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