Alaska Intergovernmental
Remote Seller
Sales Agreement

FINAL DRAFT

October 11, 2019

Alaska Intergovernmental Remote Seller Sales Tax Agreement
This Agreement is made and entered into by the signatories representing Alaska’s cities and
boroughs to enable them to implement single-level, statewide administration of remote sales tax
collection and remittance. The provisions of the Agreement do not apply to administration and
collection of sales taxes for the sales of goods and services originating from within the boundaries
of a member municipality nor does this Agreement restrict how a member municipality administers
and collects sales tax on such sales, nor on sales made by those retailers with a physical presence in
the municipality. The authority to set rates and exemptions is maintained by the member
municipality.
Article I. Background Principles.
1. The signatories wish to enable local governments to benefit from opportunities for
collection of existing sales tax on sales made by remote sellers. Remote sellers are sellers
who sell, often through the internet, products or services in a taxing jurisdiction without
having a physical presence in the taxing jurisdiction.
2. The collection of remote sales tax provides a level playing field for local businesses and
strengthens the ability of local governments to provide public services and infrastructure.
3. The signatories are particularly mindful of the specific holding in, and implications of, the
Supreme Court’s South Dakota v. Wayfair decision, which provides guidance relative to
nexus and the legal defensibility of a single-level statewide administration that reduces or
removes potential burdens to interstate commerce.
4. Alaska’s local governments have the authority to enter into intergovernmental agreements
and applicable taxing authority has been delegated to organized boroughs and cities.
5. The signatories desire to establish an intergovernmental entity to enable cooperative
centralized administration of sales tax collection, remittance, and enforcement on sales
made by remote sellers.
Article II. Purpose.
The purpose of this Agreement is to:
1. Enable cooperative centralized administration of sales tax collection, remittance, and
enforcement on sales made by remote sellers using a single statewide intergovernmental
entity;
2. Provide for and promote reasonable uniformity and compatibility in significant components
of local sales tax levy and collection on sales made by remote sellers and marketplace
facilitators in order to facilitate streamlined joint administration; and
3. Facilitate taxpayer and tax collector convenience and compliance in the filing of tax returns,
the payment of tax, and in other phases of tax administration of sales made and services
provided by remote sellers and marketplace facilitators.

 Article III. Definitions.
As used in this Agreement:
1.

“Commission” means the Alaska Remote Seller Sales Tax Commission established
pursuant to this Agreement.

2. “Local Government” means any home rule, first class, or second class borough, or any
home rule, first class, or second class city, or unified municipality in Alaska.
3. “Member” means a Local Government signatory to this Agreement.
4. “Remote seller” means any corporation, partnership, firm, association, governmental unit or
agency, or person acting as a business entity that sells property or products or performs
services in the State of Alaska or a taxing municipality in the state, using the internet, mail
order, or telephone, without having a physical presence in the state or taxing municipality.
5. “Sales tax” means a tax imposed with respect to the transfer for a consideration of
ownership, possession, or custody of property or the rendering of services measured by the
price of the property transferred or services provided.
6. “Marketplace facilitator” means a person that provides for sellers a platform to facilitate for
consideration, regardless of whether deducted as fees from the transaction, the sale of the
seller’s products or services (excluding lodging and rentals) through a physical or electronic
marketplace operated by the person, and engages:
a. 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 seller;
ii. Owning or operating the infrastructure, electronic or physical, or technology
that brings buyers and sellers together;
iii. Providing a virtual currency that buyers are allowed or required to use to
purchase products from the seller; or
iv. Software development or research and development activities related to any
of the activities described in (b) of this subsection (3), if such activities are
directly related to a physical or electronic marketplace operated by the
person or an affiliated person;
b. In any of the following activities with respect to the seller's products:
i. Payment processing services;

