City Sales Tax – Doing Business

State of Alaska Helpful Links

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 reception@thornebay-ak.gov 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;

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