Alaska – House Bill 5004 Entertains State Sales and Use Tax Beginning January 1, 2018

SALT Report 3839 – Alaska appears geared up to join the Streamline Sales and Use Tax Agreement with House Bill 5004 advocating a statewide sales tax.

“This legislation would put into effect a 3% state sales and use tax effective January 1, 2018. This would be separate from and not impacted or reduced by any existing municipal sales and use taxes. Municipalities would continue to collect and administer their own sales and use taxes; the state would take over statewide collection and administration in 2022. Municipalities would be able to request the state take over administration of the local tax before that date so long as the municipality has conformed it’s tax base, exemptions, definitions, and sourcing rules to the state tax. Nothing in this measure would prevent municipalities from continuing existing or imposing new excise taxes on specific goods and services, such as a hotel bed tax or car rental tax. The state would be authorized to join the Streamlined Sales and Use Tax Agreement, a national organization formed to create and administer standardized rules and definitionsto reduce the burden of tax compliance for businesses.”

For further Information:

House Bill No. 5004 Fiscal Notes Analysis