Alaska Local Sales/Use Tax Protest (ARSSTC and Municipal)

ALASKA LOCAL SALES / USE TAX — PROTEST AND REQUEST FOR HEARING

TABLE OF CONTENTS

1. Letterhead and Addressee
2. Statement of Protest
3. Taxpayer / Seller Information
4. Jurisdiction at Issue and Assessment Identification
5. Issues Under Protest
6. Statement of Facts
7. Legal Argument
8. Remote-Seller / ARSSTC Issues (If Applicable)
9. Relief Requested
10. Reservation of Rights
11. Designation of Representative
12. Verification
13. Certificate of Service
14. Alaska Practice Notes
15. Sources and References

1. LETTERHEAD AND ADDRESSEE

[LAW FIRM / TAXPAYER LETTERHEAD]

Date: [__/__/____]

VIA CERTIFIED MAIL — RETURN RECEIPT REQUESTED
AND VIA EMAIL TO [[email protected]]

[FOR DIRECT MUNICIPAL / BOROUGH PROTESTS]

[CITY / CITY AND BOROUGH / BOROUGH OF [NAME]]
Finance Department — Sales Tax Office
[STREET ADDRESS]
[CITY, AK ZIP]
Attn: Sales Tax Administrator / Finance Director

[FOR REMOTE-SELLER / ARSSTC PROTESTS]

Alaska Remote Seller Sales Tax Commission (ARSSTC)
One Sealaska Plaza, Suite 302
Juneau, AK 99801
Email: [email protected]

Re: PROTEST OF SALES / USE TAX ASSESSMENT (OR DENIAL OF REFUND)
Taxpayer / Seller: [NAME]
Account / Certificate No.: [________________________________]
FEIN: [__-_______]
Assessment / Determination No.: [________________________________]
Notice Date: [__/__/____]
Period(s): [YYYY-Q# through YYYY-Q#]
Tax in dispute: $[________]

2. STATEMENT OF PROTEST

Pursuant to [CITE LOCAL CODE — e.g., Juneau City & Borough Code § 69.05.150 / Wasilla Municipal Code § 5.16.230 / ARSSTC Uniform Remote Seller Sales Tax Code § 13], [TAXPAYER] ("Taxpayer") timely files this written protest of the above-identified assessment (or denial of refund) and requests:

• A. A scheduled administrative hearing or informal conference;
• B. Production of the assessing jurisdiction's audit file and workpapers;
• C. Withdrawal or abatement of the assessment in whole or in part as set forth in Section 9; and
• D. Preservation of all rights to further administrative review and to judicial review in the Alaska Superior Court under AS 22.10.020 and Alaska R. App. P. 601 et seq.

This protest is filed within the [30 / 60 / __]-day window prescribed by the operative code and is therefore timely.

3. TAXPAYER / SELLER INFORMATION

4. JURISDICTION AT ISSUE AND ASSESSMENT IDENTIFICATION

The Notice of Assessment, audit narrative, and Taxpayer's filed returns for the period are attached as Exhibits A–C.

5. ISSUES UNDER PROTEST

Taxpayer protests the following adjustments:

1. [Issue 1 — e.g., Erroneous classification of exempt resale transactions as taxable retail sales]
2. [Issue 2 — e.g., Failure to apply the per-transaction tax cap under [Code § ___]]
3. [Issue 3 — e.g., Imposition on services not enumerated as taxable under the local code]
4. [Issue 4 — e.g., Misapplication of sourcing rules to deliveries outside the jurisdiction]
5. [Issue 5 — e.g., Wayfair-based nexus assertion against a seller below the de minimis threshold ($100,000 or 200 transactions under the Uniform Code prior to threshold revisions)]
6. [Issue 6 — Penalty abatement]

6. STATEMENT OF FACTS

6.1. Taxpayer is a [describe business — e.g., Lower-48 e-commerce retailer / local hardware store / lodging provider] whose Alaska activity during the periods at issue consisted of [describe — e.g., $XXX,XXX of gross sales delivered into [jurisdiction]; X transactions].

6.2. ☐ Taxpayer maintains physical presence in the assessing jurisdiction at [ADDRESS].
☐ Taxpayer has NO physical presence in the assessing jurisdiction; sales are made remotely from outside Alaska and shipped to Alaska customers.

6.3. ☐ Taxpayer is registered with ARSSTC effective [__/__/____] and has filed all required ARSSTC returns.
☐ Taxpayer was below the Uniform Code economic-nexus threshold during the period.

6.4. The assessing jurisdiction issued the Notice of Assessment on [__/__/____] following an audit covering [period]. The audit narrative is attached as Exhibit B.

6.5. [ADDITIONAL OPERATIVE FACTS — sourcing detail, exemption certificates collected, customer affidavits, marketplace-facilitator status under the Uniform Code, etc.]

