HB 233: "An Act relating to the levying and collecting of sales and use tax; and providing for an effective date."
00 HOUSE BILL NO. 233 01 "An Act relating to the levying and collecting of sales and use tax; and providing for an 02 effective date." 03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 04 * Section 1. AS 29.45 is amended by adding a new section to read: 05 Article 5A. Collection of Sales and Use Tax by the State. 06 Sec. 29.45.750. Collection of municipal sales and use tax by the state. (a) 07 The Department of Revenue may collect a sales and use tax levied by a municipality 08 under AS 29.45.650 or 29.45.700 and remit it to the municipality if 09 (1) requested to do so by municipal ordinance; and 10 (2) the exemptions to the municipal sales and use tax conform to the 11 exemptions in AS 43.44.020. 12 (b) The state may retain seven percent of the amount collected under (a) of 13 this section as a fee for its services. 14 * Sec. 2. AS 43 is amended by adding a new chapter to read:
01 Chapter 44. Sales and Use Tax. 02 Sec. 43.44.010. Levy of sales and use tax; tax rate. (a) A sales tax is levied 03 on the sale or other transfer for consideration of goods, on rents, and on services 04 performed for consideration in the state. 05 (b) A use tax is levied on the storage, use, or consumption of tangible personal 06 property acquired on or after January 1, 2002. The use tax is not levied if the tax 07 under (a) of this section has been paid on the property. 08 (c) The rate of the sales tax is two percent of the price of goods sold or 09 otherwise transferred, rents, and the value of services performed. The rate of the use 10 tax is two percent of the value of tangible personal property stored, used, or consumed. 11 Sec. 43.44.020. Exemptions. The tax levied under AS 43.44.010 does not 12 apply to 13 (1) purchases made with 14 (A) food coupons, food stamps, or other types of certificates 15 issued under 7 U.S.C. 2011 - 2025 (Food Stamp Act); 16 (B) food instruments, food vouchers, or other types of 17 certificates issued under 42 U.S.C. 1786 (special supplemental nutrition 18 program for women, infants, and children); 19 (2) goods sold, rents, services performed, or personal property stored, 20 used, or consumed that are otherwise exempt from taxation under federal or state law; 21 (3) sales of goods or services for resale; 22 (4) sales, services, and rentals to or by the United States, the state, or 23 an instrumentality or political subdivision of either; 24 (5) professional services by a person licensed or certified by the state 25 to practice medicine, podiatry, osteopathy, chiropractic or chiropractic core 26 methodology, dentistry, dental hygiene, marital and family therapy, mortuary science, 27 naturopathy, optometry, audiology, direct-entry midwifery, acupuncture, physical 28 therapy, psychology, occupational therapy, or nursing, and services provided by a 29 state-licensed or state-certified nurse assistant, psychological associate, hospital, or 30 assisted living home, provided that the sale is within the scope of the state license or 31 certificate;
01 (6) sales of prescription drugs, sales of medical supplies and 02 equipment prescribed by a person licensed or certified in one of the areas listed in (5) 03 of this section, or sales of funeral supplies by a person licensed to practice mortuary 04 science; 05 (7) that part of the selling price of a single item that exceeds $2,000; 06 for purposes of this paragraph, a single item is an item sold in a single sale consisting 07 of integrated and interdependent component parts affixed or fitted to one another in 08 such a manner as to produce a functional whole; optional accessories, including goods, 09 services, and contracts for services, if used or essential for the operation of the item, 10 are considered part of the functional whole; 11 (8) that part of the periodic selling price of a single service that 12 exceeds $2,000; for purposes of this paragraph, 13 (A) the periodic selling price is the amount owed on a calendar- 14 month or invoice basis, whichever is more frequent; services or contracts 15 exceeding a payment period of one calendar month are computed for sales tax 16 purposes as though payment were to be made on a calendar-month basis; 17 (B) a single service is an interrelated and interdependent 18 function necessary to perform a specified action; 19 (9) that part of the periodic rental price that exceeds $2,000 for rental 20 of a single item of real or personal property; for purposes of this paragraph, 21 (A) the periodic rental price is the amount owed on a monthly 22 or more frequent basis; 23 (B) rentals exceeding a payment period of one month are 24 computed for sales tax purposes as though payment were to be made on a 25 monthly basis; 26 (10) the following activities: 27 (A) the sale, lease, rental, storage, consumption, or distribution 28 in this state of or the provision of services relating to an orbital space facility, 29 space propulsion system, or space vehicle, satellite, or station of any kind 30 possessing space flight capacity, including the components of them; 31 (B) the sale, lease, rental, storage, consumption, or use of
01 tangible personal property placed on or used aboard an orbital space facility, 02 space propulsion system, or space vehicle, satellite, or station of any kind, 03 regardless of whether the tangible personal property is returned to this state for 04 subsequent use, storage, or consumption; an exemption under this 05 subparagraph is not affected by the failure of a launch to occur or by the 06 destruction of a launch vehicle or a component of a launch vehicle; 07 (11) a sale that is casual, isolated, and not made in the ordinary course 08 of business; 09 (12) goods sold for resale in the ordinary course of business; 10 (13) sales by or to a person who is exempt from federal taxation under 11 26 U.S.C. 501; 12 (14) financial service transactions; for purposes of this chapter 13 financial service transactions are limited to deposit account services, loan transaction 14 fees, transactions relating to the sale or exchange of currency or securities, 15 transactions for conversion of negotiable instruments, safe deposit services, and 16 escrow collection services; 17 (15) insurance premiums; 18 (16) freight hauling and shipping services; 19 (17) sales by or to an entity organized as a religious corporation under 20 Alaska law. 21 Sec. 43.44.030. Registration. A seller shall register with the department 22 before making retail sales, rendering services, or making rentals within the state. 23 Sec. 43.44.040. Collection of sales tax. (a) A seller shall add the amount of 24 the sales tax levied by this chapter to the total price of goods, rentals, or services 25 subject to the tax, and the tax shall be stated separately on any sales receipt, invoice, or 26 other record of the sale or rental. 27 (b) A seller shall collect the sales tax from the purchaser and remit the tax 28 collected to the department not later than 30 days following the last day of the month 29 in which the tax was collected. 30 (c) A seller remitting the sales tax collected under this chapter to the 31 department within 30 days of the last day of the preceding month may retain five
01 percent of the amount collected, not to exceed $1,000 a calendar quarter, to cover 02 expenses associated with collecting and remitting the tax. In this subsection, "calendar 03 quarter" means each of the three-month periods ending March 31, June 30, 04 September 30, and December 31. 05 Sec. 43.44.050. Payment of use tax. A buyer subject to the use tax shall 06 remit the tax to the department not later than 30 days following the last day of the 07 month in which the taxable storage, use, or consumption occurs. 08 Sec. 43.44.060. Collection of state sales and use tax by a municipality. (a) 09 A municipality that levies a sales and use tax under AS 29.45.650 or 29.45.700 may 10 also the collect the state sales and use tax and remit it to the department if 11 (1) authorized by municipal ordinance; and 12 (2) the exemptions to the municipality's sales and use tax conform to 13 the exemptions in AS 43.44.020. 14 (b) A municipality that collects and remits the state sales and use tax may 15 retain seven percent of the amount collected as a fee for its services. 16 * Sec. 3. This Act takes effect January 1, 2002.