Who must register
Any person, firm, or business entity must register with the sales tax administrator before making sales, rendering services, or making rentals within the City and Borough of Juneau.
Collecting Sales Tax
All merchants are required to collect sales tax at the time of purchase, at the rate of 5% on the sales of all goods, all services and all non-residential rentals. (Rentals include commercial real property & tangible personal property.)
An additional tax of 3% will be collected on all sales of alcoholic beverages; this means these beverages, in whatever form, are taxed at the rate of 8%.
An additional tax of 7% will be collected on all room rentals (stays of less than 30 days duration); this means hotel/motel/Bed 8; Breakfast rooms, are taxed at the rate of 12%.
Under the sales tax ordinance there are 37 exemptions from the sales tax. It is the responsibility of the “buyer” to provide proper documentation that the sale would be exempt from the sales tax. It is the merchant’s responsibility to document the exempt transaction.
Reporting Requirements (CBJ 69.05.170)
Filing of Tax Returns and Payment of Tax — Every seller of goods or provider of services or rentals must file a return for each reporting period regardless of the level of sales or the amount of tax due.
The return forms will be mailed to each business before the end of each quarter. However, merchants will not be excused from filing a return if no form has been furnished. Merchants should obtain proper forms in ample time to report and remit within the time prescribed by Sales Tax ordinances.
Report is Required — Even if your business has not transacted any business, made any sales and received any business income, you are required to file a timely tax report.
A late fee, of $25, will be assessed on all late returns the post mark date will determine timely filed return; even if you have not transacted any business.
Returns Due — Quarterly tax reports are due the last day of the month following the end of each calendar quarter. If the last day of the month falls on a weekend or holiday the deadline is extended to the next business day.
Deposits — If your business collects more than $1,000 in sales tax, in a one-month period, you are required to deposit the estimated sales tax by the fifteenth of the following month. If the fifteenth of the following month is on a weekend or holiday the deposit is due on the following business day. The deposits are in addition to the quarterly sales tax filings not in place of them. Merchants who deposit all monies due are still required to file a quarterly sales tax return, when due, to be considered timely.
Closing your account — A final sales tax report must be filed within 15 days of closing.
Failure to File — $25 late filing fee applies even if sales are zero.
Method of Accounting — Merchants are required to use the same basis of accounting for sales tax purposes, cash or accrual as used for reporting your federal income tax.
Record Keeping & Auditing (69.05.090)
Supporting records must be maintained for a period of three years. Failure to maintain adequate records to support exemptions claimed will result in the loss of deduction for that particular transaction. A seller shall make available for review all relevant records, books and other documents upon request by the Sales Tax Auditor.
Changes in Address or Ownership
Changes in Address or Ownership — Please notify the Sales Tax Office of any changes to the information provided on the registration form. This will ensure timely mailings and data integrity.
Termination of the Business — A final sales tax report must be filed within 15 days of closing.
Sale of Business — Successor liability (69.05.130). The seller must file a final return within 15 days of the sale. The buyer will be liable for any unpaid tax, penalty and interest on account of the business operations of the former owner.
Responsibilities of the Merchant
It is your responsibility to comply with the laws and regulations that pertain to your business environment in which you operate. A copy of the Uniform Sales Tax Code can be obtained from the Sales Tax Office. If you are still uncertain of how the tax applies in general or to specific transactions please call or write the Sales Tax Office.
We appreciate your efforts in collecting and remitting sales tax in compliance with our ordinances. Please contact the Sales Tax office for answers to your questions.