City and Borough of SITKA Alaska BUSINESS VISITORS GOVERNMENT DEPARTMENTS FAQS Business / Doing Business Doing Business The City and Borough of Sitka welcomes and encourages new business activity as well as supporting our current businesses. The Tax Office staff are available to serve you Monday through Friday from 10:00 a.m. – 4:00 p.m. (with the exception of recognized holidays) on the first floor of City Hall at 100 Lincoln Street Sitka, Alaska. Tax Specialist 907-747-1840 tax@cityofsitka.org The seasonal tax rate of 5% started October 1st. Payments made outside of the Utility Office hours can be left in the drop box outside of the Utility Office or the drop box outside of City Hall. Quarterly sales tax payments and returns will be considered to be submitted on time if received (or postmarked) by 4:45 p.m. on the last day of the month following the end of the quarter (April 30 for quarter 1, July 31 for quarter 2, October 31 for quarter 3, and January 31 for quarter 4). Collecting and Filing Sales Tax Every sale which is made within the City and Borough of Sitka, unless explicitly exempted by Sitka General Code Chapter 4.09.100, or subsequent ordinance, shall be presumed to be subject to the city sales tax of 5% or 6% (seasonally) imposed. This requires by law any person or business to register with the City of Sitka Tax Office before making sales, rendering services, or providing rentals within city limits. Please Note: The City and Borough of Sitka also enacts a 6% transient room tax, as well as, a 4% driver’s facility charge and a $10/box fish box tax to be collected and remitted by persons or business conducting sale. Business Licenses & Permits In addition to registering your business with the City of Sitka to collect and remit taxes, a business license issued by the State of Alaska is required and may be obtained online at https://www.commerce.alaska.gov/web/cbpl/businesslicensing.aspx If you plan to conduct business as a taxi and/or tour operator, you are required to obtain yearly permits issued by Sitka Police Department. Please call 907-747-3245 for questions. Tax Forms/Registrations Registrations are available in the Tax Office as well as online. Below are forms frequently requested: New/Reopen Business Registration Application Exempt Sales Record Exempt Sales All sales made within the City and Borough of Sitka are considered taxable unless specifically exempted. All possible exemptions from collection of sales tax are listed in Sitka General Code 4.09.100. Common exemptions include: Wholesale Registered businesses who do not wish to pay sales tax on items purchased for resale must complete an annual Resale Exemption Application and submit the form and application fee to obtain a resale exemption card. This card must be presented to the retailer and the item wishing to be tax exempt must fall under the category listed on the card in order to qualify for tax exemption. The retailer must maintain this number in their records to justify their exemptions on the sales tax return. Government agencies are tax exempt from paying sales and bed tax. A list of Government Agencies may be found here. Please call for verification if entity is not listed. Non-profit organizations are not exempt from paying sales tax only if they are 501(c)3 and receive 50% or more government funding (grants, etc.). In addition they must apply and receive an exempt certificate (valid for 2 years) from the CBS Tax Office. Current list of exempt Non-profit organizations. Separately, 501(c)3 non-profits are exempt from collecting sales tax if they do not hold regular business hours and do not have any paid employees. These organizations however are not exempt from paying sales tax on purchases, rents, or services rendered to them. This includes churches. Senior citizens (65 and older) with a CBS-issued exemption card are exempted from paying sales tax on most items that are for personal use or consumption. Application for Senior Exemption Tax Cap for Sales Tax Exemption is only to be charged on the first $12,000.00 of a single sale or billing unit, (i.e., if you sold a piece of equipment or service for $14,000.00, you would only charge tax on the first $12,000.00). SCG 4.09.100 (n). Application for over $12,000 Tax Exemption Address City & Borough of Sitka Alaska 100 Lincoln St. Sitka, AK 99835 Phone: (907) 747-1800 City Staff Directory Follow Us