Alaska is one of five states (Delaware, New Hampshire, Montana, and Oregon) that do not impose a traditional sales or use tax. Since there isn’t a state level sales or use tax, you might conclude that you don’t need to worry about sales or use taxes when doing business in Alaska. However, like Alabama, there are numerous local or “home rule” jurisdictions within Alaska where sales and use tax is imposed (see our Eye On Alabama Sales Tax for a definition of “home rule”). Local jurisdictional sales tax rates range from 0.5% to 7.5%.
Collection of the local sales and use tax is predicated on having nexus within the local jurisdiction. In other words, you might have nexus with the state of Alaska but you may not have nexus with any local jurisdiction and therefore would not be obligated to collect sales or use tax.
Similar to Alabama, there are local business license or privilege license fees that may be applicable when you are registered to collect and remit sales tax.
For more information regarding local sales and use tax in Alaska see:
Stay tuned for more of Jeff's EYE ON series as he blogs about sales and use tax State by State.