HB 3006: "An Act relating to a state sales and use tax; relating to sales and use taxes levied by municipalities; authorizing the Department of Revenue to enter into the Streamlined Sales and Use Tax Agreement; and providing for an effective date."
00 HOUSE BILL NO. 3006 01 "An Act relating to a state sales and use tax; relating to sales and use taxes levied by 02 municipalities; authorizing the Department of Revenue to enter into the Streamlined 03 Sales and Use Tax Agreement; and providing for an effective date." 04 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 05 * Section 1. AS 28.10.021(a) is amended to read: 06 (a) The owner of a vehicle subject to registration shall apply for registration 07 under this chapter by properly completing the form prescribed by the commissioner 08 under AS 28.05.041. Before the issuance of a certificate of registration by the 09 department, the owner shall 10 (1) pay all registration fees and taxes required under this chapter, 11 [AND] federal heavy vehicle use taxes required under 26 U.S.C. 4481 (Internal 12 Revenue Code of 1954), and the sales or use tax levied under AS 43.44.010; 13 (2) unless the owner qualifies as a self-insurer under AS 28.20.400 or 14 is exempted from obtaining liability insurance under AS 28.22.011, certify to the
01 department the existence of a motor vehicle liability policy that complies with 02 AS 28.22.011 for the vehicle being registered; in this paragraph, "certify" means to 03 indicate by check-off on the vehicle registration form prescribed by the department the 04 existence of a policy of insurance, if a policy is required at that time, and the intention 05 to continue the policy or obtain a policy as required by this subsection; and 06 (3) comply with other applicable statutes and regulations. 07 * Sec. 2. AS 29.10.200(56) is amended to read: 08 (56) AS 29.45.650 [AS 29.45.650(c), (d), (e), (f), (i), (j), AND (k)] 09 (sales and use tax); 10 * Sec. 3. AS 29.10.200(57) is amended to read: 11 (57) AS 29.45.700 [AS 29.45.700(d), (e), AND (g)] (sales and use 12 tax); 13 * Sec. 4. AS 29.10.200 is amended by adding a new paragraph to read: 14 (68) AS 29.45.655 (specific taxes on property and services). 15 * Sec. 5. AS 29.35.110(a) is amended to read: 16 (a) Borough revenues received through taxes levied [COLLECTED] on an 17 areawide basis by the borough may be expended on general administrative costs and 18 on areawide functions only. Borough revenues received through taxes levied 19 [COLLECTED] on a nonareawide basis may be expended on general administrative 20 costs and functions that render service only to the area outside all cities in the 21 borough. 22 * Sec. 6. AS 29.35.110(c) is amended to read: 23 (c) Notwithstanding (a) of this section, a borough that has entered into an 24 agreement with a city located in the borough to cooperatively or jointly provide for 25 economic development may use borough revenue from taxes, whether levied 26 [COLLECTED] on an areawide or nonareawide basis, to carry out the terms of the 27 agreement. 28 * Sec. 7. AS 29.35.170 is amended to read: 29 Sec. 29.35.170. Assessment and collection of taxes. (a) A borough shall 30 assess and collect property [, SALES, AND USE] taxes that are levied in its 31 boundaries, subject to AS 29.45.
