Sales Tax

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     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.  

SALES TAX OVERVIEW

     Effective May 1st, 2017, a seasonal sales tax of 7% will be levied on all sales and rental of goods and services made in the City of Nome, except as provided in Nome Code of Ordinances (NCO) Section 17.10.020, during the months of May, June, July, and August.

     A sales tax of 5% of the selling price is levied on all sales and rental of goods and services made in the City, except as provided in NCO Section 17.10.020 during the months of September, October, November, December, January, February, March, and April.

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

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 20th 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 received at City Hall by 5:00 p.m. on or before the 20th calendar day of the month following the month in which the collection is made.  In the event that the due date falls on a legal holiday or weekend, the return must be postmarked with sufficient postage on or before the next following business day. 

     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 forms furnished by the City and available at City Hall.

REPORTING FORMS

     Click here for the seller's sales tax form to complete for filing of sales tax. Applications for a City of Nome Business License can be found here.

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 $50.00.

     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

     For the current list of exemptions and exceptions, click here.

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