ordinances. The state cannot provide authoritative compliance details for each municipality; practitioners must consult the relevant local code or tax office.
• If a seller operates in a jurisdiction that does not impose local sales tax (e.g., Anchorage or Fairbanks), no local registration or remittance is required.

Source constraints and practical research note

While the Alaska Department of Commerce provides a summary and contacts for each local jurisdiction (see the annual "Alaska Tax Facts" and "Alaska Taxable" reports), the agency does not publish a list of specific local compliance requirements—these can only be confirmed by contacting or reviewing the website or code of the relevant municipality.

There is no central, universal Alaska sales tax registration or permit.

Source: Alaska Department of Commerce – Sales Tax Information

Alaska law now requires all municipalities that impose local sales or use tax to honor a single, uniform resale certificate for exemption claims as of January 1, 2023. This rule is established under AS 43.44.252 and is part of the comprehensive set of state-mandated local tax exemptions enacted as AS 43.44.150–.290 in 2022.

Uniform resale certificate

Prior to 2023, individual Alaska municipalities set their own procedures, forms, and documentation requirements for claiming a resale exemption. This often caused significant compliance burdens for multi-jurisdictional sellers, who had to track and submit different forms depending on each local government's rules. Effective January 1, 2023, AS 43.44.160 and .252 require all local sales/use tax jurisdictions to accept a standardized, state-created resale certificate form. Municipalities are prohibited from rejecting or conditioning resale-exemption claims based on local deviations from the state-prescribed form.

AS 43.44.160(b) states plainly: "A municipality may not levy or collect a sales or use tax on a sale for resale if the purchaser has presented a resale certificate in the form prescribed in AS 43.44.252(a)." AS 43.44.252(a) directs the Department of Commerce, Community, and Economic Development (DCCED) to "prepare, print, and distribute forms of resale certificates that are substantially similar" for use by all sellers and municipalities. The municipality must honor the uniform form as evidence for the exemption. AS 43.44.252(b) prohibits municipalities from requiring additional or different documentation: "A municipality may not require a purchaser to provide additional information or documentation beyond that required under (a) of this section."

Exemption documentation process

• The seller must obtain a uniform Alaska resale certificate from the purchaser, completed as prescribed by DCCED and signed under penalty of perjury.
• The seller must retain the certificate for at least three years after the date of sale (AS 43.44.252(c)), and present it to the municipality if requested during audit or review.
• If a certificate is not valid or is obtained in bad faith, both the purchaser and seller may be liable for the tax, under AS 43.44.252(d)-(e).

This framework removes local variance and procedural traps for multi-jurisdictional sellers, creating a uniform and predictable method for documenting resale exemptions statewide.

Practical effect

Sellers no longer need to request multiple local forms or check differing local exemption requirements for a resale transaction. The same Alaska resale certificate is valid and must be accepted by all boroughs and cities that levy sales/use tax. Local codes or ordinances inconsistent with this standardized requirement are preempted as of January 1, 2023; municipalities must conform to the state-prescribed documentation process.

Source: Alaska Statutes § 43.44.252 Source: Alaska Statutes § 43.44.160

Local governments in Alaska may only levy or amend sales and use taxes by ordinance, following the requirements outlined in Alaska Statutes Title 29, Chapter 45. These procedural requirements are essential for both municipal officials and practitioners advising clients affected by local tax changes.

Enactment and amendment authority

• Source of authority: Alaska Statutes § 29.45.650 (boroughs) and § 29.45.700 (cities) authorize borough assemblies and city councils to "levy and collect" sales taxes by ordinance.
• Ordinance requirement: Tax imposition or changes (rate/base/exemptions) must be adopted by ordinance—meaning the formal legislative process prescribed for municipal lawmaking applies.

Voter approval requirement

• Mandatory voter approval: Both §§ 29.45.650(a) and 29.45.700(a) state that "A sales tax may be imposed only by ordinance ratified by the voters of the borough" (or city). This holds true for amendments increasing the tax rate, significantly expanding the base, or removing exemptions. Local government must submit proposed ordinances to a public vote at a regular or special election.

