While there is no statewide sales tax in Alaska, locals are given wide authority to impose and collect sales tax through enacting local ordinances. Around 100 of these boroughs and cities have stood up their own sales tax requirements. In order to benefit from the 2018 Wayfair case, the taxing locals realized they needed a simpler manner of tax administration. Consequently, an intergovernmental agreement to coordinate sales tax collection and remote sales into Alaska was established and named the Alaska Remote Seller Sales Tax Commission. The Commission provides governance over a streamlined, single-level administration of sales tax collection and remittance, and supports a filing portal.
Many, but not all these localities have joined the Alaska Remote Seller Sales Tax Commission. Additional complexity is created because member governments are required to adopt a uniform local tax ordinance specifying that economic nexus with Alaska ($100,000 in gross sales or 200 separate transactions) also creates economic nexus in any participating locality. This means that 200 individual sales anywhere in Alaska automatically creates compliance requirements with all the jurisdictions that have joined the Commission.
Yet, there are benefits to the ever-increasing local participation in the Commission for retailers. Specifically, retailers may utilize their tax matrix, receive communications concerning local rate changes or seasonal changes, and have access to additional informational resources to remain compliant.
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