Sales Tax

A sales tax is levied on all sales, rents, and services made in the City at the rate of 3% of the selling price. The burden of this tax rests upon the consumer. The tax is not levied on raw seafood products that are taxed separately. The tax on services does not include salaries or wages received by an employee from an employer, but it does include consideration for furnishing labor and materials for accomplishing a specific result. Read Unalaska's Sales Tax Code here.

Collection of Tax

A collector must add the 3% sales tax to the selling price, rent, or service charge showing the tax as a separate and distinct item. Collectors must complete and file tax returns and remit the tax collected on a quarterly basis.

Collectors must, on or before the last day of the month succeeding the end of each quarter year ending March 31, June 30, September 30, and December 31, prepare a return for the preceding quarter year using forms furnished by the City. Tax returns must be filed every quarter even if the reported sales are zero. The returns must be filed personally at City Hall by 5:00 p.m. or postmarked or emailed on the last day of the month following the end of each quarter year. In the event the last day of the month falls on a legal holiday or a weekend, the return may be filed on the first business day following. Electronic signature on the returns is acceptable.

Reports must be made using forms furnished by the City and are available below and at City Hall.

Penalty & interest on past due taxes; and late fee (even for zero returns)

Penalty and Interest on past due taxes: 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, and an additional 5% will be added to the tax due for each month, or fraction thereof, of delinquency until a total penalty of 20% of the sales tax due has accrued. 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.

Late fee: Beginning with 2022 4th Quarter, a $25 per month late filing fee will be assessed for late-filed sales tax reports. This is in addition to penalty and interest on past due sales tax payments.

Exemptions

Certain retail sales are exempt from sales tax. See UCO 6.40.030 for further information. Exemption procedures are set out in UCO 6.40.040, including the issuance of Sales Tax Exemption Certificates. No seller may allow an exemption unless the consumer first obtains a certificate of exemption and presents it to the sller at the time of sale. If a seller fails to properly document exempt sales, the seller may be liable for the tax, interest and penalty.