Registration & Fees

 

Collecting and Filing Sales Tax

 

Any person, firm, or business entity is required by law to register with the City Tax Office before making sales, rendering services, or making rentals within the City and Borough of Sitka. A City and Borough of Sitka Business Registration Form and sales tax deposit of $50.00 is required of anyone doing business in the City and Borough of Sitka.

 

Topics

Sales Tax Rate

Itinerant Business

Residential and Commercial Rent

Filing a Return

Step by Step How to File a Return

Updating your Business Information

Closing your Business

Additional Taxes and Fees

 

Sales Tax Rate

 

 The City and Borough of Sitka has a fluxuating sales tax rate through-out the year.

  • 6% - April 1st - September 30th. (Quarters 2 & 3)
  • 5% - October 1st - March 30th. (Quarters 1 & 4)

 

 

Residential and Commercial Rent

 

Residential Long Term Rent paid for thirty (30) or more consecutive days, or an entire calendar month is exempt from sales tax.

 

Other long term rentals, including commercial property, trailer space and lot fees, rented for thirty (30) or more consecutive days or an entire calendar month by a single person or persons of a room, set of rooms, structure or suite such as trailer spaces) is taxed year round at a rate of 5%.

 

Filing a Return

 

Each person engaged in business in the City and Borough of Sitka, is subject to taxation under Section

4.09.010 and shall file a return in accordance with the following dates:

 

Quarterly

Return and due dates for quarters:

Q1

Ending March 31st

Due April 30th

Q2

Ending June 30th

Due July 31th

Q3

Ending September 30th

Due October 31st

Q4

Ending December 31st

Due January 31st

 

Late Fees, penalty and interest are charged on all late returns. Returns become delinquent one month following the end of the quarter. See Late Fees, penalty and interest for more information.

 

Discounts for Quarterly Filers

Monthly tax payments are encouraged and are available for all businesses that meet the following guidelines. A 3% discount (up to $100.00) will be available when a business files their quarterly returns, and only for those business who’s accounts are current and make on-time consecutive monthly payments by the 15th of each month. Quarterly return are still required to be filed (showing revenue for all three months). If your business made no sales, a quarterly return is still required.

 

 

Yearly

The yearly sales tax return is due January 31st of each year, for the prior year’s revenue. To qualify for a Yearly Filing Returns

  • Business must be current on their Sales Tax Filings,
  • File on-time quarterly returns, for a calendar year,
  • The total amount collected and remitted to the City and Borough of Sitka is two hundred dollars ($200) or less. SGC 4.09.270.3
  • Applicant must request this option by filling out a Yearly Filer Request Form.

 

Itinerant Business

 

Itinerant businesses are required to register and remit tax in full prior to leaving the City and Borough, or within 24 hours after expiration of their license. A $2.00 per day fee ($25.00 maximum), and a $50.00 minimum deposit is required. To apply for an Itinerant License, see Business & Itinerant Registration Form.

 

Exempt Sales

The following sales are exempt from taxation SCG 4.09.100:

  • Wholesalers who do not wish to pay sales tax must have completed an annual Resale Exemption Application and submit application fee to obtain a resale exemption card. This card must be presented to the retailer and the item/service wishing to be tax exempt must fall under the category listed on the card in order to qualify for tax exemption. The businesses not charging tax must maintain record of tax exempt number to justify their exemption on the sales tax quarterly return.
  • Senior citizens have tax exemption cards with numbers that they are required to show you for your records. See Senior Tax Exemption Application
  • Government agencies are tax exempt.
  • Non-profit organizations are exempt from sales tax on purchases made by organization ONLY IF they have applied and recieved a certificate from the City of Sitka. (Non Profit Exempt List) If the non profit organization is not on the exempt list, they are responsible for paying sales tax. This includes churches. To apply, see Non-Profit Exempt Application
  • Tax Cap Exemption is only to be charged on the first $12,000.00 of a single sale or billing unit, (i.e., if you have an invoice for $15,000.00, you would only charge tax on the first $12,000.00). SCG 4.09.100 (n)
  • Other Exemptions are available. See SCG 4.09.100 Exemptions.

 

Late Fees, Penalties, and Interest

Late Fees, penalty and interest are charged on all late returns. Returns are due one month following the end of the quarter. (i.e., the quarter ending March 31st, is due by the 30th day of April). 

Q1

Ending March 31st

Due April 30th

Q2

Ending June 30th

Due July 31th

Q3

Ending September 30th

Due October 31st

Q4

Ending December 31st

Due January 31st

 

Late Filing Fees are charged at a minimum of $15.00 & maxiumum $100.00. 

Penalty is charged at 5% of delinquent tax per month up to 25%.

Interest is charged at 12% of delinquent tax per annum.

 

Months Late

Late Fee

Penalty

Interest

1

 $             15.00

5%

12% Per Annum

2

 $             40.00

10%

12% Per Annum

3

 $             65.00

15%

12% Per Annum

4

 $             90.00

20%

12% Per Annum

5

 $           100.00

25%

12% Per Annum

Interest Calculation: (TAX DUE X .12 X # of Days/365)

 

Filing Instructions

    • For filing instructions, see the back side of your blue quarterly return or follow link to step by step instruction presentation (How to Fill out Return). Returns are mailed to you for completion no later than the last day of the quarter. If you do not receive a return by March 31st, June 30th, September 30th or December 31st, it is your responsibility to obtain one from the city offices or online at http://www.cityofsitka.com/business/taxes/index.html

 

Change in Ownership or Closing your Business

 

Closing or Selling your Business? Final returns must be filed for a business that has sold or has closed permanently within 10 days of closing your business.

  • Front Side of Return: Mark the box CLOSED: Permanently or Sold.
  • Update Mailing Address: If you have a Deposit on file, we will mailed back to you using your address on file.
  • Back Side of Return: Fill in the new owner’s information if the business sold.
  • A final return must be submitted no later than 10 days after selling the business. If you are just closing out the account you may wait until the end of the quarter to file your return.

 

Update your Account using the Business Information Change Form

 

Additional Taxes and Fees

 

    • Bed Tax = 6% bed tax (year round) on short term rentals (less than 30 days)
    • Cigarette & Tobacco Products Excise Tax = $.1231 per cigarette/90% of the wholesale price on Tobacco Products
    • Fish Box Tax = $10.00 per box
    • Drivers Facility Charge = 4% on rentals of motorized passenger vehicles.

Contract the City Tax Office about registrations, licensing and forms for remitting these additional taxes and fees at (907) 747-1840 or tax@cityofsitka.org