Sitka Community Profile 2006-2007

City and Borough Taxes

One of the greatest incentives for doing business in Alaska is low taxation. The City and Borough of Sitka imposes the following taxes which are comparatively lower than most cities in Alaska and the lower 48:

Sales Tax  
    April to September 6%
    October to March 5%
Residential rent is exempt from sales tax.  
   
Excise Tax  
On cigarettes 50 mills adjusted annually based on Anchorage CPI
On tobacco products 45% of wholesale price
   
Bed Tax 6%
   
Property Tax 6 mills adjusted by the Assembly every June
   
Property Tax on Vessels  
Class and vessel size Annual property tax
Class 1 less than 15 feet in length $20.00
Class 2 15 to less than 20 feet in length $30.00
Class 3 20 to less than 30 feet in length $50.00
Class 4 30 to less than 50 feet in length $100.00
Class 5 50 or more in length $200.00
   
Fuel Tax  
Sitka Airport fuel flow tax $0.02/gallon

State Taxes

There is no state personal income, sales, gross receipts, inventory, or ad valorem taxes in Alaska. There is a net corporate income tax that is quite competitive with that of other western states.

Corporate Income Tax¹ 1% to 9.4%
Individual Income Tax none
Statewide Sales Tax none
Inheritance Tax      none
Intangible Personal Property Tax none
Motor Fuel Taxes:  
  gasoline, diesel, gasohol  
      highway 8¢/gallon
      marine 8¢/gallon
  aviation gas 4.7¢/gallon

¹ 9.4% is the maximum rate for taxable income $90,000 and over.

For more information about State of Alaska's taxes, check out the Alaska Department of Revenue website.