Alaska – Amazon’s Collecting Sales Tax Now, Will Alaska Cities See That Money?

Web retailers began adding sales tax to purchases online this year. It’s supposed to reflect the local tax rate. Now, the City of Wrangell wants assurances from mega-retailers like Amazon that those sales tax dollars reach city coffers.

Wrangell has one of the highest sales taxes in Alaska: 7 percent. Last year it collected about $2.5 million locally.

But a recent U.S. Supreme Court decision means online retailers need to start remitting sales tax to this Southeastern community – no matter where in the world they might be.

Starting this year, mega-retailer Amazon began adding 7 percent to all purchases shipped to Wrangell. But that money doesn’t automatically appear in the city’s accounts.


Posted by June Leffler | Apr 5, 2019