Denali Borough Tax FAQ

 

 What is the overview process of tax registration, tax collection, return filing, and tax remittance?

A general overview of the tax process is:

  1. Register your business to collect taxes. Tax registration is required annually (with the exception of certain severance operators).
  2. Collect taxes from customers. Business should provide receipts to the customer showing the tax amount paid by the customer. Collected taxes should be segregated from normal revenues and held until remitted to the borough.
  3. File your quarterly tax return. Tax returns are required based on your registration type (Regular or Seasonal) and are required for each applicable quarter.
  4. Remit quarterly taxes. Taxes remitted to the borough must be accompanied by a tax return.
  5. Retain your tax records. Tax records must be retained by the operator for a minimum of three years.

 I just started my business, where do I register to collect taxes?

An Alaska Business License number from the State of Alaska is required for registration. You may apply for an Alaska Business License through the State of Alaska website.

 

Businesses should register to collect taxes before beginning operations. The tax registration form for Overnight Accommodations, Alcohol and Marijuana, and Severance businesses is available online in the Finance Department Tax Information & Forms section.

 

The Denali Borough will issue a tax certificate after receiving and reviewing a completed tax registration form. A copy of the tax certificate must be posted at the place of business.

 How long is a tax certificate valid for?

Tax certificates are valid for one year and expire on September 30th for Seasonal registrations or December 31st for Regular registrations. Tax certificates should be re-applied for annually. Certain severance operators may qualify for a five-year tax certificate.

 If I have multiple businesses operating under one entity, do I need to register all business names separately?

Yes. If you have multiple businesses, or "Doing Business As" names, operating under one entity name, you must register each business name and location that will be collecting tax as per Denali Borough Code.

 I changed my business name or entity type, what should I do?

You are required to complete a new tax registration form for the new business name or entity type.

 My business contact information has changed, what should I do?

Please email tax@denaliborough.com immediately of any changes to your business registration information or contact person information. You may be required to complete a new tax registration form.

 I registered for a Seasonal tax registration type, but now want to operate year-round, what should I do?

Please email tax@denaliborough.com to request your registration type be changed to Regular. If approved, you will receive a new tax certificate by email.

 I sold or closed my business that was registered to collect taxes, what should I do?

Please email tax@denaliborough.com immediately of the sale or closure of your business. A final tax return form is required to be filed, along with any taxes due, to the Denali Borough no later than 30 days after the sale of business.

 I am an operator, but I was not aware of tax requriements related to my business prior to commecing business. What should I do?

If your business engaged in overnight accommodations rentals, the sale of alcohol or marijuana, or the severance of coal, limestone, or gravel, you are liable for past taxes and any applicable penalties and/or interest. Please notify the the Borough office of your non-compliance and intent to become compliant as soon as possible by email to tax@denaliborough.com or by phone at (907) 683-1330.

 

You will need to first register your business using the appropriate registration online form and complete a tax return for each quarter that you operated in. If your tax returns are in a previous calendar year, contact the borough office to obtain a link to the correct calendar year tax return online form.

 Do I need to submit a tax return for every quarter period?

You are required to submit a tax return for every quarter you registered to operate.

  • Regular Registration: You are required to submit a tax return for FOUR quarter periods.
  • Seasonal Registration: You are required to submit a tax return for TWO quarter periods (April-June and July-September).

A tax return that is required to be filed but is not filed before the due date or is missing is subject to a $25 late or missing return penalty.

 I registered and received tax certificates for multiple businesses. Do I need to file a separate quarterly tax return form for each registered business?

Yes, each registered business requires a separate quarterly tax return and cannot be combined with other businesses.

 When are tax returns and tax payments due?

Tax returns and tax payments are due on the last business day of the month following the quarter end date. If this day falls on a day the borough office is closed (a holiday or Friday, Saturday, or Sunday), then the due date is extended to the next business day the borough office is open.

 

If extraordinary circumstances prevent the filing of a tax return and/or payment of taxes before the due date, please email tax@denaliborough.com immediately for guidance.

 How can I make tax payments to the Borough?

Tax Payments must be accompanied by a completed quarterly tax return form.

 

Tax payments are accepted in person at the Denali Borough office, by mail, or online. Delinquent returns and/or tax payments are subject to penalties per Denali Borough Code.

  • Pay Online: Electronic payments are accepted through Value Payment Systems. All payments are processed immediately and the date is equal to the time you completed the transaction. Payment must be received by the return due date to not be delinquent. A convenience fee of 2.95% (minimum $1.95) will be charged for all debit or credit card payments and a $1.95 fee will be charged for eCheck payments.
  • By mail: Check payments mailed to P.O. Box 480 Healy, AK 99743 must be postmarked by the return due date to not be delinquent.
  • In person: Cash or check payments must be received at the Borough Office by 4:00 pm on the business day the return is due to not be delinquent.

If you are interested in a different payment method, such as ACH credit payment, please email tax@denaliborough.com.

 Can Airbnb or VRBO collect and remit overnight accommodations taxes for me?

Yes and no. Short term rental sites (such as Airbnb and VRBO) can collect overnight accommodations taxes from guests and transmit collected taxes to the operator. However, it is the responsibility of the operator to remit those taxes to the borough.

 

By adding taxes to your listing, you are also satisfying the requirement to provide receipts to guests to state the tax amount due separately from other rental charges.

 What are considered “taxable sales” for overnight accommodations?

Any service charge or fee that is paid by the customer that is a requirement to rent the accommodation is considered “taxable”. For example, if you require the customer to pay a cleaning fee to rent the accommodation, you should be collecting taxes on the rent rate AND the cleaning fee.

 

If the service charge or fee paid by the customer is an optional service paid by the customer and does not prevent the customer from renting the accommodation in normal circumstances, it is not considered “taxable”. For example, if you require a pet deposit from a customer to rent the accommodation and allow a pet to stay in the accommodation, regular circumstances would not require a pet deposit be taxed as the pet deposit is not a requirement to rent the accommodation, therefore you should be collecting tax on the rent rate only.

 

Please note that service fees charged by the website or platform (such as Airbnb or VRBO hosting fees) are not taxable.

 

If you have any questions on what is considered taxable fees or charges, please email tax@denaliborough.com for guidance.

 I made a mistake on a previous tax return, what should I do?

A tax amendment return form should be completed online to correct a previously filed return. Any under payment of taxes due should be submitted and paid to the Denali Borough immediately. Any overpayment of taxes can be requested as a check refund.

 

Email tax@denaliborough.com with any questions on amending a previously submitted tax return. Duplicate submission of quarterly tax returns may result in delayed processing of your return.

 What are tax exempt sales and what documentation is needed to record tax exemptions?

Overnight accommodations sales are exempt from tax collection if the rental is to a permanent resident living at a facility offering overnight rentals, a person who lives and works in the same facility that offers overnight rentals, or rent paid by a federal, state, or local government employee whose rent is paid directly to the operator using a purchase order or other direct payment method, such as a credit card indicating “Tax Exempt”. Payment made using a personal instrument, such as a personal credit card or cash, on a reimbursable basis are not tax exempt, and taxes are to be collected.

 

Tax exempt sales are reported on the quarterly tax return form and require supporting documentation showing the exempt reason. The documentation should include the date of sale, the dollar amount of sale, the government agency name, and indicate either Federal, State, or Local government. Acceptable documentation includes, but is not limited to, receipt of sale, invoice, or transaction record or statement.