Dash of SALT

Alaska State Tax Updates

For the latest news and updates on Alaska state and local tax

September 23, 2021

Alaska Introduces Bill to Implement a Statewide Sales Tax- Foreign Information Technology Services Not Subject to Tax

On August 30, 2021, Alaska’s legislature has proposed to apply a 2% statewide sales tax. As it stands right now, Alaska allows localities (e.g., Juneau) to impose and collect their own local sales tax (and use Wayfair nexus standards). If the bill is enacted, the 2% statewide rate would be in addition to any local sales tax imposed. Furthermore, the proposed legislation centralizes sales tax collection for both state and local sales tax and the Alaska Department of Revenue would become responsible for distributing the taxes remitted to the appropriate localities. There is a strong sense that a statewide sales tax will continue to utilize Wayfair nexus standards. If this bill is enacted, New Hampshire, Oregon, Montana, and Delaware will be the only remaining states that do not impose sales and use tax taxes.

Disclaimer: Please note this is the information that is readily available at this time, it is subject to change so please consult your Withum tax advisor.