Sales Tax Exemptions

Presentation on theme: "Sales Tax Exemptions"— Presentation transcript:

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Sales Tax ExemptionsSlide2

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%.Slide3

Sales Tax Exemptions

The dollar amount of tax exempt sales in Sitka in 2014

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$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.Slide4

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.Slide5
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