01 (b) Taxes, other than general sales and use taxes, levied by a city shall be 02 collected by a borough and returned in full to the levying city. This subsection applies 03 to home rule and general law municipalities. 04 * Sec. 8. AS 29.35.170 is amended by adding a new subsection to read: 05 (c) Notwithstanding (a) and (b) of this section, AS 29.45.650(c), and 06 AS 43.44.020(c), a municipality that levies a general sales and use tax may collect the 07 municipality's general sales and use tax through December 31, 2022. The state shall 08 assume responsibility for levying and collecting a municipal general sales and use tax 09 on July 1, 2022, unless requested to do so earlier by a municipality that has conformed 10 its tax base, including exemptions, definitions, and sourcing rules, to AS 43.44. 11 * Sec. 9. AS 29.45.650(a) is repealed and reenacted to read: 12 (a) Except as provided in AS 29.45.750, a borough may levy a general sales 13 tax on the sale and rental of tangible or intangible property and on services provided in 14 the borough. The borough may only levy sales tax on a purchaser. 15 * Sec. 10. AS 29.45.650(b) is repealed and reenacted to read: 16 (b) A borough levying a general sales tax may levy a use tax on the storage, 17 use, or consumption of tangible personal property and on services provided in the 18 borough. The use tax rate must equal the sales tax rate, and the borough may only levy 19 a use tax on a purchaser. 20 * Sec. 11. AS 29.45.650(c) is repealed and reenacted to read: 21 (c) Under AS 43.44 and subject to AS 43.44.020, the state shall administer 22 and collect a tax authorized under this section. The tax base, including exemptions to, 23 definitions for, and sourcing rules for a tax authorized under this section, must be 24 identical to that provided in AS 43.44. 25 * Sec. 12. AS 29.45 is amended by adding a new section to read: 26 Sec. 29.45.655. Specific taxes on property and services. A borough may levy 27 and collect specific sales or excise taxes on single categories of tangible or intangible 28 property or services, such as bed taxes, car rental taxes, liquor taxes, cigarette taxes, 29 motor fuel taxes, and fish taxes. 30 * Sec. 13. AS 29.45.660(a) is amended to read: 31 (a) If the borough levies [AND COLLECTS] only a general sales tax and use
01 tax, the assembly shall provide a notice substantially in the form set out in 02 AS 29.45.020. In providing notice under this subsection, the assembly shall substitute 03 for the millage equivalency its estimate of the equivalent sales tax rate for each of the 04 categories of financial assistance set out in AS 29.45.020. Notice shall be provided on 05 the Internet website of the borough and 06 (1) by publishing in a newspaper of general circulation in the borough 07 a copy of the notice once each week for a period of three successive weeks, with 08 publication to occur not later than 45 days after the final adoption of the borough's 09 budget; or 10 (2) if there is no newspaper of general circulation in the borough, by 11 posting a copy of the notice for at least 20 days in at least two public places in the 12 borough, with posting to occur not later than 45 days after the final adoption of the 13 borough's budget. 14 * Sec. 14. AS 29.45.700 is repealed and reenacted to read: 15 Sec. 29.45.700. Power of levy. A city may levy a sales and use tax in the 16 manner provided for boroughs under AS 29.45.650 - 29.45.660 and subject to the 17 same limitations. 18 * Sec. 15. AS 29.45.750(b) is amended to read: 19 (b) A municipality that levies [AND COLLECTS] a sales tax on mobile 20 telecommunications services shall do so in accordance with the provisions of 4 U.S.C. 21 116 - 126 (Mobile Telecommunications Sourcing Act). 22 * Sec. 16. AS 29.45.810(a) is amended to read: 23 (a) A party to a contract approved by the legislature as a result of submission 24 of a proposed contract developed under AS 43.82 or as a result of acts by the 25 legislature in implementing the purposes of AS 43.82, and the property, gas, products, 26 and activities associated with the approved qualified project that is subject to the 27 contract, are exempt, as specified in the contract, from all taxes identified in the 28 contract that would be levied [AND COLLECTED] by a municipality under state law 29 as a consequence of the participation by the party in the approved qualified project. 30 * Sec. 17. AS 43.05.240(a) is amended to read: 31 (a) A taxpayer aggrieved by the action of the department in fixing the amount
