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Sales Taxes
EFFECTIVE JANUARY 1, 2024, SALES TAX FORMS WILL NOT BE MAILED UNLESS YOU OPT-IN TO RECEIVE THEM
Sales Tax Form Delivery Method
Updated as of June 30, 2023
Delinquent Sales Tax List - Alphabetical (PDF) Opens a New Window.
Delinquent Sales Tax List - Dollar amount (PDF) Opens a New Window.
Borough Sales Tax Rate - 2.5%
City of Saxman Sales Tax Rate - 6.5% *
*(City Taxes 4% + Borough Taxes 2.5%)
City of Ketchikan Sales Tax Rates:
April 1st - September 30th - 8% *
*(City Taxes 5.5% + Borough Taxes 2.5%)
October 1st - March 31st - 5.5% *
*(City Taxes 3% + Borough Taxes 2.5%)
Residential Rents - 5.5% Year Round
New Businesses
New businesses will be required to file and transmit collected sales taxes monthly for a period of no less than six months. Upon expiration of this initial six months, the Borough will determine if the business has complied with all provisions of this chapter before converting the business to quarterly reporting. This decision will be based on previous filings and is at Borough discretion.
Filing of Tax Returns & Payment of Tax
The tax levied by this title is due and payable at the expiration of each quarter of each calendar year. It is the duty and responsibility of every seller liable for the collection of any tax imposed herein, to file with the Borough upon forms prescribed, and furnished by the Borough. The completed return, together with remittance in full for the amount of tax due, shall be transmitted to and received by a borough employee working in the Finance Department on or before 5 p.m. local time, on the last day of the month succeeding the end of each said quarter.
Method of Sales Tax Form Delivery
Failure to File
Failure to receive a sales tax return or billing shall not relieve the seller from its obligation to timely remit all sales taxes. Merchants are responsible for obtaining the proper forms in ample time to report and remit within the time indicated by the ordinance.
Reporting is Required
Any person who filed or should have filed a sales tax return for the prior quarter shall file a return even though no tax may be due. This return shall show why no tax is due, or, if the business is sold, than the person to whom it was sold, the date it was sold, and the address and telephone number of the person to whom it was sold.
Sale of Business, Closure
If you sell your business to another person, you are required to file a final sales tax return within five days after the date of sale. Further, you are required to withhold a sufficient portion of the purchase money to pay the amount of any sales taxes, penalties and interest that is due and unpaid to the Borough. Any unpaid tax liabilities of a business that has been sold at the time of sale will become personal liabilities of the new owner.
Duty to Keep Books: Investigation
As a business owner, you are required to keep and preserve suitable records of all sales, including all invoices of goods purchased for resale and any other books or accounts for a period of two years. This retention is necessary for the Borough to determine the amount of tax for the collection of which you are liable, which are open for examination at any reasonable time by the Borough.
Resale Certificates: Misuse
The Finance department shall issue resale certificates to be utilized in purchases for resale, which are exempt from sales tax due to the exception providing governing items for resale. Resale certificates are valid for a period of one year and shall be reissued annually by the Borough. Resale certificates shall be surrendered when the holder ceases doing business.
Misuse of a resale certificate is a violation subject to penalty. Misuse of a resale certificate shall constitute a misdemeanor and is punishable by a fine up to $500, plus costs of prosecution, in addition to civil action that may be pursued by the Borough.
- Registered Merchants
- New Merchants
- Merchant Responsibilities
- Who Must Register
- Merchant Responsibilities
Responsibilities
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.
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 (PDF) 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 (PDF) 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.
Merchant Responsibilities
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.
Marijuana Sales Tax
A special sales tax of five percent is levied on the retail price of marijuana and marijuana products sold in the borough for retail. Attached is a link to the Borough Code 4.50(b).
Additionally, Ketchikan Gateway Borough collects Marijuana Sales Tax on behalf of the City of Ketchikan. Attached is a link to the City of Ketchikan Municipal Code 3.04.020 (b).