Sales Tax Overview

All business activity within city limits must be licensed by both the State of Alaska and the City of Nome. Once a State of Alaska license has been obtained, business owners must contact the City Clerk to obtain a City of Nome license.

A Sales Tax of 5% of the selling price is levied on all sales and rental of goods and services made in the City of Nome, Alaska. Read more about sales tax liability here: https://bit.ly/3e9a4Xi

Tax must be collected from the customer at the time of sale. Collectors must file tax returns on a monthly basis, unless approved in writing to file quarterly. All taxpayer are required to submit monthly tax returns unless given written permission from the City Clerk's office to file quarterly tax returns. Businesses with average monthly sales less than $5,000 may be eligible for quarterly filings. Call Nome City Clerk’s office at (907) 443-6663 to start your request to file quarterly.

The burden of this tax rests upon the consumer. For more information, click here.

To make paying taxes easier, the City of Nome, Alaska has partnered with Localgov. This service facilitates secure and convenient online filings and payments. Starting January 10^th, 2023, you can now you can pay Sales Tax and Room Tax from the comfort of your home or business, save time, and avoid late fees. If you don’t have a computer, don’t worry. You will still be able to use a public kiosk at City Hall to submit returns and remit sales and room tax.

Localgov offers taxpayers in our community significant advantages, such as:

Automatic calculation of taxes and fees owed.
Secure processing that keeps your data safe.
Multiple payment options, including ACH/EFT drafts, credit and debit card payments.
Payments can be made when you have time—not only during government hours.
No need for paper forms, envelopes, checks, or stamps.
Localgov customer service is here to help.

Localgov offers free one-on-one training sessions:

You may book a one-on-one software training with Localgov Customer Service: https://calendly.com/localgov/localgov-customer-service-meeting.

Set up your online account here: https://tax.localgov.org/login. It takes just a few minutes to get started, set up payments, and stay current with your taxes. If you have any questions or need assistance, please contact Localgov Customer Service at (877) 654-0021 or service@localgov.org.

For information regarding the tax rate, filing qualifications, and penalties, please review the City’s tax information online: https://bit.ly/3AYFqJb, or call the City at (907) 443-6663.

Collection of Tax

A collector/seller shall apply applicable sales tax percentage to the selling price and the sales tax must be added to the selling price or service charge. the tax shall be state separately on all invoices, receipts, and other documents of the sale, showing the tax as a separate and distinct item. A collector/seller is responsible for levying the correct sales tax for the appropriate months. Collectors/Sellers must complete and file tax returns and remit the tax collected in accordance on a monthly basis.

The collectors must prepare and submit, on or before the 20^th calendar day of the month immediately following the month in which the collection is made, a return on all gross receipts for the reporting period, including all taxable and non-taxable transactions; the dollar amount and exemption certificate identification number for each exempted transaction; the dollar amount, exception type and name of business. The returns must be submitted through Localgov 5:00 p.m. on or before the 20^th calendar day of the month following the month in which the collection is made.

If no sales tax is collected, a zero return must be filed. All taxes, penalties, and interest due shall be remitted with the sales tax form.

Reports must be made using using the Localgov sales and room tax platform.

Penalty and Interest

If the taxes are not paid when due and become delinquent, a penalty of 5% of the delinquent tax will be added to the delinquent tax for the first month, or any part thereof, 10% for delinquency in excess of one month, 15% for delinquency of three months or more. In addition to the penalty, interest assessed on delinquent tax will accrue at the rate of 15% per year. Interest will accrue from the date of delinquency until paid in full.

The penalty for late filing of a zero return will be $25.00.

For more information about Alaska's State Tax laws and regulations, please click here.

For more information about City of Nome Sales Tax, click here

Exemptions and Exceptions

Exceptions are specified in Nome Code of Ordinances and current list of organizations exempt from paying sales tax is provided below.