Alaska has no state sales tax, but some municipalities and local jurisdictions do. You’ll need to contact those local offices to find out the procedure for getting a resale certificate and a sales tax permit in your jurisdiction. In a few states, a seller’s permit, or sales tax permit, also serves as a resale certificate that applies to all vendors.
A resale certificate allows Alaska small business owners to purchase materials or goods and sell goods and services to other business entities at wholesale. In addition, a resale certificate is required for renting or leasing properties to others. The certificate allows you to buy items without paying sales tax that you will be reselling and assumes the goods will be resold and the sales tax will be paid by the end consumer.
Seller’s Permit and Sales Tax
Do You Need a Seller’s Permit in Alaska?
Most businesses operating in or selling to Alaska residents are required to purchase a resale certificate annually to collect sales tax. Businesses can use the MTC Uniform Sales & Use Tax Resale Certificate form presented to suppliers for sales tax-free purchases in Alaska. Note that Alaska accepts out-of-state seller IDs, allowing residency-based businesses to use an out-of-state ID on the form.
Is There a Sales Tax Exemption in Alaska?
While Alaska has no statewide sales tax, local jurisdictions may charge up to 7.5 percent. As of January 2009, 108 jurisdictions collect sales tax.
The resale certificate allows you to conduct tax-free purchases of items meant for resale. This also applies to online businesses shipping products to Alaska residents, who must collect sales tax. Non-Alaska businesses can still use an out-of-state ID to engage in tax-free transactions with the uniform resale certificate form.