Remote Seller Sales Tax Code
The Uniform Code sets “the rules” for remote sales tax collection. As jurisdictions join ARSSTC, they adopt the Uniform Code and the rules go into effect for that community.
The Alaska Remote Seller Sales Tax Commission (ARSSTC) drafted the Alaska Remote Seller Sales Tax Uniform Code (Uniform Code) in 2019. Updates to the Uniform Code were passed February 2021.
The Uniform Code is administrative in substance and tone. The Uniform Code:
- Only applies once a jurisdiction adopts the Uniform Code.
- Sets the economic threshold for businesses to register and collect sales tax for sales throughout Alaska.
- Only applies to remote sellers and distinguishes from physical presence sales tax filing.
- Establishes the requirement for a single tax filing portal.
- Establishes the requirement for a tax map lookup tool.
- Delineates the process for tax estimation and auditing of business records for adherence to sales tax collection regulations.
- Defines the penalty, interest, and fees for late filing and other violations.
- Establishes the timeframe for record retention.
- Provides definitions for applicable terminology.
Jump to a specific section of the Uniform Code:
XX.XX.010 – Interpretation – Taxability broadly construed (Pg. 4)
XX.XX.020 – Title to Collected Sales Tax Tax – receipts property of the Commission/Member (Pg. 4)
XX.XX.030 – Imposition – Rate – Remote sellers must impose sales tax
XX.XX.040 – Obligation to Collect Tax – Threshold for collection is $100,000 or 200 transactions
XX.XX.050 – No Retroactive Application – No retroactivity
XX.XX.060 – Payment and Collection – Seller must collect taxes and hold in trust
XX.XX.070 – Registration Requirement – Timing for registration if collection thresholds are met
XX.XX.080 – Tax Filing Schedule – Monthly or quarterly return filing
XX.XX.090 – Estimated Tax – Estimated tax may be assessed on non-filers
XX.XX.100 – Returns – Filing Contents – Returns include gross, nontaxable, and taxable amounts
XX.XX.110 – Refunds – Commission may issue refunds
XX.XX.120 – Amended Returns – Sellers may file amended returns
XX.XX.130 – Extension for Return – Commission may allow extensions
XX.XX.140 – Audits – Sellers subject to audit by the Commission
XX.XX.150 – Audit protest – Sellers may protest to the Commission
XX.XX.160 – Penalties/Interest for Late Filing – Sets penalties and interest for late filing
XX.XX.170 – Repayment Plans – Commission may allow payment plans
XX.XX.180 – Record Retention – Sellers must keep records for six years
XX.XX.190 – Cessation/Transfer of Business – Terms for business cessation/transfer
XX.XX.200 – Use of Information – Confidentiality of tax return information
XX.XX.210 – Violations – Terms for violations of this code
XX.XX.220 – Penalties for Violations – Penalties for violations (ranging from $25 to $500)
XX.XX.230 – Physical presence – Delineates how sellers file (locally or with Commission)
XX.XX.240 – Hold Harmless – Sellers protected for misfiling due to Commission errors
XX.XX.250 – Definitions – Common definitions
XX.XX.260 – Supplemental Definitions – Definitions that apply to exemptions used by members
Upon becoming a signatory of the ARSSTC Intergovernmental Agreement the terms are set forth as follows:
“Within one hundred twenty (120) days, adopts, by reference or otherwise, the Alaska Remote Seller Sales Tax Code in its entirety as it pertains to collection of sales tax from remote sellers and marketplace facilitators.”
The Commission has laid out a Best Practice for Code Adoption.