(3-minute read) PEOPLE NOT WITHIN TAXING JURISDICTIONS ARE BEING CHARGED
Must Read Alaska has learned that consumers in Juneau, North Pole, Homer, and Wasilla are reporting that Amazon is tacking on a sales tax for their purchases — even if they don’t pay local sales tax.
As earlier reported, buyers started noticing the sales tax in Juneau and inquired with the city’s Tax Office.
In the Capital City and in North Pole, that tax is 5 percent. But it’s 7 percent in Kodiak, and 3 percent in Wasilla.
Some buyers are unhappy because they live outside of the local taxing jurisdiction, but Amazon is collecting the tax anyway because it’s done by zip code.
Amazon’s policy states that the amount of tax charged depends on various factors:
- The identity of the seller
- The type of item or service purchased
- The time and location of fulfillment
- The shipment or delivery address of your order
“These factors can change between the time you place an order and when your shipment is complete. As a result, the tax calculated on your order may change. We provide an “Estimated Tax” is displayed at Check Out when confirming an order. The amounts displayed as estimated tax may then be updated later when your order is finalized and completed.”The tax rate applied to your order will be the combined state and local rates of the address where your order is delivered to or fulfilled from. For example, if you live in a state that does not impose a sales tax, you may still see tax calculated on your order if shipped to another state.
“Moreover, the tax rates applied to your order may also be different for a variety of reasons, such as a shipment to a residential home versus a business address.
“Also, the total selling price of an item will generally include item-level shipping and handling charges, item level discounts, and gift wrapping charges. If applied at an order level, these charges, may be allocated to the individual items in an order.”
The Alaska Municipal League is conducting a study of the internet sale tax situation in Alaska and how Alaska Statute may need to change to adapt. The disparity between local sellers and internet sellers has long been a thorn in the side of brick-and-mortar stores in Alaska.