Common sales tax questions
If I fail to remit sales tax can I lose my license?Yes. The license may be revoked or suspended if the seller fails to remit delinquent sales tax, penalty and interest within thirty (30) days after notice. It is then unlawful for a seller to engage in business without a current City business license.
Do I have to charge and collect the city sales tax and for what?Yes. The City of Wasilla sales tax is imposed and collected pursuant to the authority granted by Alaska Statutes (Section 29.45.700 et. Seq.) This sales tax is to be liberally construed to include within the tax all retail sales, rentals and service activities.
Does everyone get charged sales tax?Yes. Everyone is charged sales tax. Only those payers who have evidence of a current City of Wasilla sales tax exemption, obtained through the Finance Department at City Hall will not be charged. It is in your best interest to obtain a copy of each exemption that is granted.
What is the most sales tax charged on a sale?The first $500 of any one sale or transaction is taxed at the current 2% rate. You will never charge a customer more than $10.00 on any one transaction. In the case of an ongoing project, which is billed monthly, the sales tax is billed once per month. Commercial rentals follow this same suit; assuming the commercial rental is over $500 per month, the tenant would be charged the $10.00 maximum tax each month.
What if I am overcharged sales tax?If you have been charged sales tax, the buyer should immediately contact the seller and request a refund. If a refund is not given once requested, the buyer must contact the City to complete a protest within 30 days of the transaction receipt. A certificate of protest must be completed along with copies of the receipt that details the name of the business, the date of the transaction and the amount of tax charged.
What do I do if I've overcharged or collected too much tax?If a seller has over collected tax, a refund should be issued to the buyer. If it is not possible to refund the buyer the tax must be remitted to the City for the period it was collected for. The reason for the error MUST be rectified as soon as possible to prevent it from happening in the future.
Can I pay the sales tax myself and not charge the customer?Only if you make notice to your customers that the price includes sales tax.
What if I didn't collect any sales tax during a month?You must turn in any and all sales tax report forms that you receive, either with the payment due or with a zero (0) listed as the amount due. Make sure you date and sign the return before returning it to the city. Even reports, where there is no tax to report (zeros), are subject to the $250 violation should they not be delivered in a timely manner.
What if I don't pay the city the sales tax I charged my customers?The City follows a regular request pattern for the remittance of the sales tax. Failure to pay may result in the revocation of your business license. Delinquent sales tax is charged up to a 25% penalty, plus 15% interest, as well as a $250 ordinance violation fee per month that is not reported. The City employs Cornerstone Credit Services to its handle collections. In addition, the City can foreclose a recorded sales tax lien as provided by law.
Can I spend the sales tax that I collect?No. Title to sales tax vests in the City upon collection by the seller. The seller holds the sales tax in trust for the City, and is accountable to the City therefore.
Does the city ever conduct audits?Yes.
How are sales tax payments applied?All payments of sales tax received form a seller owing delinquent sales tax shall be applied first to accrued penalty, second to accrued interest, and then to sales tax payments owed by the seller in the order of their due dates.
Contact us: City of Wasilla Department of Finance290 E. Herning Avenue Wasilla, AK 99654 Phone: 907.373.9080 Fax: 907.373.9085Email: SalesTax@ci.wasilla.ak.us
Office hoursMonday - Friday, 8 a.m. to 5 p.m.
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