Sales Tax Code & Policy Changes

Ordinance 2026-20 sets the ‘received by’ date as the standard for determining whether a sales tax return or payment is considered timely. USPS postmark dates will no longer be used to determine timeliness.

*Please note: this change will be considered effective for monthly filers starting with returns due by August 31, 2026, for both filing returns and submitting payments.

Those choosing to mail a sales tax return and/or payment should allow sufficient time for delivery to ensure it is received by CBJ on or before the filing deadline.

Similarly, merchants using their bank’s Bill Pay service should be aware that many banks issue paper checks that are mailed from processing centers outside of Alaska. These payments can take several days or even weeks to arrive in Juneau and will be considered late if not received by the due date.

You can avoid the uncertainty of the USPS and file and make a payment with one of the following options:

• Online through the online filing portal where payments can also be made via credit card of ACH/eCheck. The received date is considered the date of the timestamp on the transactions.
• In-person at City Hall where payments can be made via cash or check. The received date will be the date noted on your receipt or stamped copy of your return.
• Locally, sales tax returns along with the cash or check payments can be dropped at one of the CBJ drop boxes at Superbear IGA, Foodland IGA, or outside the main entrance to City Hall. Please be sure to place all drop box returns and payments in a sealed envelope. Drop boxes are collected each morning and the received date is considered the preceding day.

Ordinance 2026-20 reduces the timeframe for filing amended returns that decrease the amount of tax due. Such amended returns must now be submitted within one year of the original due date of the return and include written justification for the amendment. Amended returns that increase the amount of tax due may still be submitted at any time.

Ordinance 2026-20 updated the interest rate on delinquent sales taxes to 12% per annum. This rate was previously subject to change annually based on the Prime Rate as of January 2, and could range anywhere from 10% – 15%.

The ordinance also codifies the circumstances and process by which merchants can request a waiver of penalties and interest:

• Requests must be submitted on the form provided by CBJ within 60 days of the penalties and interest being applied
• Waivers may be granted for extraordinary circumstances beyond the merchant’s control or for merchants with a demonstrated history of compliance for the preceding 36 months
• Extraordinary circumstances do not include inadvertence, oversight, lack of knowledge of filing requirements and deadlines, employee error, financial hardship, returned payments, or failure to monitor mail or update the mailing address on the account

Ordinance 2026-28 repeals the $30 compensatory discount available to timely filers submitting sales tax returns through the online filing system.

Effective October 1, 2026, sales tax returns filed through the online filing system will continue to be accepted as usual; however, the $30 compensatory discount previously associated with online filing will no longer be available.

Ordinance 2026-27(am) amends the existing sales tax cap by increasing it to $50,000 for both single items and single services. An exception applies to motor vehicle sales with a selling price of $50,000 or less, which are instead subject to a lower cap of $15,000.

The definitions of “single item” and “single service” under CBJC 69.05.040(21) and (22) have not changed. Existing guidance and interpretations regarding what constitutes a single item or a single service continue to apply.

These changes apply to sales made on or after October 1, 2026, and should be reflected in merchant reporting beginning in the 4th Quarter 2026.

The lower $15,000 vehicle cap applies only to the sale of a motor vehicle with a selling price of $50,000 or less. Motor vehicles with a selling price greater than $50,000 are subject to the standard $50,000 single item cap.

For purposes of applying the sales tax cap under CBJC 69.05.040(21), a motor vehicle means a self-propelled vehicle designed primarily for transporting people or property on public roads. This includes passenger cars, trucks, vans, SUVs, and motorcycles.

The motor vehicle definition is intended to apply to traditional car and vehicle purchases only and should not be extended to equipment, trailers, boats, aircraft, heavy machinery, or any other goods.