Borough Sales Tax Rate 2.5%
City of Ketchikan Sales Tax Rate 6.5%
City of Saxman Sales Tax Rate 6.5%
Who Must Register
A person, corporation, or other association that is about to make sales, perform services, or make rentals shall first register with the Finance Department.
A person, firm, partnership, corporation, or other business entity shall file an application for registration with the Finance Department, on a form provided by the Borough, prior to making any retail sales, rendering any services, making rentals within the Borough, or the opening of an additional place of business in the Borough.
The completed application shall be returned to the Finance Department along with a copy of the business entity's Alaska State business license. Each business entity shall be registered under the advertised name, and each separate business shall be registered under its own account.
You have now accepted the responsibility to collect and remit sales tax.
The tax levied under the provision of this chapter is primarily upon the buyers of said property, rentals, or services, but the tax is payable to the borough by the seller regardless of whether the seller has collected the same from the buyers. It is the duty of each seller to collect from the buyer or consumer the full amount of the sales tax payable on each taxable sale, service or rental, at the time the property sold is delivered, or when the rentals are collected.
Every sales, which is made within the Borough, unless explicitly exempted by this chapter, or subsequent ordinance, shall be presumed to be subject to the tax imposed hereunder in any action to enforce the provisions of this chapter.
Under the sales tax ordinance, there are certain exemptions from the sales tax. It is the responsibility of the buyer to provide proper documentation to the merchant that a sale would be exempt from the sales tax. It is the merchant's responsibility to document the exempt transaction according to borough code.
It is your responsibility to comply with the laws and regulations that pertain to your business environment in which you operate. If you are still uncertain of how the tax applies in general or to specific transactions please call or write the revenue department.
Thank you in advance for your efforts in collecting an remitting sales and transient occupancy tax according to our ordinances.
Please contact us at 907-228-6620 for answers to any of your questions.