City Sales Tax

Doing Business in Thorne Bay

 

The City of Thorne Bay welcomes and encourages new business activity as well as supporting our current businesses. The Clerk’s Office staff are available to serve you Monday through Thursday from 9:00 a.m. – 4:00 p.m., and Friday’s from 9:00 a.m. – 12:00 p.m. (with the exception of recognized holidays) at City Hall, 120 Freeman Drive, Thorne Bay, Alaska.

Teri Feibel
City Clerk/Treasurer
cityclerk@thornebay-ak.gov
(907) 828-3380

 

Quick Links to the Thorne Bay Municipal Code Sales Tax and Occupancy Tax:

 

The City of Thorne Bay Tax Rates:
Sales Tax =  6%
Occupancy (Bed) Tax =  4%
The City of Thorne Bay does not assess Property Taxes!!

Sales Tax Forms Here



Forms & Applications

Tax forms are available for download here, or from the City Clerk’s Office in City Hall  at 120 Freeman Drive, Thorne Bay.

Sales tax remittance reminders are emailed quarterly as a courtesy only. 

Each individual or company is responsible for timely submission of tax payments.

To have your name added to the reminder list,  send your email address to:  cityclerk@thornebay-ak.govPlease put in the subject line “sales tax reminder”.


Collecting and Filing Sales Tax

Every sale which is made within the City of Thorne Bay, unless explicitly exempted by Thorne Bay Municipal Code Chapter 3.17.100, or subsequent ordinance, shall be presumed to be subject to the city sales tax of 6% imposed. In the specific instances where the tenant is occupying space in a USDA Forest Service owned building or land, it is the tenant’s obligation to pay the sales tax directly to the City, unless the landlord is willing to voluntarily receive the tax payment and remit to the city. The Landlord shall be responsible for all delinquent or unpaid sales taxes incurred by their tenants.

This requires by law any person or business to register with the City of Thorne Bay City Clerk’s office before making sales, rendering services, or providing rentals within city limits.

Please Note: The City of Thorne Bay also enacts a 4% transient room 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 Thorne Bay 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

Tax Forms/Registrations

Registrations are available in the Clerk’s Office as well as online. Below are forms frequently requested:

Additional forms are available here.

Exempt Sales

All sales made within the City of Thorne Bay are considered taxable unless specifically exempted. All possible exemptions from collection of sales tax are listed in Thorne Bay Municipal Code 3.17.100.

Common exemptions include:

    • Wholesale Registered businesses who do not wish to pay sales tax on items purchased for resale must complete a Resale Exemption Application and submit to the City Clerk’s Office. 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.
    • Gross receipts from sales, services and rentals to any nonprofit organization or nonprofit institution if such organization or institution is organized exclusively for religious, educational, or charitable purposes, and if such organization or institution has obtained a certificate of exemption as provided for in subsection (2) and displays that certificate of exemption as provided for in subsection (3) below. (2) Any organization or institution described in subsection (1) may apply to the City of Thorne Bay revenue collector for a certificate of exemption. Such application shall be made on forms to be furnished by said revenue collector, and each applicant shall be required to furnish such information as said revenue collector may reasonably require. If the revenue collector determines that the applicant is entitled to an exemption provided for in this section, the revenue collector shall issue or cause to be issued a certificate of exemption which shall be effective as of its date of issue. The revenue collector shall endeavor to issue or deny the exemption within thirty days after the date an application is filed; (3) A buyer seeking to make a purchase entitled to a sales tax exemption under subsection (1) shall display a valid certificate of exemption to the seller at the time of purchase. If the buyer does not so display the required valid certificate of exemption the sale is taxable, and the seller shall collect the sales tax due on the sale.
    • Non-profit organizations Are only exempted from paying sales tax on services rendered if they apply for, and receive an exempt certificate from the City of Thorne Bay City Clerks office. 
    • Separately, 501(c)3 non-profits are exempt from paying 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 $7,500.00 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 $7,500.00). 3.17.100 (w).
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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 of Thorne Bay’s City Clerk’s Office posts Requests for Proposals and Bids on construction projects, and other projects within the City of Thorne Bay. On other occasions, Public Works Department or other departments may put out a request for proposal as well

Job Opportunities

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

DOING BUSINESS:

Senior Tax Exempt Cards for Thorne Bay are available for $15.00 (and are valid for two years) through The City of Thorne Bay if certain requirements are met.

The applicant must be 65 years of age or older. A valid Alaska State Driver’s License or valid State of Alaska ID must be presented at time of application as proof of age.

Proof of Alaskan residency must also be presented at time of application. The easiest way to do this is to provide Proof of Receipt of the previous year’s Alaska Permanent Fund Dividend. This needs to be actual receipt of the dividend, not proof that it was applied for. If unable to provide Proof of Receipt, then a combination of 3 of the following may be presented as proof of residency:

  •  Proof of home ownership, a home purchase contract.

  •  Rent receipts or utility receipts – from the previous, continuous 12 months.

  •  Employment records or unemployment records, from the previous, continuous 12 months.

  • A contract to move household goods to Alaska dated more than a year prior.

  • Licensing records such as those for hunting and fishing licenses.

Please call the City of Thorne Bay at (907) 828-3380 or email at reception@thornebay-ak.gov for any questions concerning the application process.

The City of Thorne Bay will be conducting an audit of Sales Tax, starting with the Senior Tax Exemptions.  All business’s are required to submit their records for all senior tax exempt sales made within the 3rd and 4th quarter of 2017.

Full copy of the Sales Tax Audit Notice is available in the link provided below titled “Audit of City Sales Tax for Senior Tax Exempt Records Notice”

Audit of City Sales Tax for Senior Tax Exempt Records NOTICE

Prior Year Sales Tax Audit Information to Businesses and Residents within Thorne Bay

In July of 2017, the City of Thorne Bay began conducting a Sales Tax Audit of records for all businesses operating or conducting business within the Thorne Bay City Limits, and started with the Senior Tax Exemptions.

All business’s were required to submit their records for all senior tax exempt sales made within the 3rd and 4th quarter of 2017.

As of January 8, 2018, the City has identified $6,716.76, of Sales Tax Revenue being incorrectly exempted under the Senior Sales Tax Exemption.

Thank you to all businesses who take the time to ensure your customers are in fact tax exempt, and that you are charging and collecting the Sales Tax owed on all Sales, Services and Rents, received.

Sincerely,

Teri Feibel, CMC

City Clerk/Treasurer