Marijuana Retail Sales Tax
Subsequent to voter approval of Proposition 2 on April 5, 2016, authorizing a 5% sales tax on the retail sales of marijuana and marijuana products, the Administration proposed Anchorage Ordinance (AO) 2016-49, amending the Anchorage Municipal Code (AMC) by enacting Chapter 12.50 Retail Sales Tax on Marijuana and Marijuana Products.
At the May 10, 2016 regular Assembly meeting, the Assembly passed and approved AO 2016-49(S) As Amended.
AO 2016-49(S), As Amended (.pdf)
AMC 12.50 establishes the requirements and procedures for the administration, collection, and enforcement of the marijuana retail sales tax.
Certificate of Registration Process
Obtaining the Certificate of Registration authorizing your business to collect the marijuana retail sales tax is the final step before sales to consumers can begin. Treasury will not issue a Certificate of Registration until the following events occur:
- the State of Alaska (SOA) Marijuana Control Board (MCB) has issued its retail marijuana store license;
- the Municipal Clerk's office has issued its retail sales establishment license; and
- information required by Treasury to process an application has been provided, including security for fiduciary performance (see Informationals section) pursuant to AMC 12.50.160.
Note that each event above includes additional steps, such as obtaining a State of Alaska business license (ABL), registering a corporation or LLC with the SOA Dept. of Commerce Corporations Division, and obtaining a municipal special land use permit.
Application for a Certificate of Registration
The application is designed to be completed online and printed before initialing and signing. The form will allow you to add additional lines as needed for some of the required information. If you choose to not complete the fillable form online, you may use the following continuation schedules for the sections where you may need more than the default space provided in the main application form.
Note: You will need Acrobat Reader 9.0 or later to view and use the fillable forms; click here to download the latest version from Adobe.
NOTE: Certificate of registration expires September 30 following the issuance date, unless the certificate states otherwise. Certificate must be renewed each year prior to September 30. Renew certificate of registration by submitting a new application.
Continuation schedules (if needed):
The tax return must be filed and the retail sales tax remitted on or before the last day of the month following the month during which retail sales of marijuana and marijuana products occurred. A return must be filed by a licensee even if no retail sales of marijuana and marijuana products occurred during the month covered. See AMC 12.50.170 for details of who must file.
The tax return must state the quantity and retail sales amount for each category of marijuana and marijuana products sold during the month. If there were no sales for a given category, enter zero on the applicable line of the tax return.
The tax return is a fillable PDF.
Tax returns not timely filed and/or sales tax not timely remitted in full shall automatically incur penalties for failure to timely file and/or pay. See AMC 12.50.280 for additional details on these penalties.
Tax returns for which sales tax has not been timely remitted in full shall automatically incur interest on the unremitted tax balance due. See AMC 12.50.270 for additional details on interest.