Chapter 17.15
TAX ON SALES MADE BY REMOTE SELLERS
Sections:
17.15.030 Adoption of Alaska Remote Sellers Sales Tax Code.
17.15.040 Delegation of authority.
17.15.010 Scope.
This chapter applies only to sales made by remote sellers as defined herein. (Ord. O-20-02-01 § 14 (part), 2020)
17.15.020 Definitions.
When not clearly otherwise indicated by the context, the following words and phrases, as used in this chapter, have the following meanings:
“Commission” means the Alaska Remote Seller Sales Tax Commission established by agreement between local government taxing jurisdictions within Alaska and delegated tax collection authority.
“Delivered electronically” means delivered to the purchaser by means other than tangible storage media.
“Delivery charges” means charges by the seller of personal property or services for preparation and delivery to a location designated by the purchaser of personal property or services including, but not limited to, transportation, shipping, postage, handling, crating and packing.
“Entity-based exemption” means an exemption based on who purchases the product or who sells the product. An exemption that is available to all individuals shall not be considered an entity-based exemption.
“Goods for resale” means:
(1) The sale of goods by a manufacturer, wholesaler or distributor to a retail vendor; sales to a wholesale or retail dealer who deals in the property sold, for the purpose of resale by the dealer.
(2) Sales of personal property as raw material to a person engaged in manufacturing components for sale, where the property sold is consumed in the manufacturing process of, or becomes an ingredient or component part of, a product manufactured for sale by the manufacturer.
(3) Sale of personal property as construction material to a licensed building contractor where the property sold becomes part of the permanent structure.
“Lease” or “rental” means any transfer of possession or control of tangible personal property for a fixed or indeterminate term for consideration. A lease or rental may include future options to purchase or extend.
“Local sale” means a sale by a seller with a physical presence in a taxing jurisdiction, where the point of delivery is a location within the same taxing jurisdiction.
“Marketplace” means a physical or electronic place, platform or forum, including a store, booth, internet website, catalog or dedicated sales software application, where products or services are offered for sale.
“Marketplace seller” means a person that makes retail sales through any physical or electronic marketplace that is operated by a marketplace facilitator.
“Member jurisdiction” means a taxing jurisdiction that is a signatory of the Alaska Remote Seller Sales Tax Intergovernmental Agreement, thereby members of the Commission, and who have adopted the Alaska Remote Seller Uniform Sales Tax Code.
“Point of delivery” means the location at which property or a product is delivered or service rendered.
(1) When the product is not received or paid for by the purchaser at a business location of a remote seller in a member jurisdiction, the sale is considered delivered to the location where receipt by the purchaser (or the purchaser’s recipient, designated as such by the purchaser) occurs, including the location indicated by instructions for delivery as supplied by the purchaser (or recipient) and as known to the remote seller or marketplace facilitator.
(2) When the product is received or paid for by a purchaser who is physically present at a business location of a remote seller in a member jurisdiction the sale is considered to have been made in the member jurisdiction where the purchaser is present even if delivery of the product takes place in another member jurisdiction. Such sales are reported and tax remitted directly to the member jurisdiction, not to the commission.
(3) When the service is not received by the purchaser at a business location of a remote seller, the service is considered delivered to the location where the purchaser receives the service.
(4) For products or services transferred electronically, or other sales where the remote seller or marketplace facilitator lacks a delivery address for the purchaser, the remote seller or marketplace facilitator shall consider the point of delivery of the sale to be the billing address of the buyer.
“Product-based exemptions” means an exemption based on the description of the product and not based on who purchases the product or how the purchaser intends to use the product.
“Professional services” means services performed by architects, attorneys-at-law, certified public accountants, dentists, engineers, land surveyors, surgeons, veterinarians, and practitioners of the healing arts (the arts and sciences dealing with the prevention, diagnosis, treatment and cure or alleviation of human physical or mental ailments, conditions, diseases, pain or infirmities) and such occupations that require a professional license under Alaska Statute.
“Remote sales” means sales of goods or services by a remote seller.
“Services” means all services of every manner and description, which are performed or furnished for compensation, and delivered electronically or otherwise into a member jurisdiction including but not limited to:
(1) Professional services;
(2) Services in which a sale of property or product may be involved, including property or products made to order;
(3) Utilities and utility services not constituting a sale of property or products, including but not limited to sewer, water, solid waste collection or disposal, electrical, telephone services and repair, natural gas, cable or satellite television, and internet services;
(4) The sale of transportation services;
(5) Services rendered for compensation by any person who furnishes any such services in the course of his trade, business, or occupation, including all services rendered for commission;
(6) Advertising, maintenance, recreation, amusement, and craftsman services.
“Transferred electronically” means obtained by the purchaser by means other than tangible storage media. (Ord. O-21-04-01 § 3, 2021; Ord. O-20-02-01 § 14 (part), 2020)
17.15.030 Adoption of Alaska Remote Sellers Sales Tax Code.
The city adopts by reference the February 24, 2021, Edition of all provisions of the Alaska Remote Sellers Sales Tax Code (including the definitional section included in NCO Section 17.15.020 and definitions included in NCO Section 17.10.180) and that portion of the supplemental definitions thereto not included in NCO Section 17.10.180. (Ord. O-21-04-01 § 1, 2021; Ord. O-20-02-01 § 14 (part), 2020)
17.15.040 Delegation of authority.
The city hereby delegates the authority to administer and collect tax on sales made by remote sellers to the Commission including remote seller sales tax registration, exemption certification, collection, remittance, and audit authority. This delegation of authority does not include administration of applications for exemption or resale certificates which shall be administered by the city as provided in NCO Sections 17.10.050 and 17.10.175. (Ord. O-20-02-01 § 14 (part), 2020)