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 ii. Fulfillment or storage services;
iii. Listing products for sale;
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.
Article IV. The Commission.
1. Organization and Management.
a. The Alaska Remote Seller Sales Tax Commission (the “Commission”) is hereby
established as an intergovernmental entity in the state of Alaska. It will be
comprised of one designated representative from each Member, who shall have the
authority to act on the Member’s behalf.
b. Each Member will be entitled to one vote.
c. To assist conducting business when the full Commission is not meeting, the
Commission will annually elect a Board of Directors of seven members, including
officers. The Board of Directors will act subject to the provisions of this Agreement
and as provided in the bylaws of the Commission, as ratified by the members.
d. No action will be binding unless approved by a majority of the Directors present at a
meeting.
e. The Commission will adopt an official logo.
f. The Commission will hold an annual meeting rotating the location of the meeting
each year, with telephonic participation provided for, in addition to scheduled
regular meetings and special meetings as provided by its bylaws. Notices of special
meetings must include the reasons for the meeting and the items to be considered.
g. The Commission will elect annually, from among its members, a Chairman, a Vice
Chairman, and a Secretary/Treasurer. The bylaws of the Commission shall provide
for nomination and election of officers.
h. The Commission will contract at formation for support and administrative functions
with the Alaska Municipal League (AML). The Executive Director of the AML will
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 serve as a liaison between the Commission and AML and may appoint necessary
staff support. This provision will be revisited within three years of legal formation of
the Commission.
i. The Commission may contract for supplies and professional services, and delegates
to AML the same ability on its behalf.
j. To carry out any purpose or function, the Commission may accept and utilize
donations and grants of money, equipment, supplies, materials and services,
conditional or otherwise, from any Member or governmental entity.
k. The Commission may establish one or more offices for the transacting of its
business. Upon formation, its registered office and place of business will be the
Alaska Municipal League at One Sealaska Plaza, Suite 200, Juneau, AK 99801.
l. The Members will adopt the initial bylaws of the Commission. The Commission
will make its bylaws easily accessible for Members and prospective members. The
power to adopt, alter, amend or repeal bylaws is vested in the Board of Directors
unless it is reserved to the Members per the bylaws. The bylaws shall contain
provisions for the regulation and management of the affairs of the Commission not
inconsistent with this Agreement.
m. The Commission will provide annual reports to its members covering its activities
for the preceding fiscal year. The Commission may make additional reports.
2. Committees.
a. In furtherance of its activities, the Commission may establish advisory and technical
committees by a majority vote of the membership body. Membership on a technical
committee, may include private persons and public officials. Committees may
consider any matter of concern to the Commission, including issues of special
interest to any member and issues pertaining to collection of sales tax on behalf of
members.
b. The Commission may establish additional committees by a majority vote of the
membership or Board of Directors as its bylaws may provide.
c. Committees may not take any action but may recommend action to the Board of
Directors for consideration.
3. Powers.
In addition to powers conferred elsewhere in this Agreement and in the bylaws, the
Commission may:
a. Study federal, state and local sales tax systems, and particular types of state and
local taxes.
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 b. Develop and recommend proposals to promote uniformity and compatibility of local
sales tax laws with a view toward encouraging the simplification and improvement
of local tax law and administration.
c. Compile and publish information to support and assist members in implementing the
Agreement or assist taxpayers in complying with local government sales tax laws.
d. Do all things necessary and incidental to the administration of its functions pursuant
to this Agreement, including:
i. Sue and be sued.
ii. Administer provisions of uniform sales tax ordinances pursuant to authority
delegated by Members
f. The Commission may create and adopt policies and procedures for any phase of the
administration of sales tax collection and remittance in accordance with this
Agreement and the Commission’s bylaws, including delegated authority to
administer taxation or prescribing uniform tax forms. Prior to the adoption of any
policy, the Commission will:
1. As provided in its bylaws, hold at least one meeting after due notice to all
affected members and to all taxpayers and other persons who have made timely
requests to the Commission for advance notice of its policy-making
proceedings.
2. Afford all affected members and interested persons an opportunity to submit
relevant written comments, which will be considered fully by the Commission.
g. The Commission will submit any policy adopted by it to the designated
representative of all Members to which they might apply. Each such Member will
in turn consider any such policy for adoption in accordance with its own laws and
procedures.
4. Finance.
a. At least 90 days prior to the start of a new fiscal year, the Board of Directors will
adopt a budget of its estimated expenditures for the upcoming fiscal year and submit
to Members.
b. The Commission will follow a July 1 to June 30 fiscal year.
c. The Commission’s budgets must contain specific recommendations for service fees
built into statewide administration. Service fees will account for direct staff and
software costs, and indirect costs, as justifiable to the Board of Directors.

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 d. The Commission will not pledge the credit of any member. The Commission may
meet any of its obligations in whole or in part with funds available to it, provided
that it takes specific action to set aside such funds prior to incurring any obligation
to be met in whole or in part in such manner. Except where the Commission makes
use of funds available to it, the Commission may not incur any obligation prior to
the allocation and commitment of funds adequate to meet the same.
e. The Commission must keep accurate accounts of all receipts and disbursements. The
receipts and disbursements of the Commission will be subject to the audit and
accounting procedures established under its bylaws. All receipts and disbursements
of funds handled by the Commission will be audited annually by a certified public
accountant and the report of the audit will be included in and become part of the
annual report of the Commission to Members.
f. The accounts of the Commission will be open at any reasonable time for inspection
by duly constituted officers of the Members, the State of Alaska, and by any persons
authorized by the Commission.
g. Nothing contained in this Article may be construed to prevent Commission
compliance with laws relating to audit or inspection of accounts by or on behalf of
any government contributing to the support of the Commission.
Article V. Membership Requirements; Remote Seller Sales Tax Code.
1. To obtain and retain full membership, the Local Government must submit either an
Ordinance or Resolution authorizing entry into the Agreement, including to:
a. Designate the individual at the municipality that may execute initial binding documents
on behalf of the municipality and who will be the Member’s representative on the
Commission.
2. Once the Commission adopts its bylaws and adopts a uniform Remote Sellers Sales Tax
Code, members must submit an Ordinance or Resolution that:
a. Delegates remote seller sales tax registration, exemption certification, collection,
remittance, and audit authority to the Commission.
b. Within one hundred twenty (120) days, adopts, by reference or otherwise, the Remote
Seller Sales Tax Code in its entirety as it pertains to collection of sales tax from remote
sellers and marketplace facilitators. The Remote Seller Sales Tax Code is provided as
“Addendum A”.
3. To retain full membership status, changes made to the Agreement or Code should be ratified
by the Member within one hundred twenty (120) days of the date the Commission adopts
the change.

