Remote Seller Sales Tax Code

A uniform, Alaska Remote Seller Sales Tax code and Supplemental Definitions was passed on January 6, 2020.

The Uniform Code is administrative in substance and tone.  It does not set sales tax rates, exemptions, or any other policy element of a local government’s current sales tax code or practice. What follows is a high-level summary of the various sections of the Uniform Code:

XX.XX.010 – Interpretation – Taxability broadly construed
XX.XX.020 – Title to Collected Sales Tax Tax – receipts property of the Commission/Member
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.