7. LEGAL ARGUMENT

7.1. Local taxing authority is limited to the operative code

Local sales tax in Alaska is authorized only under AS 29.45.650–.710 and exists only to the extent the assessing jurisdiction has enacted it. The assessment must be supported by a specific code section identifying the transaction as taxable. Items not enumerated as taxable are not taxable. [Apply to the facts.]

7.2. Exemption applies

[State the applicable exemption: resale, wholesale, government, nonprofit, senior, disability, fuel, professional services, or jurisdiction-specific exemption. Cite the local code section and produce supporting certificates.]

7.3. Sourcing

Under the Uniform Alaska Remote Seller Sales Tax Code § 7 (and parallel provisions in member-jurisdiction codes), a sale is sourced to the destination location for delivery and to the seller's location for in-store pickup. [Apply to the facts; show that the destination is outside the assessing jurisdiction or below the cap.]

7.4. Per-transaction cap

Many Alaska jurisdictions cap sales tax at the first $[500 / 750 / 1,000 / ___] of any single transaction (e.g., Juneau, Wrangell, Petersburg, Cordova). The audit improperly aggregated separate transactions or failed to apply the cap. [Apply to the facts.]

7.5. Nexus / Wayfair compliance

For remote sellers, South Dakota v. Wayfair, Inc., 138 S. Ct. 2080 (2018), permits states (and by extension, local jurisdictions through ARSSTC) to require collection only where the seller meets a meaningful economic-nexus threshold. The Uniform Code's threshold during the period was [$100,000 in statewide gross sales OR 200 transactions — confirm current threshold; the "200 transactions" prong was repealed effective Jan. 1, 2024]. [Apply to the facts.]

7.6. Penalty abatement

Penalties under the local code should be abated for reasonable cause where Taxpayer (i) registered with ARSSTC promptly upon crossing threshold, (ii) maintained good-faith records, (iii) relied on professional advice, and (iv) cooperated with the audit.

7.7. Constitutional limits

Any local assessment must satisfy Complete Auto Transit, Inc. v. Brady, 430 U.S. 274 (1977), and the post-Wayfair substantial-nexus and non-discrimination requirements. The assessment fails because [STATE BASIS — e.g., it imposes a higher effective rate on remote sellers; it lacks a meaningful safe harbor; it imposes retroactive collection].

8. REMOTE-SELLER / ARSSTC ISSUES (IF APPLICABLE)

8.1. ARSSTC structure. The Alaska Remote Seller Sales Tax Commission was established by intergovernmental agreement among Alaska municipalities and boroughs in 2020 to administer remote-seller sales tax under a Uniform Code. ARSSTC does not impose tax; member jurisdictions do, with ARSSTC serving as the registration, return, and remittance hub.

8.2. Member jurisdictions only. ARSSTC's Uniform Code applies only to ARSSTC-member jurisdictions. Non-member jurisdictions retain separate authority and procedures. A current member list is available at https://arsstc.org/.

8.3. Marketplace facilitators. Under Uniform Code § 4, a marketplace facilitator is required to collect and remit on behalf of marketplace sellers meeting the threshold. Marketplace sellers are relieved of duplicative collection for sales through registered facilitators. [Apply to the facts.]

8.4. Buyer protests. Where a buyer was incorrectly charged tax, the buyer may file a protest with the seller and/or with ARSSTC under Uniform Code § 13. ARSSTC routes the refund through the seller's return-and-remit cycle.

8.5. Software-based safe harbor. Sellers using ARSSTC-certified tax software in good faith are entitled to a hold-harmless defense for tax-determination errors arising from the software's data, consistent with the Uniform Code's certification provisions.

9. RELIEF REQUESTED

Taxpayer respectfully requests that the assessing jurisdiction (or ARSSTC):

• A. Withdraw or abate the disputed portion of the assessment ($[________]);
• B. Recompute interest to reflect the abated tax;
• C. Abate all penalties for reasonable cause;
• D. Issue a refund of any overpayment with statutory interest;
• E. Issue a written decision setting forth findings of fact and conclusions of law; and
• F. Grant such other and further relief as is just and proper.

10. RESERVATION OF RIGHTS

10.1. Taxpayer reserves the right to appeal an adverse decision to the [municipal hearing officer / borough assembly / ARSSTC Board of Appeals] as provided by the operative code, and thereafter to seek judicial review in the Alaska Superior Court under AS 22.10.020 and Alaska R. App. P. 601 et seq.

10.2. Taxpayer reserves the right to amend or supplement this protest, raise additional issues, and present additional evidence at any hearing.

10.3. Nothing herein waives any defense, including statute of limitations, due process, equal protection, Commerce Clause, or Wayfair-based substantial-nexus challenges.

11. DESIGNATION OF REPRESENTATIVE

Taxpayer designates the following as authorized representative(s):

12. VERIFICATION

I, [OFFICER NAME], [TITLE] of [TAXPAYER], declare under penalty of perjury under the laws of the State of Alaska that I am authorized to execute this protest and that the facts stated herein are true and correct to the best of my knowledge, information, and belief.

Executed this [____] day of [_______________], 20[____], at [CITY, STATE].

