4.30.010 Definitions.
For the purpose of this chapter, the following definitions apply:
“Buyer” or “purchaser” means a person to whom a sale of property or product is made or to whom a service is furnished.
“Commission” means the Alaska Remote Seller Sales Tax Commission established by agreement between local government taxing jurisdictions within Alaska, and delegated tax collection authority.
“Delivered electronically” means delivered to the purchaser by means other than tangible storage media.
“Delivery charges” means charges by the seller of personal property or services for preparation and delivery to a location designated by the purchaser of personal property or services including, but not limited to, transportation, shipping, postage, handling, crating and packing.
“Entity-based exemption” means an exemption based on who purchases the product or who sells the product. An exemption that is available to all individuals shall not be considered an entity-based exemption.
“Goods for resale” means:
(1) The sale of goods by a manufacturer, wholesaler or distributor to a retail vendor; sales to a wholesale or retail dealer who deals in the property sold, for the purpose of resale by the dealer.
(2) Sales of personal property as raw material to a person engaged in manufacturing components for sale, where the property sold is consumed in the manufacturing process of, or becomes an ingredient or component part of, a product manufactured for sale by the manufacturer.
(3) Sale of personal property as construction material to a licensed building contractor where the property sold becomes part of the permanent structure.
“Lease” or “rental” means any transfer of possession or control of tangible personal property for a fixed or indeterminate term for consideration. A lease or rental may include future options to purchase or extend.
“Local sale” means a sale by a seller with a physical presence in a taxing jurisdiction, where the point of delivery is a location within the same taxing jurisdiction.
“Marketplace” means a physical or electronic place, platform or forum, including a store, booth, internet website, catalog or dedicated sales software application, where products or services are offered for sale.
“Marketplace facilitator” means a person that contracts with remote sellers to facilitate for consideration, regardless of whether deducted as fees from the transaction, the sale of the remote seller’s property, product, or services through a physical or electronic marketplace operated by the person, and engages:
(1) Directly or indirectly, through one or more affiliated persons in any of the following:
(i) Transmitting or otherwise communicating the offer or acceptance between the buyer and remote seller;
(ii) Owning or operating the infrastructure, electronic or physical, or technology that brings buyers and remote sellers together;
(iii) Providing a virtual currency that buyers are allowed or required to use to purchase products from the remote seller; or
(iv) Software development or research and development activities related to any of the activities described in subsection (2) of this definition, if such activities are directly related to a physical or electronic marketplace operated by the person or an affiliated person; and
(2) In any of the following activities with respect to the seller’s products:
(i) Payment processing services;
(ii) Fulfillment or storage services;
(iv) Setting prices;
(v) Branding sales as those of the marketplace facilitator;
(vi) Order taking;
(vii) Advertising or promotion; or
(viii) Providing customer service or accepting or assisting with returns or exchanges.
“Marketplace seller” means a person that makes retail sales through any physical or electronic marketplace that is operated by a marketplace facilitator.
“Member jurisdiction” means a taxing jurisdiction that is a signatory of the Alaska Remote Seller Sales Tax Agreement, thereby members of the Commission, and who have adopted the Alaska Remote Seller Uniform Sales Tax Code.
“Monthly” means occurring once per calendar month.
“Nonprofit organization” means a business that has been granted tax-exempt status by the Internal Revenue Service.
“Person” means an individual, trust, estate, fiduciary, partnership, limited liability company, limited liability partnership, corporation, or any other legal entity.
“Physical presence” for purposes of CCO 4.30.070 means a seller who establishes any one or more of the following within a member jurisdiction:
(1) Has any office, distribution or sales house, warehouse, storefront, or any other place of business within the boundaries of the member jurisdiction;
(2) Solicits business or receiving orders through any employee, agent, salesman, or other representative within the boundaries of the member jurisdiction;
(3) Provides services or holds inventory within the boundaries of the member jurisdiction;
(4) Rents or leases property located within the boundaries of the member jurisdiction. A seller that establishes a physical presence within the local taxing jurisdiction in any calendar year will be deemed to have a physical presence within the member jurisdiction for the following calendar year.
“Point of delivery” means the location at which property or a product is delivered or service rendered.
