Online Sales Tax
The Alaska Municipal League is committed to a responsible and responsive approach to implementation of remote sales tax collection and remittance in Alaska. That means that our work thus far has focused on research that informs any next steps that municipalities choose to take, consistent with the interests of residents.
AML’s understanding of the Wayfair case is that while physical nexus is not necessary, collection of an online sales tax must not become burdensome to interstate commerce. The implications, again from our understanding, are that Alaska’s municipalities must work together toward a single-level, statewide administration of online sales tax collection and administration. In order to do this, the 105 taxing jurisdictions will need to agree to common definitions and a uniform Code. By working together, local governments will also produce software that accommodates existing caps and exemptions and accounts for sales tax boundaries using GIS. All of this is necessary for responsible implementation.
22 local governments have approved by resolution or other measure the Alaska Remote Sellers Intergovernmental Agreement; seven were needed to enter the Agreement into force. The Agreement establishes the Alaska Remote Sellers Sales Tax Commission, which on November 18, 2019 met and approved its Bylaws and elected a Board of Directors.
The Commission’s Board of Directors approved a uniform Remote Sellers Sales Tax Code on January 6, 2020, which will apply to members upon adoption by each.