01 of a tax or penalty or the revocation or suspension of a seller's permit or a resale 02 exemption certificate issued under AS 43.44.090 or 43.44.110 may apply to the 03 department within 60 days after the date of mailing of the notice required to be given 04 to the taxpayer by the department, giving notice of the grievance, and requesting an 05 informal conference to be scheduled with an appeals officer. The taxpayer shall be 06 given access to the taxpayer's file in the department in the matter for preparation for 07 the informal conference. At the informal conference, the taxpayer may present to the 08 appeals officer arguments and evidence relevant to the amount of tax or penalty due 09 the state. If the department determines that a correction is warranted, the department 10 shall make the correction. 11 * Sec. 18. AS 43 is amended by adding a new chapter to read: 12 Chapter 44. Sales and Use Tax. 13 Article 1. Levy and Collection of the Tax. 14 Sec. 43.44.010. Levy of sales and use tax. (a) A sales tax of two percent of the 15 sales price is levied on the 16 (1) sale or lease of tangible personal property; or 17 (2) sale of services. 18 (b) A use tax of two percent of the sales price is levied on the person using 19 (1) tangible personal property acquired on or after July 1, 2022, and 20 (A) acquired outside this state as the result of a transaction that 21 would have been subject to the sales tax had it occurred in this state; or 22 (B) acquired by a purchaser for a use that was exempt under 23 AS 43.44.070 but later converted to a use that is subject to sales tax; or 24 (2) services in this state that would be subject to a sales tax if 25 purchased in this state. 26 Sec. 43.44.020. Collection of municipal sales and use tax by the 27 department. The department shall collect municipal sales and use taxes levied under 28 AS 29.45.650 or 29.45.700 and remit the proceeds to the municipality. The provisions 29 of AS 43.05 and AS 43.10 apply to the enforcement and collection of sales and use 30 taxes levied under AS 29.45.650 or 29.45.700. 31 Sec. 43.44.030. Collection of sales tax by sellers; use tax responsibility. (a)
01 The tax described in AS 43.44.010(a) is imposed on the purchaser. However, a seller 02 shall collect the tax and pay the tax to the department as provided in AS 43.44.170. A 03 seller shall hold all taxes collected in trust for the state. A seller shall apply the tax to 04 the sales price. 05 (b) The purchaser of property or services subject to the tax described in 06 AS 43.44.010(b) is responsible for payment of the tax at the time of the first use of the 07 property or service in the state. 08 Sec. 43.44.040. Value, timing. (a) If a sales price is less than the value of 09 property or a service purchased or if a sale did not occur but tax is due under this 10 chapter, the use tax shall be imposed on the untaxed value of the property or service. 11 (b) The sales price of property or a service must be determined at the time of 12 acquisition, introduction into this state, or conversion to use, whichever is latest. 13 Sec. 43.44.050. Separate statement of tax; no advertising to absorb or 14 refund tax. (a) If a seller collects a tax in excess of the tax imposed by 15 AS 43.44.010(a), the seller shall remit the excess to the department. 16 (b) A seller collecting the tax imposed by AS 43.44.010(a) shall separately 17 state the sales tax for all sales, except for sales from vending machines, sales of drinks 18 in a bar, sales from street vending carts, games of chance, admission fees, taxi fares, 19 and other sales determined by regulation by the department. 20 (c) A seller may not advertise, hold out, or state to the public or to a customer 21 that the person will absorb or refund the tax imposed by AS 44.43.010(a). 22 Sec. 43.44.060. Liability of user for payment of use tax. A person in this 23 state who uses property subject to the tax under this chapter is liable to the state for 24 payment of the tax on the sales price of the property if the tax has not been paid. The 25 liability imposed by this section is discharged when the person pays the sales or use 26 tax to the seller for payment to the department. 27 Article 2. Exemptions. 28 Sec. 43.44.070. Exemptions. (a) A sale by, sale to, or use by 29 (1) the United States is exempt from a tax imposed under this chapter; 30 (2) the state or an instrumentality of the state, as that term is defined in 31 AS 39.52.960, is exempt from a tax imposed under this chapter; this paragraph does
01 not apply to a municipality, an unincorporated community, an Indian tribe included on 02 the list published under 25 U.S.C. 5131, or a foreign government; in this paragraph, 03 "unincorporated community" means a place that is not incorporated as a city and in 04 which 25 or more persons reside as a social unit; 05 (3) a corporation that is exempt from taxation under 26 U.S.C. 06 501(c)(3) (Internal Revenue Code) is exempt from a tax imposed under this chapter 07 unless the property or service is used in the generation of unrelated business taxable 08 income as defined in 26 U.S.C. 512; 09 (4) a municipality is exempt from a tax imposed under this chapter, 10 except that sales by utilities are not exempt under this subsection. 11 (b) A sale of a state license or permit is exempt from a tax imposed under this 12 chapter. 13 (c) Union dues paid to an organization that is exempt from taxation under 26 14 U.S.C. 501(c)(5) (Internal Revenue Code) are exempt from a tax imposed under this 15 chapter. 