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 Sales to Government/Construction Wholesale to Retail/Wholesale TradeOver The Cap/Services Sales Outside Sitka/Construction Over The cap/ConstructionLong-Term Rent/Finance, Insurance & Real estate Over The Cap/Retail Trade

Tax-Exempt Sales By Tax Exemption

Wholesale To Retail/Construction Sales to Government/Construction Wholesale to Retail/Wholesale TradeOver The Cap/Services Sales Outside Sitka/Construction Over The cap/ConstructionLong-Term Rent/Finance, Insurance & Real estate Over The Cap/Retail Trade

Tax-Exempt Sales By Tax Exemption/Industry Combination

Wholesale To Retail/Construction Sales to Government/Construction Wholesale to Retail/Wholesale Trade Over The Cap/ServicesSales Outside Sitka/Construction Over The cap/Construction Long-Term Rent/Finance, Insurance & Real estate Over The Cap/Retail TradeWholesale to Retail/Retail Trade All Other Combinations