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QUESTION DETAIL
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We have a plastic manufacturing business in Alaska. We went to purchase a machine part in another city that charges a 4% sales tax. The city that we're based out of in Juneau collects a sales tax of 5%. Do we owe a tax for the difference?
ANSWER
The BIDaWIZ Team's Answer:
You would owe a use tax for the difference between the sales tax paid and the use tax or 1% in this case. You need to show proof to the tax collector that you paid the 4% in sales taxes on the original purchase.
References: State of Alaska Constitution AS 29.45.650
State: Alaska
Sales tax category: Use Tax
Product/Service: Plastics
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