4.25.040 Exemptions from sales tax – Generally.
The sales tax established by this chapter shall not apply to the following:
(a) Wholesale or resale sales within the City limits as set forth in CCO 4.25.050;
(b) Purchases made by nonprofit or government entities as set forth in CCO 4.25.060;
(c) Retail sales, rents or services which the City is prohibited from taxing by the laws and Constitution of the State of Alaska or by the laws and Constitution of the United States;
(d) Small businesses with annual gross sales of $2,500 or less, which must apply for exempt status on a form provided by the City, which, if approved, will be valid for the calendar year for which the application was made;
(e) Sales of seafood on vessels 46 feet or less length overall (LOA);
(f) Human health care services provided by, and prescription drugs, devices, and supplies prescribed for human use by, a person licensed or certified to provide those services or goods, as applicable, under Alaska Statutes Title 08;
(g) Sales of and subscriptions to newspapers, and subscriptions to periodicals;
(h) Dues or membership fees for nonprofit organizations, except dues paid to a business for the purpose of qualifying or becoming eligible for its goods and services, or discounts to its goods and services, are subject to sales tax;
(i) Retail sales of real property; however, services performed by a real estate broker or agent and renting, leasing of real or personal property, accommodations, facilities or services by persons owning five or more housing units are not exempt under this section;
(j) Receipts of nonprofit schools and student organizations within the schools for extracurricular activities or events;
(k) Financial service transactions. For purposes of this chapter, financial service transactions are limited to: deposit account services, loan transaction fees, transactions relating to the sale or exchange of currency or securities, transactions for conversion or negotiable instruments, safe deposit services, escrow collection services, late fees, overdraft fees, and interest charged on past due accounts;
(l) Sale of passenger seat tickets by an air charter, air taxi, or commercial airline; however, all occupational or recreational services of any nature including ground-based wildlife viewing, sport fishing, hunting or other goods or services provided in combination with such air charter, air taxi or commercial airline are recreational sales not exempt under this section;
(m) Sales of pull-tabs, bingo cards and raffle tickets by charitable organizations licensed by the State;
(n) Title insurance premiums;
(o) Food purchased with coupons issued under the Federal food stamp program;
(p) Construction contracts awarded by a tax exempt entity, or on a subcontract awarded in connection with the project funded under the construction contract;
(q) Retail sales of food are exempt in the following circumstances:
(1) When served in cafeterias or lunchrooms of elementary, secondary, or post-secondary schools, which are operated primarily for students and staff, and are not operated for the public or for profit;
(2) When served to clients and staff, and not to the public or for profit, as part of services provided by a nonprofit hospital or other nonprofit or government organization licensed by the State of Alaska for the care of people;
(3) Meals delivered by a nonprofit organization to handicapped or senior citizens at their place of residence or meals served on the premises of a nonprofit senior citizens’ organization which receives funding from the State of Alaska or a political subdivision of the State; provided, that the sale price of such meals does not exceed the cost of delivery or service of such meals;
(r) Childcare and adult daycare services;
(s) Freight hauling services provided by common carriers, including freight transport by ship, barge, aircraft, rail or motor vehicle. Freight hauling services include the transportation of goods by common carrier that either originate or terminate outside the City. However, storing for use of consumption of any item or article or personal property is not exempt under this section. [Ord. 19-06 § 2, 2019.]