Alaska Eliminates Transaction Threshold for Sales Tax

Effective January 1, 2025, the Alaska Remote Seller Sales Tax Commission will require registration only for businesses with over $100,000 in gross sales, eliminating the 200-transaction threshold for economic nexus.

Timeline

Alaska will eliminate the 200-transaction threshold from January 1, 2025.

Impact

The Alaska Remote Seller Sales Tax Commission released updated guidelines following the approval of amendments to the state's Remote Seller Uniform Code in July 2024, which were passed by the ARSSTC Board of Directors and Member Jurisdictions.

Starting January 1, 2025, the 200-transaction threshold will be removed, and businesses will only need to register if their gross sales exceed $100,000 in the current or previous year. This update simplifies economic nexus rules for remote sellers, who will now establish nexus in Alaska solely based on sales volume, not transaction count. Importantly, this gross sales figure includes sales made through marketplaces, highlighting the significance of online sales channels for compliance.

Businesses should evaluate their sales to determine eligibility for deregistration and ensure compliance with the new threshold.