Alaska Remote Sellers Sales Tax Commission

Alaska does not have a state sales tax, but communities have the authority to levy sales tax on businesses with physical nexus. As internet access improves across our state, Alaskans flock to online shopping which erodes the local sales tax base. The COVID pandemic has forced shoppers to seek goods safely online; further diminishing the local sales tax base. In 2018, the South Dakota v Wayfair, Inc. Supreme Court decision established that companies with economic nexus could be taxed on remote sales delivered into a taxing jurisdiction. The Alaska Remote Sellers Sales Tax Commission (ARSSTC or the Commission) was developed to adapt to this new economic reality. The Commission works with jurisdictions and remote sellers to implement the rules regarding remote sales tax collection. The Commission establishes cross-community standards, strengthens individual communities by virtue of a collective voice, and provides tangible benefits to sellers. No individual community would be able to engage all the national sellers to implement the sales tax collection on remote sales. The Commission’s approach allows communities across Alaska to stem the local sales tax base erosion, creates a level playing field between local sellers and remote sellers, and tap into a tax base that was previously unavailable.
Award Category
Financial Management
County
Alaska Municipal League
External Link
http://www.akml.org/