[________________________________]

[OFFICER NAME, TITLE]

13. CERTIFICATE OF SERVICE

I certify that on [__/__/____] I caused this Protest, with all exhibits, to be served upon the assessing jurisdiction by certified U.S. Mail, return receipt requested, and by email as set forth in Section 1.

[________________________________]

[REPRESENTATIVE NAME]

14. ALASKA PRACTICE NOTES

• No statewide sales tax. Alaska does NOT impose a state sales tax. All Alaska sales/use tax is purely local under AS 29.45.650–.710. The Department of Revenue plays no role in local sales tax administration.
• No statewide protest forum. There is no Alaska Tax Tribunal or state-level appeal for local sales tax. Each jurisdiction's code defines its own protest, hearing, and judicial-review path. Most provide an administrative hearing followed by Superior Court review.
• Common rates and structures. Local rates range from roughly 1% (Wrangell base) to 7.5% (some seasonal rates in Cordova / Sitka / Ketchikan combined city + borough). Most jurisdictions impose a per-transaction cap (commonly $500–$1,000) above which the tax does not apply. Always confirm the current rate, cap, and seasonal variation.
• No general sales tax in Anchorage / Fairbanks. Alaska's two largest population centers do not impose a general sales tax. Anchorage imposes targeted excise taxes (alcohol, tobacco, marijuana, room/lodging, motor vehicle rental) under separate code titles. Confirm whether the audit involves a true general sales tax or a targeted excise.
• ARSSTC and remote sellers. The Alaska Remote Seller Sales Tax Commission, formed by intergovernmental agreement in 2020, administers a Uniform Code for remote sellers selling into member jurisdictions. Threshold during 2024–2026 is $100,000 in Alaska-wide gross sales (the 200-transaction prong was repealed effective Jan. 1, 2024). Marketplace facilitators have separate collection responsibilities.
• Wayfair compliance. Pre-Wayfair nexus arguments based solely on lack of physical presence are no longer viable. Focus instead on threshold, sourcing, exemption, sourcing, marketplace-facilitator allocation, and software-based safe harbor.
• Exemption certificates. Most Alaska sales-tax codes recognize resale, wholesale, government, senior, disability, and nonprofit exemptions. Maintain current certificates; the audit will deny exemptions for transactions lacking documentation, regardless of substantive entitlement.
• Protest deadlines vary. Common windows are 30 days (Wasilla, several Mat-Su cities), 60 days (Juneau, Bethel, ARSSTC), or 90 days. Calendar all deadlines by reference to the OPERATIVE local code, not state law.
• Refund claims. Local refund procedures vary. Most jurisdictions require a written refund claim within 1–3 years of payment, often filed by the seller on behalf of the buyer (with subsequent pass-through to the buyer).
• Judicial review. Final administrative decisions are reviewable in Alaska Superior Court under AS 22.10.020 and Alaska Rule of Appellate Procedure 602(a)(2). Standard of review is generally arbitrary-and-capricious for factual findings and de novo for pure legal questions.
• Confidentiality. Most local codes incorporate confidentiality provisions analogous to AS 43.05.230. Mark all submissions accordingly.

15. SOURCES AND REFERENCES

• AS 29.45.650–.710 (Municipal sales tax) — https://www.akleg.gov/basis/statutes.asp
• Alaska Remote Seller Sales Tax Commission (ARSSTC) — https://arsstc.org/
• ARSSTC seller portal — https://arsstc.munirevs.com/
• Uniform Alaska Remote Seller Sales Tax Code (Addendum A) — https://www.akml.org/wp-content/uploads/2020/01/Uniform-Alaska-Remote-Seller-Sales-Tax-Code-Final-numbered.pdf
• ARSSTC About — https://arsstc.org/about/
• City and Borough of Juneau — Sales Tax — https://juneau.org/finance/sales-tax
• City of Wasilla — Sales Tax Exemption & Protest — https://www.cityofwasilla.gov/443/Sales-Tax-Exemption-Tax-Protest-Informat
• City of Bethel — Sales Tax — https://www.cityofbethel.org/
• City and Borough of Sitka — Sales Tax — https://www.cityofsitka.com/
• Kodiak Island Borough — Finance — https://www.kodiakak.us/
• Ketchikan Gateway Borough — Sales Tax — https://www.kgbak.us/
• Alaska Municipal League — https://www.akml.org/
• South Dakota v. Wayfair, Inc., 138 S. Ct. 2080 (2018)
• Complete Auto Transit, Inc. v. Brady, 430 U.S. 274 (1977)
• Alaska R. App. P. 601–602 (Superior Court review of administrative decisions)

Disclaimer: This template is provided for informational purposes only and does not constitute legal or tax advice. Local Alaska sales tax codes vary substantially among the more than 100 taxing municipalities and boroughs. An attorney or CPA licensed in Alaska, familiar with the specific jurisdiction at issue, must review and customize this document before filing. Verify all rates, thresholds, exemptions, deadlines, and procedures against the operative local code before use.