1) Why do I need a City of Wasilla Business License?
For the privilege of engaging in any business in
the city, a person shall first apply to do so, and pay
the $25 fee. A license issued to a firm for a particular line of
business covers all its operations in the city in that line of business
regardless of the number of establishments. Nonprofit organizations are required to obtain a
city business license and pay the license fee
as provided for in WMC 6.04.040.A.
2)
Do I need any other licenses to do business in Wasilla city limits?
Yes.
The State of Alaska and the Matanuska-Susitna Borough require that
all businesses be in compliance with their statutes. The Finance
Department has the State and Borough license applications on hand
but we do not process them in our office. They are processed at
their respective addresses listed on the applications.
3)
How long is the City of Wasilla business license good for?
The
license is valid through December 31st of each calendar year.
4)
Do I have to display the city license?
The
city license shall be displayed prominently at the place of business;
any seller who has no regular place of business shall display such
license upon request.
5)
If I sell my business can I transfer the license to the new owner?
No.
Licenses are non-transferable. Along that same line, if you close
a business you are required to surrender your license to the city
and report the closure.
6)
If it is close to the end of the calendar year will I have to obtain
a new license the following year?
Newly
established businesses applying for a city business license after
December 1st, each year, will be issued a license valid through
the following calendar year.
7)
If I fail to remit sales tax can I lose my license?
Yes.
The license is automatically suspended when the seller fails to
remit delinquent sales tax, penalty and interest within thirty (30)
days after notice. It is then unlawful for a seller to engage in
business without a current city business license.
8)
Do I have to charge and collect the city sales tax and for what?
Yes.
The city of Wasilla sales tax is imposed and collected pursuant
to the authority granted by Alaska Statutes (Section 29.45.700 et.
Seq.) This sales tax is to be liberally construed to include within
the tax all retail sales, rentals and service activities.
9)
Does everyone get charged sales tax?
Yes.
Everyone is charged sales tax. Only those payers who have evidence
of a current City of Wasilla sales tax exemption, obtained through
the Finance Department at city hall will not be charged. It is in
your best interest to obtain a copy of each exemption that is granted.
10)
What is the most sales tax charged on a sale?
The
City of Wasilla sales tax caps at $12.50. In other words you will
never charge a customer more than $12.50 on any one transaction.
In the case of an ongoing project that is billed monthly, the sales
tax is billed once per month. Commercial rentals follow this same
rule; assuming that the commercial rental is over $500 per month,
the tenant would be charged the $12.50 maximum tax each month.
11)
Can I pay the sales tax myself and not charge the customer?
Only
if you make notice to your customers that the price includes sales
tax.
12)
What if I didn't collect any sales tax during a month?
You
must turn in any and all sales tax report forms that you receive,
either with the payment due or with a zero (0) listed as the amount
due. Make sure you date and sign the return before returning it
to the city. Even reports, where there is no tax to report (zeros),
are subject to the $250 violation should they not be delivered in
a timely manner.
13)
What if I don't pay the city the sales tax I charged my customers?
The
city follows a regular request pattern for the remittance of the
sales tax. Failure to pay may result in the revocation of your business
license. Delinquent sales tax is charged up to a 25% penalty, plus
15% interest, as well as a $250 ordinance violation fee per month
that is not reported. The city employs Cornerstone Credit Services
to its handle collections. In addition, the city can foreclose a
recorded sales tax lien as provided by law.
14)
Can I spend the sales tax that I collect?
No.
Title to sales tax vests in the city upon collection by the seller.
The seller holds the sales tax n trust for the city, and is accountable
to the city therefore.
15)
Does the city ever conduct audits?
Yes.
16)
How are sales tax payments applied?
All payments of sales tax received form a seller owing delinquent
sales tax shall be applied first to accrued penalty, second to accrued
interest, and then to sales tax payments owed by the seller in the
order of their due dates.
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