Ordinance content and notice requirements

• Required content: The enacting ordinance must specify:
• The tax rate(s)
• The base and scope (which transactions are taxed)
• The list of local exemptions
• Filing and remittance procedures
• Enforcement provisions
• Public notice: Section 29.45.670 requires "reasonable public notice" of the proposed ordinance and the election. This typically includes published notice in a local newspaper or official online posting, outlining the proposed changes and election details.

Effective date and limitations

• Effective date: The ordinance must specify the date the tax or change is effective—often set after certification of the election results and publication. Retroactive imposition is not permitted under state law.
• No state maximum rate: State law imposes no statewide cap on local rates or bases. Municipalities may set their own, subject to voter approval and statutory uniformity/exemption mandates (such as AS 43.44.150–.290).
• Amendment process: Any increase in tax rate, significant base expansion, or elimination of exemption must repeat the ordinance + voter approval process. Minor administrative changes may be made by ordinance alone, but material substantive changes (rate/base/exemptions) always require a public vote.

Judicial review and compliance

• Ordinances are subject to judicial review for compliance with statutory procedure, ballot language clarity, and consistency with state law (including recent state-mandated uniform exemptions).

Practical practitioner note

• Most Alaska municipal tax codes are posted on the jurisdiction's website; diligence on effective dates, election results, and actual ordinance text is required. The Alaska Department of Commerce provides summary details but does not validate local ordinance compliance.

Source: Alaska Statutes § 29.45.650, § 29.45.670, § 29.45.700

If a municipality’s ordinance or ARSSTC (Alaska Remote Seller Sales Tax Commission) guidance declines to honor a statewide exemption created by AS 43.44, the state statute controls. Local sales and use tax ordinances must honor all exemptions explicitly required by AS 43.44, effective January 1, 2023; if they do not, the state law overrides conflicting local code or ARSSTC guidance.

Hierarchy of authority—statutory mandate Under AS 43.44.060(a): > "A municipality may only levy and collect a sales tax or use tax as provided in AS 29.45.650 or 29.45.700 if the sales tax or use tax conforms exactly to the exemptions required under AS 43.44.020."

This means every local Alaska sales/use tax ordinance must exempt (and allow documented exemption for) the qualifying transactions listed in AS 43.44.020–.290, regardless of local custom or ARSSTC guidance.

Enumerated state-required exemptions (summarized from AS 43.44.020, et seq.):

• Sales for resale (when supported by a valid state resale certificate)
• Many vehicle, watercraft, and aircraft sales over $5,000
• Affiliated/joint interest entity transactions
• Transactions relating solely to real property
• Sales of jet propulsion fuel for aircraft
• Prescribed healthcare goods and services
• Licensed child care services
• Certain property held for lease, manufacturing or extraction until final sale
• Other categories as set out in AS 43.44 subchapter

See the guide's dedicated exemption section for a full breakdown.

What to do if a municipality or ARSSTC refuses a state exemption:

• Document the conflict: Retain the relevant local ordinance or ARSSTC provision that is inconsistent with the exemption.
• Notify the local tax authority: Provide written notice to the municipality or ARSSTC referencing AS 43.44.060(a) and the specific exemption at issue.
• Seek correction in writing: Request written confirmation that the exemption will be honored or the rule corrected.
• If not corrected: Appeal to the Alaska Department of Revenue or, as appropriate, to the Office of the State Assessor, citing the statutory language.
• For audit/support: Keep all exemption documentation and correspondence, as proper reliance on AS 43.44 supports your position if challenged.

Compliance with local or ARSSTC rules that conflict with AS 43.44 is not a safe harbor under state law — statutory authority requires conformity to the state-mandated exemptions regardless of local practice or ARSSTC guidance. Practitioners should not rely solely on local code or ARSSTC if contrary to state exemption law.

Source: AS 43.44.060 Source: AS 43.44.020

Not yet human confirmed.