- Alaska Statutes.
- Title 29. Municipal Government
- Chapter 45. Municipal Taxation
- Section 650. Sales and Use Tax.
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. Notice of Sales and Use Tax.
AS 29.45.650. Sales and Use Tax.
- (a) Except as provided in AS 04.21.010
(c), AS 29.45.750
, and in (f), (h), (i), and (j) of this section, a borough may levy and collect a sales tax on sales, rents, and on
services provided in the borough. The sales tax may apply to any or all of these sources. Notwithstanding other statutes, exemptions may be granted by
ordinance. A borough may wholly or partially exempt a source from a borough sales tax that is taxed by a city in that borough under AS 29.45.700 .
- (b) A borough levying a sales tax may also by ordinance levy a use tax on the storage, use, or consumption of tangible
personal property in the borough. The use tax rate must equal the sales tax rate and the use tax shall be levied only
- (c) A person who furnishes proof, in the form required by the borough tax collector, that the person has paid a sales tax
on the source on which a use tax is levied by the borough is required to pay the use tax only to the extent of the
difference between the amount of the sales tax paid and the amount of the use tax levied by the borough. This
subsection applies to a sales tax levied in any taxing jurisdiction whether inside or outside the state.
- (d) If the assembly charges interest on sales taxes not paid when due, the rate of interest may not exceed 15 percent a
year on the delinquent taxes and shall be charged from the due date until paid in full. This subsection applies to
home rule and general law municipalities.
- (e) A borough may provide for the creation, recording, and notice of a lien on real or personal property to secure the
payment of a sales and use tax, and the interest, penalties, and administration costs in the event of delinquency.
When recorded, the sales tax lien has priority over all other liens except (1) liens for property taxes and special
assessments; (2) liens that were perfected before the recording of the sales tax lien for amounts actually advanced
before the recording of the sales tax lien; (3) mechanics' and materialmen's liens for which claims of lien under AS 34.35.070
or notices of right to lien under AS 34.35.064 have
been recorded before the recording of the sales tax lien. This subsection applies to home rule and general law
- (f) A borough may not levy and collect a sales tax on a purchase made with (1) food coupons, food stamps, or other type of
allotment issued under 7 U.S.C. 2011 - 2036 (Food Stamp Program); or (2) food instruments, food vouchers, or other type
of certificate issued under 42 U.S.C. 1786 (Special Supplemental Food Program for Women, Infants, and Children). For
purposes of this subsection, the value of a food stamp allotment paid in the form of a wage subsidy as authorized under
(b) is not considered to be an allotment issued under 7 U.S.C. 2011 - 2036 (Food Stamp Program). This subsection
applies to home rule and general law municipalities.
- (g) [Repealed, Sec. 2 ch 159 SLA 1990].
- (h) A borough may not levy or collect a sales tax on sales, rents, and services, or a use tax on the storage, use, or
consumption of personal property on the following activities:
- (1) the sale, lease, rental, storage, consumption, or distribution in this state of or the provision of services relating
to an orbital space facility, space propulsion system, or space vehicle, satellite, or station of any kind possessing
space flight capacity, including the components of them;
- (2) the sale, lease, rental, storage, consumption, or use of tangible personal property placed on or used aboard an
orbital space facility, space propulsion system, or space vehicle, satellite, or station of any kind, regardless of
whether the tangible personal property is returned to this state for subsequent use, storage, or consumption; an
exemption under this paragraph is not affected by the failure of a launch to occur, or the destruction of a launch
vehicle or a component of a launch vehicle.
- (i) A borough may not levy or collect a sales or use tax on (1) the physical transfer of refined fuel, unless the transfer
is made in connection with a sale or use in the borough, or (2) wholesale sales or transfers of fuel refined in the
borough. A sale is in the borough if the fuel is delivered to the buyer in the borough. A use is in the borough if the
fuel is consumed in the borough. This subsection applies to home rule and general law municipalities.
- (j) The prohibitions on the levy and collection of a sales or use tax on refined fuel in (i) of this section do not apply
to a borough if, on the effective date of (i) of this section, the borough is
- (1) levying and collecting a sales or use tax on the sale, use, or transfer of refined fuel under an ordinance adopted
before January 1, 2003; or
- (2) receiving payments in lieu of a sales or use tax on the sale, use, or transfer of refined fuel under an agreement
entered into before January 1, 2003.
- (k) A borough may not levy or collect a sales or use tax on a construction contract awarded by the state or a
state agency, or on a subcontract awarded in connection with the project funded under the construction contract. This subsection applies
to home rule and general law municipalities.
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