16 (d) A sale of food for human consumption off the premises where the food is 17 sold is exempt from the sales tax and use tax. The exemption in this subsection does 18 not apply to prepared foods sold by a business if more than 50 percent of food sold by 19 the business is consumed on premises. In this subsection, "food" 20 (1) means a substance, whether in liquid, concentrated, solid, frozen, 21 dried, or dehydrated form, that is sold for ingestion or chewing by humans and is 22 consumed for its taste or nutritional value; 23 (2) does not include alcoholic beverages, tobacco, marijuana, or 24 products containing marijuana. 25 (e) The following intangible items are exempt from a tax imposed under this 26 chapter: 27 (1) wages, salaries, commissions, tips, and any other form of 28 remuneration for personal services if paid by an employer to an employee; the terms 29 used in this paragraph have the meanings given in 26 U.S.C. 3121 (Internal Revenue 30 Code); 31 (2) interest on money loaned or deposited;
01 (3) dividends or interest from stocks, bonds, or securities; 02 (4) proceeds from the sale of stocks, bonds, or securities; and 03 (5) other intangible items designated by regulation. 04 (f) The following fees or charges related to financial services are exempt from 05 a tax imposed under this chapter: 06 (1) fees for services associated with a deposit account; 07 (2) fees for purchases of cashier's checks, money orders, traveler's 08 checks, currency, and similar products used for payment and transfer of funds; 09 (3) loan fees or charges; 10 (4) service charges related to the sale or purchase of financial 11 instruments including stocks, bonds, and securities; and 12 (5) other financial services, fees, or charges designated by regulation. 13 (g) An isolated or occasional sale or lease of property or the performance of a 14 service by a person who is not regularly engaged in the business of selling or leasing 15 that type of property or service is exempt from a tax imposed under this chapter. 16 Occasional sales include sales that are not continuous and that are made for the 17 purpose of fundraising by a nonprofit organization. 18 (h) Personal or household effects brought into the state for the establishment 19 by the individual of an initial residence in the state and the use by a nonresident of 20 property brought into the state for the nonresident's own nonbusiness use while 21 temporarily in the state are exempt from a tax imposed under AS 43.44.010(b). 22 (i) A sale for resale and the cost of transportation associated with a sale for 23 resale is exempt from a tax imposed under this chapter if the purchaser presents, at the 24 time of the sale, a resale exemption certificate issued under AS 43.44.110 and the 25 resale will be 26 (1) made in the ordinary course of business of the reseller; and 27 (2) subject to the tax imposed under AS 43.44.010(a). 28 (j) Services among affiliated persons that report their income under 26 U.S.C. 29 (Internal Revenue Code) on a single consolidated return are exempt from a tax 30 imposed under this chapter. 31 (k) A transaction between the holders of a joint interest, or between the
01 partners in a business partnership, is exempt from a tax imposed under this chapter. 02 (l) The sale, lease, or construction of real property is exempt from a tax 03 imposed under this chapter. For purposes of this subsection, the sale or transportation 04 of tangible personal property that is later converted to real property is taxable under 05 this chapter unless the conversion is part of the construction of real property or 06 construction of an addition to real property. 07 (m) Fuel sold for use in jet propulsion aircraft operating in flights to or from 08 foreign countries is exempt from a tax imposed under this chapter. 09 (n) Insurance premiums subject to the tax imposed under AS 21.09.210 are 10 exempt from a tax imposed under this chapter. 11 (o) The transport, handling, storage, drayage, packing, or other related service 12 of property is exempt from a tax imposed under this chapter if the property is being 13 transported in interstate or foreign commerce. 14 (p) The following health care services and related items are exempt from a tax 15 imposed under this chapter: 16 (1) health care services provided by a person licensed or certified to 17 provide those services under AS 08 or by a health care facility as defined in 18 AS 08.68.700(g); 19 (2) drugs, durable medical equipment, mobility enhancing equipment, 20 and prosthetic devices prescribed by a person licensed to prescribe those goods under 21 AS 08 or obtained from a health care facility as defined in AS 08.68.700(g). 22 (q) Child care services are exempt from a tax imposed under this chapter. 23 (r) Feminine hygiene products are exempt from a tax imposed under this 24 chapter. In this subsection, "feminine hygiene products" means tampons, panty liners, 25 menstrual cups, sanitary napkins, and other similar tangible personal property 26 designed for feminine hygiene in connection with the human menstrual cycle. 27 (s) Heating oil is exempt from a tax imposed under this chapter. 28 Article 3. Credits, Tax Collection and Payment, Seller's Permit, Resale Exemption. 29 Sec. 43.44.080. Tax credit for sales or use tax paid to another state. A 30 purchaser liable for sales or use tax on tangible personal property or services is 31 entitled to a full credit for the amount of sales or use tax paid to another state on the