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 4. The Member must provide notice of tax or boundary changes to the Commission and must
assure the Commission of the accuracy of rates and exemptions. Rate and exemption
changes will take effect within thirty (30) days of the date the Commission receives notice
of the tax or boundary change.
Article VI. Sales Tax Collection and Administration.
1. Collection; Registration; Remittance.
a. Every remote seller and marketplace facilitator meeting the Threshold Criteria of
one hundred thousand ($100,000) in annual sales or 100 annual transactions
occurring in Alaska during the current or previous calendar year, shall collect sales
taxes from the buyer at the time of sale or service and shall transmit the sales taxes
collected to the Commission on a monthly or quarterly basis.
b. The Commission will remit and report to Members by the last business day of the
month.
c. A remote seller or marketplace facilitator meeting the Threshold Criteria shall apply
for a certificate of sales tax registration within thirty (30) calendar days of the
adoption of this Remote Seller Sales Tax Code and/or within thirty (30) calendar
days of meeting the threshold, whichever occurs later. Registration shall be to the
Commission on forms prescribed by the Commission as set out in the remote seller
sales tax code.
d. Upon receipt of a properly executed application, the Commission shall issue the
applicant a certificate of registration, stating the legal name of the seller, the primary
address, and the primary sales tax contact name and corresponding title. A list of
registered sellers in good standing shall be distributed to Members, made public and
available on the Commission’s webpage.
2. Returns; Confidentiality.
a. The Commission will provide all sales tax return information to the taxing
jurisdiction, consistent with local tax codes.
b. All returns, reports and information required to be filed with the Commission under
this Code, and all information contained therein, shall be kept confidential and shall
be subject to inspection only by:
i. Employees and agents of the Commission and taxing jurisdiction whose job
responsibilities are directly related to such returns, reports and information;
ii. The person supplying such returns, reports and information; or

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 iii. Persons authorized in writing by the person supplying such returns, reports
and information.
3. Title; Penalty and Interest; Overpayment.
a. Upon collection by the seller, title to the sales tax vests in the Commission and the
member on whose behalf the original tax arose. The Commission shall act as a
third-party trustee and remit taxes collected on behalf of the member no later than
thirty (30) days after each filing deadline.
b. The Remote Sellers Sales Tax Code shall establish the per annum interest rate and
any applicable penalties for late or non-compliant remote sellers.
c. Upon request from a buyer or remote seller the Commission shall provide a
determination of correct tax rate and amount applicable to the transaction. In the
case of an overpayment of taxes, the remote seller shall process the refund and
amend any returns accordingly.
4. Audit; Compliance and Enforcement.
a. The Commission shall have sole audit authority and will make final determinations
regarding: (1) whether a remote seller or marketplace facilitator meets Threshold
criteria; (2) the accuracy of returns filed by a remote seller or marketplace facilitator
with the Commission; and (3) whether a remote seller or marketplace facilitator
filing returns with the Commission is in compliance with collection and remittance
obligations.
b. The Commission shall have authority to enforce issues relating to the Remote
Sellers Sales Tax Code including, but not limited to, the collection of late fees and
penalties, and filing of civil suits and injunctions.
Article VII. Entry into Force and Withdrawal.
1. This Agreement will be in force and effective when formally approved by any seven
signatories and will terminate if membership falls below seven.
2. Any Member may withdraw from this Agreement through ordinance or resolution
rescinding signatory action and giving notice to the Commission of the effective date of the
ordinance, with a minimum of 30 days’ notice. Withdrawal will not affect any liability
already incurred by or chargeable to a Member prior to the effective date of such
withdrawal. The obligations of the Commission to remit and report remain until no longer
necessary.
Article VIII. Effect on Other Laws and Jurisdiction.
Nothing in this Agreement may be construed to:
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 1. Affect the power of any local government to fix rates or tax exemptions, except that all
members must adopt and implement the Commission’s common definitions and tax code
changes or demonstrate parity or non-applicability.
2. Withdraw or limit the authority of local government with respect to any person, corporation,
or other entity or subject matter, except to the extent that such authority is expressly
conferred by or pursuant to this Agreement upon another agency or body.
3. Supersede or limit the jurisdiction of any court of the State of Alaska.
Article IX. Construction and Severability.
This Agreement shall be liberally construed so as to effectuate its purposes. The provisions of this
Agreement shall be severable and if any phrase, clause, sentence, or provision is declared or held
invalid by a court of competent jurisdiction, the validity of the remainder of this Agreement and its
applicability to any government, agency, person or circumstance will not be affected. If any
provision of this Agreement is held contrary to the charter of any member, the Agreement will
remain in full force and effect as to the remaining members and in full force and effect as to the
Member affected in all other provisions not contrary to charter.

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