Alaska – Communities Are One Step Closer To Collecting Online Sales Tax

Alaska communities that collect sales tax are getting close to leveling the playing field between online retailers and brick and mortar stores.

Last week, the Alaska Municipal League, or AML, announced a plan to create a statewide code and commission to oversee the collection of sales taxes from out-of-state businesses.

Online retailers would register with the commission rather than the more than 100 individual local governments currently collecting sales tax.A 2018 Supreme Court decision allowed states to charge sales tax on purchases from out-of-state online retailers.

But Alaska doesn’t have a statewide sales tax. AML spent the last year figuring out how to streamline sales tax collection from online retailers.

Some online retailers are already charging sales taxes, like Amazon.  But, that company’s tax collection only applies to certain purchases.  And, because there are so many different sales tax jurisdictions in Alaska, the amount is sometimes wrong.

For the full story: ALASKA PUBLIC MEDIA

alaska public media
by adelyn baxter
October 23, 2019