5.16.050 Exemptions.
A. The following transactions are exempt from sales tax:
1. Sales of real property and interests in real property.
2. Casual and isolated sales, rentals or services, not made:
a. In the ordinary course of business; or
b. Pursuant to a business license; or
c. By sellers representing themselves to be in the business of making such retail sales, rentals or services.
3. Sales of securities, insurance and bonds of guaranty and fidelity.
4. The following fees charged by banks, savings and loan associations, credit unions and investment banks:
a. Fees associated with deposit accounts, including service fees, monthly account fees, nonsufficient funds (NSF) fees, and attachment fees.
b. Fees for the purchase of bank checks, money orders, travelers checks, foreign currency and similar products for payments.
c. Fees for, or commissions on, the sale, exchange or transfer of currency, stocks, bonds and other securities.
d. Fees for the use of automatic teller machines and for transactions made through automatic teller machines, notary fees and overdraft protection fees.
e. Loan transaction fees and escrow collection services.
f. Safe deposit box rentals or fees.
5. Contracts to transport elementary or secondary school students to and from school.
6. Sales of food in lunchrooms or cafeterias in elementary, secondary or post- secondary schools that are operated primarily for the convenience of school students and faculty, and not operated for profit.
7. Sales, rentals or services which the city is prohibited from taxing by the Constitution or statutes of the United States or the state of Alaska.
8. Sales of subscriptions to newspapers and other periodicals.
9. Sales, rentals and services by or to the United States, the state of Alaska, and any of their agencies, instrumentalities, or political subdivisions and federally recognized Indian tribes. This exemption does not apply to the following:
a. Sales of gaming by federally recognized Indian tribes, political subdivisions, and municipalities; or
b. Retail sales, services or rentals by the city as follows:
i. Sewer and water utility sales, services and rentals;
ii. Wasilla Municipal Airport sales, services and rentals;
iii. Wasilla museum and visitor center sales;
iv. Rents for commercial properties owned by the city.
10. Dues or fees to nonprofit clubs, labor unions or fraternal organizations.
11. Sales of admission to school entertainments, school athletic events, and events conducted for the benefit of charitable or community organizations. Retail sales by a school sanctioned activity group raising funds for its approved purpose. This exemption does not apply to sales of gaming property.
12. Sales of air, train, boat, cruise line or bus tour transportation, car rentals, accommodations, or admission to entertainment events, where the service is provided outside the city, and fees or commissions related to such sales.
13. Sales related to orbital space facilities, space propulsion systems, space vehicles, satellites or stations, to the extent of the exemption required by AS 29.45.650(h).
14. Sales of property purchased with food coupons, food stamps, or other certificates issued under 7 U.S.C.2011 through 2036 (Food Stamp Act) or food instruments, food vouchers, or other certificates issued under 42 U.S.C. 1786 (Special Supplemental Food Program for Women, Infants and Children).
15. Residential Rentals for a Term of 30 or More Consecutive Days. This exemption does not apply to the following:
a. Rental units designed for commercial purpose.
b. Rental units designed for mixed residential and commercial use.
c. Rental agreements designed to avoid sales tax, including more than one rental agreement for units on the same property or adjoining properties, more than one rental agreement to the same person on the same property or adjoining properties, and/or rental agreements where the residential rental rate is disproportionate to the average market rental rates for similar rentals within the city.
16. Child and adult daycare services, pre-elementary school and babysitting services.
17. Sales of cemetery plots, caskets, funeral- and burial-related goods and services.
18. Human health care services provided by a health care provider licensed by the state of Alaska under AS 8, and sales of property and services pursuant to a prescription or written order from such a person.
19. Sales and rentals of hearing aids, crutches, wheelchairs and personal apparatus specifically manufactured for a patient.
20. U.S. postage; and shipping and freight hauling services that originate in the city but the end destination is outside city limits.
21. Assisted living services provided in accordance with an assisted living plan and in an assisted living home licensed as such by the state of Alaska.
22. Sales of goods and services provided under a warranty or service contract, whether performed by the manufacturer or authorized representative of the manufacturer, and charged to a third-party warrantor for repairs, major maintenance, or both. The initial purchase of warranty or service contract would be taxed at the time of purchase. Any portion of repair paid by the customer through a deductible or other means would not be exempt under this section.
23. Sales of commercial air transportation services.
24. Sales of transportation services by taxicabs, limousine companies, and rideshare companies.
B. The following transactions are exempt from sales tax; provided, that the buyer presents to the seller at the time of the sale transaction a valid certificate of exemption applicable to the transaction, issued to the buyer under WMC 5.16.080:
1. Sales to a wholesale or retail dealer in the property sold, for the purpose of resale by the dealer located or making sales inside the city and registered with a city business license.
2. Sales of raw material to a manufacturer located or making sales inside the city and registered with a city business license, which raw material becomes an ingredient or component part of a manufactured product or a container thereof, or is consumed in the manufacturing process.
3. Sales of tangible personal property that either will be consumed in the course of construction or become part of real property, and rentals of equipment or services by a licensed contractor under AS 8.18, to an owner of real property for use in the original construction of, or renovations to, improvements to real property located inside the city. This exemption does not apply to sales of tangible personal property, or rentals of equipment, that are to be used in repairing or maintaining real property.
4. Sales of tangible personal property that either will be consumed in the course of construction or become part of real property, and rentals of equipment or services by a licensed contractor under AS 8.18, to a person licensed as a contractor under AS 8.18 for use in the original construction of, or renovations to, improvements to real property. This exemption does not apply to sales of tangible personal property, or rentals of equipment, that are to be used in repairing or maintaining real property.
5. Sales, rentals and services to a person that the Internal Revenue Service recognizes as an organization described in Section 501(c)(3), 501(c)(4) or 501(c)(19) of the Internal Revenue Code; provided, that the sale, rental or service is not for use in an “unrelated trade or business” of the person, as that term is defined in Section 513 of the Internal Revenue Code.
6. Sales, rentals and services to a church that is organized as a nonprofit corporation under the laws of the state of Alaska.
7. Sales of food supplies to food service establishments located or making sales inside the city and registered with a city business license for incorporation into food products to be sold to the public.
8. Sales of food supplies to hospitals, institutions housing six or more residents, recreational camps and schools located inside the city and registered with a city business license.
9. Services sold for resale when the services are directly integrated into services or goods sold by the buyer located within the city and registered with a city business license, to another purchaser in the normal course of business; provided, that the services are purchased separately for resale, and the services are identified, charged for and billed for separately without markup from any other services.
C. The following transactions are exempt from sales tax; provided, that the seller has at the time of the transaction a valid certificate of exemption applicable to the sales transaction, issued to the seller under WMC 5.16.080:
1. Sales, rentals and services by a person that the Internal Revenue Service recognizes as an organization described in USC 501(c)(3), 501(c)(4) or 501(c)(19) of the Internal Revenue Code; provided, that the sale, rental or service is not part of an “unrelated trade or business” of the person, as that term is defined in the Internal Revenue Code. (Ord. 20-21 § 4, 2020; Ord. 18-06 § 4, 2018; Ord. 18-06 § 3, 2018; Ord. 16-14 § 5, 2016; Ord. 09-41 §§ 2, 3, 2009; Ord. 07-17 § 3, 2007; Ord. 01-38(SUB) § 2, 2001)