01 tangible personal property or services. 02 Sec. 43.44.090. Seller's permit. (a) Before engaging in business in this state, a 03 person shall obtain a seller's permit. 04 (b) An application for a seller's permit must be on a form or in a format 05 prescribed by the department and must set out the name under which the applicant 06 intends to transact business, the location of the applicant's place or places of business, 07 and other information that the department may require. If the owner is 08 (1) a natural person, the owner shall file the application; 09 (2) an association or partnership, a member or partner shall file the 10 application; 11 (3) a corporation, a person authorized to sign the application shall file 12 the application. 13 (c) If the person has more than one place of business, an application may 14 include multiple locations. A vending machine operator who has more than one 15 vending machine location is considered to have only one place of business for 16 purposes of this section. An applicant who does not have a single place of business 17 and who moves from place to place is considered to have only one place of business 18 and shall attach the seller's permit to the applicant's cart, stand, truck, or other 19 merchandising device. 20 (d) The department shall issue to an eligible applicant a numbered seller's 21 permit that the person may use in paper or electronic form. A seller's permit is valid 22 until revoked or suspended and is not assignable. A seller's permit is valid only for the 23 person in whose name the permit is issued. A copy of the seller's permit must be 24 conspicuously displayed at all times at the place of business for which the permit is 25 issued. 26 Sec. 43.44.100. Exempt resales. Sales for resale are exempt from the tax 27 under this chapter. A person making a sale for resale must have an exemption 28 certificate issued under AS 43.44.110 and must present the certificate at the time of 29 the sale for resale. In this section, "sale for resale" means the sale of tangible personal 30 property to a buyer whose principal business is the resale of property, whether in the 31 same or an altered form.
01 Sec. 43.44.110. Resale exemption certificate. (a) The department shall issue a 02 resale exemption certificate to a person that has obtained a seller's permit under 03 AS 43.44.090. The resale exemption certificate must be in both paper and electronic 04 form. 05 (b) The resale exemption certificate must include 06 (1) the number of the seller's permit issued to the person as provided in 07 AS 43.44.090; 08 (2) the general character of property or service sold by the person in 09 the regular course of business; 10 (3) the name and address of the person; and 11 (4) the signature or electronic signature of the person. 12 (c) The department may prescribe the format for a resale exemption 13 certificate. 14 Sec. 43.44.120. Revocation or suspension of a seller's permit or resale 15 exemption certificate. (a) The department may revoke or suspend a seller's permit or 16 resale exemption certificate, or both the seller's permit and resale exemption 17 certificate, held by a person who fails to comply with the provisions of this chapter. 18 (b) A person aggrieved by a decision of the department to revoke or suspend a 19 seller's permit or resale exemption certificate under (a) of this section may appeal the 20 decision under AS 43.05.240 - 43.05.430. 21 (c) If a seller's permit or resale exemption certificate is revoked, the 22 department may not issue a new seller's permit or resale exemption certificate except 23 upon application accompanied by reasonable evidence of the intention of the applicant 24 to comply with the provisions of this chapter. The department may, as a condition for 25 the issuance of a new seller's permit to the applicant, require security in addition to 26 that authorized by AS 43.44.210 in an amount reasonably necessary to ensure 27 compliance with this chapter. 28 Sec. 43.44.130. Improper use of purchase obtained with resale exemption 29 certificate; penalty. A person who intentionally uses a resale exemption certificate 30 for property that is used for purposes other than the purpose claimed is subject to a 31 penalty, payable to the department, of $100 or 100 percent of the tax due, whichever is
