1st Quarter Sales Tax Report: January 1 Through March 31, 2010 (Page 2 of 2) in pdf

1st Quarter Sales Tax Report: January 1 Through March 31, 2010 Page 2

Frequently Asked Questions:

Tax Exempt Sales

Q: What are exempt sales?

A: The Galena Code 3.08.050 lists what sales are exempt; please refer to the code for the

entire list. Most common sales may include food stamps, real estate, medical services, and

sales to governments.

Q: I am doing business with the State of Alaska, is it tax exempt?

A: Yes. According to Galena Code 3.08.050(L) the city is prohibited from taxing the United

States government, the state of Alaska, and other political subdivision of the state of Alaska.

Q: I am doing business with a state of Alaska contractor, is this tax exempt?

A: No, because payment is not being received directly from the state (3.08.050(L)).

Maximum Tax

Q: What is the maximum tax?

A: The maximum tax is based on the sale of any single item which is capped at $1,500. It is

intended to provide a reduced tax due to the city for one time sales. For example, if a piece of

heavy equipment is sold for $5,000 the tax will be calculated on $1,500.

Q: I have a Bed and Breakfast guest who will be staying for 30 nights and I will bill him once for

$3,000. Do I qualify for the Maximum Tax according to Galena Code 3.08.200?

A: No. The reason is that the tax is calculated on “…the smallest commonly used unit…” which

means it is based on the nightly rate of $100.

The municipal code can be viewed online at

Taxation is covered in

Title 3- Revenue and Finance.

Has your name or address changed? If the name, ownership or address on this report is not

correct, please indicate by writing the correct information below.

Ownership or Name Change: __________________________________________________

Address Change: ___________________________________________________________

For Office Use Only:

Paid:

_____Cash

_____Check

Final:

_____Yes

_____No

Check Number:

Amount Paid:

Date Paid:

Initial:____________

City of Galena Sales Tax Report

Page 2 of 2

First Quarter 2010

1st Quarter Sales Tax Report: January 1 Through March 31, 2010 Page 2