Alaska Administrative Code › Title 15 - Revenue › Chapter 50 - Cigarette Tax › Article 2 - Taxation › 15 AAC 50.100 - Exemptions for military and Indian reservation sales

Current through May 31, 2024
(a) Cigarettes
				imported or acquired by a military exchange, commissary, or ship store are
				exempt from tax under this chapter if the cigarettes are sold to and for the
				sole use of authorized personnel according to current military regulations.
				Cigarettes imported or acquired by a military exchange, commissary, or ship
				store and sold to or for the use of unauthorized personnel are not exempt from
				the tax under this chapter. Cigarettes imported or acquired by independent
				contractors and sold to consumers within military installations are not exempt
				from tax under this chapter.
(b) A
				person claiming an exemption under (a) of this section for the sale of
				cigarettes directly to a military exchange, commissary, or ship store shall
				file, with a return under
				15 AAC 50.120, an exemption
				certificate for each exempt sale claimed under this section. The certificate
				must be in the form of an affidavit, signed by an authorized agent of the
				military exchange, commissary, or ship store, and contain a statement that the
				cigarettes purchased will be sold solely to and for the use of authorized
				personnel in accordance with military regulations. Accompanying the exemption
				certificate must be the invoice supporting the sale to the military exchange,
				commissary, or ship store.
(c) If
				the department determines that cigarettes sold under exemption of this section
				were sold to or for the use of unauthorized personnel, the department will
				assess the tax under this chapter to the person or entity making the
				sale.
(d) Cigarettes imported or
				acquired by an Indian operating a cigarette business within an Indian
				reservation are exempt from tax under this chapter if the cigarettes are sold
				to and for the sole use of Indians. Cigarettes imported or acquired by an
				Indian operating a cigarette business within an Indian reservation are not
				exempt from the tax under this chapter if sold to a non-Indian, and the tax
				from those nonexempt sales must be collected, reported, and remitted as
				required in (f) of this section.
(e) A person claiming an exemption under (d)
				of this section for the sale of cigarettes directly to an Indian operating a
				cigarette business within an Indian reservation shall file with a return under
				15 AAC 50.120, an exemption
				certificate for each exempt sale claimed under this section. The certificate
				must be in the form of an affidavit signed by the Indian operating the
				cigarette business within the Indian reservation, and it must contain a
				statement that tax-free cigarettes will be sold solely to and for the use of
				Indians. Accompanying the exemption certificate must be the invoice supporting
				the sale to the Indian operating the cigarette business within the Indian
				reservation.
(f) An Indian
				operating a cigarette business on an Indian reservation and making sales to
				non-Indians shall collect the tax due on sale of cigarettes from the non-Indian
				and remit the tax with a withholding report to the department. The withholding
				report must be on a form prepared by the department and must state the number
				of cigarettes sold to non-Indians and the amount of tax due on the sales to the
				non-Indians. The tax collected and the withholding report must be filed with
				the department no later than the end of the month following the month in which
				the cigarettes were sold.
(g) If
				the department determines that cigarettes sold under exemption of this section
				were sold to or for the use of non-Indians without collection, remitting, and
				reporting the tax due, the department will assess the tax under this chapter to
				the person or entity making the sale.
Authority:
AS
					 43.05.080
AS 43.50.090
AS
					 43.50.150