01 greater, for each transaction in which an improper use of the resale exemption 02 certificate has occurred. The penalty under this subsection is in addition to tax, 03 interest, or other penalties due. 04 Sec. 43.44.140. Commingling resale exemption certificate property. If a 05 person uses a resale exemption certificate for the purchase of tangible personal 06 property and commingles that property with property that was not purchased with a 07 resale exemption certificate but that is so similar that the identity of the property in the 08 commingled mass cannot be determined, sales from the mass of commingled property 09 are considered to be sales of the property purchased with the resale exemption 10 certificate until the quantity of commingled property sold equals the quantity of 11 property originally purchased under the resale exemption certificate. 12 Sec. 43.44.150. Liability for payment of tax. (a) Liability for the payment of 13 a tax imposed under this chapter is not extinguished until the taxes have been paid to 14 the department. 15 (b) A seller is liable for the tax due under this chapter on all property sold and 16 services provided in this state in accordance with this chapter and may be required to 17 furnish adequate security as provided in AS 43.44.210 to ensure collection and 18 payment of the taxes. 19 Sec. 43.44.160. Method of accounting. A person who has a seller's permit 20 shall report and pay the tax due under this chapter using the same method of 21 accounting that the person uses for federal tax purposes. 22 Sec. 43.44.170. Returns: payment. A seller responsible for collecting the 23 sales tax due under AS 43.44.010(a) shall file a return on a form or in a format 24 prescribed by the department and pay the tax due monthly. The seller shall file the 25 return and pay the tax on or before the last day of the month following the month for 26 which the tax is due. A person responsible for a use tax under AS 43.44.010(b) that 27 has not been collected shall file a return and pay the tax within one month of the tax 28 becoming due. 29 Sec. 43.44.180. Methods. (a) The department shall adopt regulations providing 30 a rounding method for payment of a tax imposed under this chapter. 31 (b) The department may use sampling principles or methods instead of
01 examining 100 percent of records in conducting an audit of a return filed under 02 AS 43.44.170. 03 Sec. 43.44.190. Deduction for bad debts. (a) A person filing a return under 04 AS 43.44.170 may deduct sales found to be worthless. The bad debt may be deducted 05 when it 06 (1) is written off as uncollectable in the person's books and records; 07 and 08 (2) qualifies as a deduction for federal income tax purposes under 26 09 U.S.C. (Internal Revenue Code). 10 (b) If the amount of bad debt exceeds the amount of taxable sales or leases 11 during the period that the bad debt is written off, a person may file a refund claim with 12 the department. 13 (c) If a bad debt deducted under (a) of this section is later collected, the person 14 who claimed the deduction shall pay the tax levied under AS 43.44.010 on the amount 15 collected. For purposes of this section, a payment made on a debt or account is applied 16 first to the sales price of the property or service, then to interest, service charges, and 17 any other charges. 18 Sec. 43.44.200. Timely filing allowance. (a) A person filing a return under 19 AS 43.44.170 may claim an allowance in the amount of one percent of the tax or $75 a 20 month, whichever is less, if the return is timely filed and the tax is timely paid. 21 (b) The allowance under (a) of this section may be deducted on the return. 22 Sec. 43.44.210. Security: limitations; sale of security deposit at auction; 23 bond. (a) The department may require a seller to deposit with the department security 24 in a form and amount that the department determines is appropriate. The deposit may 25 not be more than twice the estimated average tax liability under this chapter for the 26 period for which the return is required under AS 43.44.170 to be filed or $10,000, 27 whichever is less. The department may increase or decrease the amount of security, 28 subject to the limitations provided in this section. 29 (b) The department may sell at public auction property deposited as security to 30 recover a tax amount required to be collected under this chapter, including interest and 31 penalties. Notice of the sale must be sent at least 30 days before the sale by certified
01 mail to the last known address of the person who deposited the security. After the sale, 02 any surplus above the amount due that is not required as security under this section 03 must be returned to the person who deposited the security. 04 (c) Instead of security, the department may require a seller to file a bond to 05 guarantee solvency and responsibility issued by a surety company authorized to 06 transact business in this state. 07 (d) In addition to the other requirements of this section, the department may 08 require the corporate officers, directors, or shareholders of a seller corporation to 09 provide a personal guaranty and assumption of liability for the payment of the tax due 10 under this chapter. 11 Sec. 43.44.220. Quitting business; liability of successor. (a) Within 10 days 12 after a person quits business, sells, exchanges, or otherwise transfers the business, or 13 disposes of the complete stock of goods of the business, the person shall file a return 14 and pay the taxes due under this chapter. 