Tax Forms & Registrations
Registrations are available in the Clerk’s Office as well as online. Below are forms frequently requested:
Doing Business in the City of 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.
City of Thorne Bay
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.
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
Additional forms are available here.
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 from the City of Thorne Bay.
- 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 charging and remitting the 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).
This link has been organized to assist businesses, however, it does not include all of the resources that may be available to you.
Additional Resources & Information:
Thorne Bay Municipal Code – Chapter 3.18 – Transient Occupancy Tax
3.17.110 SALES TAX EXEMPTION FOR THE ELDERLY.
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 email@example.com for any questions concerning the application process.
3.17.100 (x) BUILDING/CONSTRUCTION TAX EXEMPTION PERMIT
Gross receipts in excess of ten thousand dollars derived from sales of material and labor for the clearing of land, excavation, or fill or placement of material on real property for construction of a facility, and sales of building construction materials and labor used in constructing a permanent building within the city, provided that the improvements are constructed pursuant to a valid sales tax exemption permit issued or renewed no more than one year prior to the sale of transaction being exempted from the tax.
Construction materials shall include: all structural and finish materials for a permanent building used on the lot wherein the building is being constructed, and installation of infrastructure to said building such as water, sewer, power and phone and all parts to said infrastructure. Sales, to qualify for this exemption, shall be recorded by the seller, together with the date, the purchaser’s name, and the sales tax exemption permit number. Any purchaser who attempts to avoid paying sales tax by using a sales tax exemption permit number for materials or labor not actually used in the structure for which the permit was issued shall be subject to a civil penalty up to twenty-five percent of the price of the materials or labor involved in the evasive purchase.
The cost of the permit will be six hundred dollars;