Doing Business in the City and Borough of Sitka

 

The City and Borough of Sitka welcomes and encourages new business activity as well as supporting our current businesses. The Tax Office staff are available to serve you Monday through Friday from 8:00 a.m. – 5:00 p.m. (with the exception of recognized holidays) on the second floor finance department of City Hall at 100 Lincoln Street Sitka, Alaska.

 

Laurie Serka             
Tax Clerk                             
907-747-1840

tax@cityofsitka.org

      

 

Tax Accountant

907-747-1853

 

 

 REMINDERS:

The 6% seasonal sales tax has ended as of October 01,2018. The sales tax rate will remain 5% through March 31, 2019.

 

TAX FREE DAYS ARE SOON COMING SOON ON NOVEMBER 23, AND 24!

 

Collecting and Filing Sales Tax

Every sale which is made within the City and Borough of Sitka, unless explicitly exempted by Sitka General Code Chapter 4.09.100, or subsequent ordinance, shall be presumed to be subject to the city sales tax of 5% or 6% (seasonally) imposed.

 

This requires by law any person or business to register with the City of Sitka Tax Office before making sales, rendering services, or providing rentals within city limits.

 

Please Note: The City and Borough of Sitka also enacts a 6% transient room tax, as well as, a 4% driver’s facility charge and a $10/box fish box tax to be collected and remitted by persons or business conducting sale.

Business Licenses & Permits

In addition to registering your business with the City of Sitka to collect and remit taxes, a business license issued by the State of Alaska is required and may be obtained online at https://www.commerce.alaska.gov/web/cbpl/businesslicensing.aspx 

 

If you plan to conduct business as a taxi and/or tour operator, you are required to obtain yearly permits issued by Sitka Police Department. Please call 907-747-3245 for questions.

Tax Forms/Registrations

Registrations are available in the Tax Office as well as online. Below are forms frequently requested:

New/Reopen Business Registration Application

Quarterly Tax Return Form

Exempt Sales Record

 

Additional forms are available here.

Exempt Sales

All sales made within the City and Borough of Sitka are considered taxable unless specifically exempted. All possible exemptions from collection of sales tax are listed in Sitka General Code 4.09.100.

 

Common exemptions include:

    • Wholesale Registered businesses who do not wish to pay sales tax on items purchased for resale must complete an annual Resale Exemption Application and submit the form and application fee to obtain a resale exemption card. This card must be presented to the retailer and the item wishing to be tax exempt must fall under the category listed on the card in order to qualify for tax exemption. The retailer must maintain this number in their records to justify their exemptions on the sales tax return.
    • Government agencies are tax exempt from paying sales and bed tax.  A list of Government Agencies may be found here. Please call for verification if entity is not listed.
    • Non-profit organizations are not exempt from paying sales tax only if they are 501(c)3 and receive 50% or more government funding (grants, etc.). In addition they must apply and receive an exempt certificate (valid for 2 years) from the CBS Tax Office. Current list of exempt Non-profit organizations.
    • Separately, 501(c)3 non-profits are exempt from collecting sales tax if they do not hold regular business hours and do not have any paid employees. These organizations however are not exempt from paying sales tax on purchases, rents, or services rendered to them. This includes churches.
    • Tax Cap for Sales Tax Exemption is only to be charged on the first $12,000.00 of a single sale or billing unit, (i.e., if you sold a piece of equipment or service for $14,000.00, you would only charge tax on the first $12,000.00). SCG 4.09.100 (n).

Business Resources

This link has been organized to assist businesses, however, it does not include all of the resources that may be available to you.

 

Other Topics:

 

Bids & RFP's

The City and Borough of Sitka's Public Works Department posts Requests for Proposals and Bids on construction projects, janitorial projects, and other projects within the City and Borough of Sitka. On other occasions, Administration or other departments may put out a request for proposal as well. Click here for current RFP's and/or Bid requests.

Job Opportunities

The City and Borough of Sitka hires temporary workers and contracted employees on occasion for short-term or temporary work. This link will redirect you to the Human Resources site where these opportunities will be posted.

Development and Incentives

The City and Borough of Sitka offers local and state resources for small business.