1) 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.
2) 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.
3) 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.
4) 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.
5) 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.
6) 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.
7) 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.
8) 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.
9) Does the city ever conduct audits?
Yes.
10) 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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