(1) When the product is not received or paid for by the purchaser at a business location of a remote seller in a member jurisdiction, the sale is considered delivered to the location where receipt by the purchaser (or the purchaser’s recipient, designated as such by the purchaser) occurs, including the location indicated by instructions for delivery as supplied by the purchaser (or recipient) and as known to the seller.
(2) When the product is received or paid for by a purchaser who is physically present at a business location of a remote seller in a member jurisdiction the sale is considered to have been made in the member jurisdiction where the purchaser is present even if delivery of the product takes place in another member jurisdiction. Such sales are reported and tax remitted directly to the member jurisdiction, not to the commission.
(3) When the service is not received by the purchaser at a business location of a remote seller, the service is considered delivered to the location where the purchaser receives the service.
(4) For products or services transferred electronically, or other sales where the remote seller or marketplace facilitator lacks a delivery address for the purchaser, the remote seller or marketplace facilitator shall consider the point of delivery the sale to the billing address of the buyer.
“Product-based exemption” means an exemption based on the description of the product and not based on who purchases the product or how the purchaser intends to use the product.
“Professional services” means services performed by architects, attorneys-at-law, certified public accountants, dentists, engineers, land surveyors, surgeons, veterinarians, and practitioners of the healing arts (the arts and sciences dealing with the prevention, diagnosis, treatment and cure or alleviation of human physical or mental ailments, conditions, diseases, pain or infirmities) and such occupations that require a professional license under Alaska Statute.
“Property” and “product” and “good” mean both tangible property, an item that can be seen, weighed, measured, felt, or touched, or that is in any other manner perceptible to the senses; and intangible property, anything that is not physical in nature (i.e., intellectual property, brand recognition, goodwill, trade, copyright and patents).
“Quarter” means tri-monthly periods of a calendar year: January through March, April through June, July through September, and October through December.
“Receive” or “receipt” means for purposes of CCO 4.30.050 and the definition of “point of delivery”:
(2) Making first use of services;
(3) Taking possession or making first use of digital goods, whichever comes first.
The terms “receive” and “receipt” do not include temporary possession by a shipping company on behalf of the purchaser.
“Remote sales” means sales of goods or services by a remote seller or marketplace facilitator.
“Remote seller” means a seller or marketplace facilitator making sales of goods or services for delivery within the State of Alaska without having a physical presence in the member jurisdiction in which delivery is being made.
“Resale of services” means sales of intermediate services to a business where the charge for which will be passed directly by that business to a specific buyer.
“Sale” or “retail sale” means any transfer of property or product or any provision of service(s) for consideration for any purpose other than for resale.
“Sales price” or “purchase price” means the total amount of consideration, including cash, credit, property, products, and services, for which property, products, or services are sold, leased, or rented, valued in money, whether received in money or otherwise, without any deduction for the following:
(2) The cost of materials used, labor or service cost, interest, losses, all costs of transportation to the seller, all taxes imposed on the seller, and any other expense of the seller;
(3) Charges by the seller for any services necessary to complete the sale, other than delivery and installation charges;
(4) Delivery charges;
(5) Installation charges; and
(6) Credit for any trade-in, as determined by State law.
“Seller” means a person making sales of property, products, or services, or a marketplace facilitator facilitating sales on behalf of a seller.
“Services” means all services of every manner and description, which are performed or furnished for compensation, and delivered electronically or otherwise into a member jurisdiction , including but not limited to:
(2) Services in which a sale of property or product may be involved, including property or products made to order;
(3) Utilities and utility services not constituting a sale of property or products, including but not limited to sewer, water, solid waste collection or disposal, electrical, telephone services and repair, natural gas, cable or satellite television, and internet services;
(5) Services rendered for compensation by any person who furnishes any such services in the course of his trade, business, or occupation, including all services rendered for commission;
(6) Advertising, maintenance, recreation, amusement, and craftsman services.
“Tax cap” means a maximum taxable transaction.
“Taxing jurisdiction” means a local government in Alaska that has a sales tax.
“Transferred electronically” means obtained by the purchaser by means other than tangible storage media. [Ord. 21-06 § 2 (Att.), 2021; Ord. 20-03 § 2 (Att.), 2020.]