Sales Tax Exemptions Sales Tax Exemptions Sale Tax

Sales Tax Exemptions

Sales Tax Exemptions • “Sale Tax Exemption” Means That A Sales Transaction Is Not Subject To Sales Tax (SGC 4. 09. 100) • 28 Separate Categories of Sales Tax Exemptions in Sitka General Code • In 2014, only 40. 5% of all reported sales transactions in Sitka were taxed. 59. 5% of all reported sales transactions were exempt from sales taxation. These percentages DO NOT include unreported sales, such as internet sales. Thus, the actual percentage of sales transaction with a nexus in Sitka is less than 40%.

Sales Tax Exemptions • The dollar amount of tax exempt sales in Sitka in 2014 wwas $191, 377, 280. The value of foregone taxes due to these exemptions, at an average sales tax of 5. 5%, was approximately $10, 525, 000. • The CBS tracks sales tax exemption data by both industry segment, and, exemption category. Statistics are compiled on 8 industry segments • The industry segment with the greatest amount of exempt sales is construction, comprising over $85 million in non-taxes business activity, and foregone taxes of approximately $4, 684, 628.

Sales Tax Exemptions • The sales tax exemption category with the greatest amount of exempt sales is sales to government, comprising over $54 million in non-taxes business activity, and foregone taxes of approximately $2, 970, 000. • The combination of industry segment and sales tax exemption category with the largest amount of exempt sales is construction/sales to government, comprising over $38 million in non -taxed business activity, and foregone taxes of approximately $2, 126, 000. Second is construction/wholesale to retail, comprising over $21 million in non-taxed business activity, and foregone taxes of approximately $1, 180, 000.

Tax-Exempt Sales By Industry Category Wholesale To Retail/Construction Over The Cap/Services Long-Term Rent/Finance, Insurance & Real estate Sales to Government/Construction Sales Outside Sitka/Construction Over The Cap/Retail Trade Wholesale to Retail/Wholesale Trade Over The cap/Construction

Tax-Exempt Sales By Tax Exemption Wholesale To Retail/Construction Over The Cap/Services Long-Term Rent/Finance, Insurance & Real estate Sales to Government/Construction Sales Outside Sitka/Construction Over The Cap/Retail Trade Wholesale to Retail/Wholesale Trade Over The cap/Construction

Tax-Exempt Sales By Tax Exemption/Industry Combination Wholesale To Retail/Construction Sales Outside Sitka/Construction Wholesale to Retail/Retail Trade Sales to Government/Construction Over The cap/Construction All Other Combinations Wholesale to Retail/Wholesale Trade Long-Term Rent/Finance, Insurance & Real estate Over The Cap/Services Over The Cap/Retail Trade