15 (b) Except as provided in (d) of this section, a successor in a business or stock 16 of goods is liable for the payment of the full amount of tax and shall withhold from the 17 sales price payable to the predecessor a sum sufficient to pay any tax due until the 18 predecessor produces either a receipt from the department showing payment in full of 19 any tax due or a statement from the department that tax is not due. 20 (c) If a tax is due but has not been paid as provided in (a) of this section, the 21 successor is liable for the payment of the full amount of tax. The payment of the tax 22 by the successor is considered to be a payment on the sales price and, if the payment is 23 greater in amount than the sales price, the amount of the difference becomes a debt 24 due to the successor from the taxpayer owing the tax under (a) of this section. 25 (d) A successor is not liable for any tax due under this section if the successor 26 gives written notice to the department of the acquisition and the department does not 27 issue an assessment against the predecessor within six months after receipt of the 28 notice from the successor. If the department issues an assessment and a copy of the 29 assessment is not mailed to the successor, the successor is not liable for the tax due. 30 (e) In this section, "predecessor" means a person that quits business, sells, 31 exchanges, or otherwise transfers the business, or disposes of the complete stock of
01 goods of the business. 02 Sec. 43.44.230. Tax as debt. (a) The tax imposed by this chapter and related 03 interest and penalties become a personal debt of a person required to file a return 04 under AS 43.44.170 or a person required by the department to personally guarantee 05 the payment of taxes under this chapter from the time the liability arises, regardless of 06 when the time for payment of the liability occurs. 07 (b) If the personal representative of an estate has voluntarily distributed the 08 assets held in that capacity without reserving sufficient assets to pay the taxes due 09 under this chapter and interest and penalties resulting from taxes due under this 10 chapter, the personal representative is personally liable for the taxes, interest, and 11 penalties, to the extent permitted under AS 13.16. 12 (c) An officer or employee of a corporation whose duty it is to collect, 13 truthfully account for, and pay to the state the taxes imposed by this chapter and who 14 fails to pay the taxes is liable to the state for the taxes imposed by this chapter and the 15 penalty and interest due on the taxes. 16 Article 4. General Provisions. 17 Sec. 43.44.250. Authority to enter Streamlined Sales and Use Tax 18 Agreement. (a) The department shall enter into the Streamlined Sales and Use Tax 19 Agreement. To further the purposes of the Streamlined Sales and Use Tax Agreement, 20 the department may act jointly with other states that are members of the Streamlined 21 Sales and Use Tax Agreement to establish standards for certification of a certified 22 service provider and certified automated system and establish performance standards 23 for multistate sellers. 24 (b) The department shall adopt regulations to implement this chapter 25 consistent with the Streamlined Sales and Use Tax Agreement. 26 (c) The department may take other actions reasonably required to implement 27 this section. 28 (d) The department or the department's designee may represent this state 29 before the other states that are signatories to the Streamlined Sales and Use Tax 30 Agreement. 31 Sec. 43.44.260. Electronic registration, filing, and forms. (a) The
01 department may participate in any electronic sales and use tax registration system 02 made available in cooperation with other states through the Streamlined Sales and Use 03 Tax Agreement. 04 (b) The department may use and accept a standard electronic exemption form 05 made available in cooperation with other states through the Streamlined Sales and Use 06 Tax Agreement. 07 (c) The department may prescribe and provide for the use of forms, 08 certificates, permits, and other documents required under this chapter in electronic 09 format, including the use of electronic signatures and authentications, and for 10 electronic filing. 11 Sec. 43.44.300. Definitions. In this chapter, 12 (1) "electronic signature" has the meaning given in AS 09.80.190; 13 (2) "engage in business" means carrying on or causing to be carried on 14 an activity with the purpose of direct or indirect benefit; 15 (3) "lease" or "leasing," regardless of whether a transaction is 16 characterized as a lease or rental under generally accepted accounting principles, 26 17 U.S.C. (Internal Revenue Code), AS 45.01 - AS 45.08, AS 45.12, AS 45.14, and 18 AS 45.29 (Uniform Commercial Code), or other provisions of federal, state, or local 19 law, 20 (A) means 21 (i) a transfer of possession or control of tangible 22 personal property for a fixed or indeterminate term for consideration; a 23 lease may include future options to purchase; 24 (ii) an agreement covering motor vehicles and trailers if 25 the amount of consideration may be increased or decreased by 26 reference to the amount realized upon sale or disposition of the 27 property as defined in 26 U.S.C. 7701(h)(1); 28 (B) does not include 29 (i) a transfer of possession or control of property under 30 a security agreement or deferred payment plan that requires the transfer 31 of title upon completion of the required payments;
01 (ii) a transfer of possession or control of property under 02 an agreement that requires the transfer of title upon completion of 03 required payments if payment of an option price does not exceed the 04 greater of $100 or one percent of the total required payments; or 05 (iii) the provision of tangible personal property along 06 with an operator for a fixed or indeterminate period if the operator is 07 necessary for the equipment to perform as designed, and the operator 08 must do more than maintain, inspect, or set up the tangible personal 09 property; 10 (4) "sales price" 11 (A) means the total amount of cash, credit, property, services, 12 and other consideration, for which personal property or services are purchased, 13 sold, or leased, valued in money, whether received in money or otherwise, 14 without any deduction for the following: 15 (i) the seller's cost of the property sold; 16 (ii) the cost of materials used, labor or service cost, 17 interest, losses, all costs of transportation to the seller, all taxes 18 imposed on the seller, and any other expense of the seller; 19 (iii) charges by the seller for any services necessary to 20 complete the sale, other than delivery and installation charges; 21 (iv) delivery charges; 22 (v) installation charges; 23 (vi) the value of exempt personal property given to the 24 purchaser where taxable and exempt personal property have been 25 bundled together and sold by the seller as a single product or piece of 26 merchandise; 27 (B) does not include 28 (i) discounts, including cash, term, or coupons that are 29 not reimbursed by a third party that are allowed by a seller and taken by 30 a purchaser on a sale; 31 (ii) interest, financing, and carrying charges from credit
01 extended on the sale of personal property or services if the amount is 02 separately stated on the invoice, bill of sale, or similar document given 03 to the purchaser; and 04 (iii) taxes legally imposed directly on the consumer that 05 are separately stated on the invoice, bill of sale, or similar document 06 given to the purchaser; 07 (5) "service" means an activity that is engaged in for another person 08 for consideration but that is not the sale or lease of property; 09 (6) "tangible personal property" means personal property that can be 10 seen, weighed, measured, felt, or touched, or that is in another manner perceptible to 11 the senses; 12 (7) "use" or "using" includes use, consumption, or storage, but does 13 not include storage for resale or for use solely outside this state in the ordinary course 14 of business. 15 * Sec. 19. AS 44.64.030(a) is amended by adding a new paragraph to read: 16 (52) AS 43.44 (sales and use tax). 17 * Sec. 20. AS 29.45.650(f), 29.45.650(h), 29.45.650(i), 29.45.650(j), and 29.45.650(k) are 18 repealed. 19 * Sec. 21. Section 4, ch. 100, SLA 2002, as repealed and reenacted by sec. 9, ch. 117, SLA 20 2003, and sec. 2, ch. 30, SLA 2005, is repealed and reenacted to read: 21 Sec. 4. AS 29.45.650(a) is amended to read: 22 (a) Except as provided in AS 04.21.010(c) [AND AS 29.45.750], a borough 23 may levy a general sales tax on the sale and rental of tangible or intangible property 24 and on services provided in the borough. The borough may only levy sales tax on a 25 purchaser. 26 * Sec. 22. The uncodified law of the State of Alaska is amended by adding a new section to 27 read: 28 TRANSITIONAL PROVISIONS. (a) The Department of Revenue may adopt 29 regulations necessary to implement this Act. The regulations take effect under AS 44.62 30 (Administrative Procedure Act), but not before the effective date of the provision being 31 implemented.
01 (b) Notwithstanding AS 29.45.650(c), as repealed and reenacted by sec. 11 of this 02 Act, a municipality that imposes a general sales and use tax is not required to conform its tax 03 base, including exemptions, definitions, and sourcing rules, to AS 43.44, added by sec. 18 of 04 this Act, until July 1, 2022. 05 (c) Services under a contract executed and paid in full before the effective date of sec. 06 18 of this Act and performed within 12 months after the effective date of sec. 18 of this Act 07 are exempt from the sales tax and use tax. 08 (d) A person may apply for, and the Department of Revenue may issue, a seller's 09 permit under AS 43.44.090 or a resale exemption certificate under AS 43.44.110 before the 10 effective date of sec. 18 of this Act to be effective on or after the effective date of sec. 18 of 11 this Act. 12 * Sec. 23. Section 22 of this Act takes effect immediately under AS 01.10.070(c). 13 * Sec. 24. Except as provided in sec. 23 of this Act, this Act takes effect July 1, 2022.