The following shall be exempt from the sales tax imposed by the city:
(a) Casual and isolated sales not made in the regular course of business;
(b) Sales of insurance and bonds of guaranty and fidelity;
(c) Funeral charges and services;
(d) Sales by churches, except where such organizations are engaged in business for profit or savings or competing with other persons engaged in the same or similar business;
(e) Sales, services and rentals directly to the governments of the United States, the state, the city, the Aleutians East Borough, or any instrumentality or political subdivision thereof; provided such sales shall have written authorization or purchase order number to be granted an exemption prior to sale; provided, however, that this exemption shall not apply to the sale of materials and supplies to contractors for the construction, manufacture, or production of property or rendering of services for sale to such government units or agencies pursuant to contract, in which event the contractor shall be deemed the buyer, subject to the payment of the tax;
(f) Sale of real property; excepting the commissions earned by real estate agents shall be taxable as a sale of services;
(g) Catalog sales and shipments by the seller via common carrier to communities or establishments beyond the city limits;
(h) Rental of single family homes, apartments, trailers, and other dwelling units when used for residential purposes and rented for a term of one month or more, including accessory structures subordinate to residential use, such as garages and sheds. The rental of rooms for residential purposes by hotels, motels, boarding houses, bed and breakfasts, and other such hostelries shall be taxable regardless of the length of rental;
(i) Medical services performed by licensed medical doctors, mid-level practitioners, dentists, optometrist, osteopaths and chiropractors; sales of medicines and drugs prescribed by medical doctors; and hospital/clinic services;
(j) Passenger fares of commercial airlines or steamship companies;
(k) Services rendered by banking or savings and loan institutions, trust companies, or credit unions;
(l) Nursery and baby sitting services;
(m) Sale of products or services provided by the governments of the United States, the state, the city, the Aleutians East Borough, or any instrumentality or political subdivision thereof;
(n) Purchases made with food stamps or similar type certificates issued by the United States Government;
(o) Sale of food supplies to cafes, restaurants and other establishments where food is sold to the public for consumption in the normal course of business of cafes, restaurants and other such establishments;
(p) Rental of real property for commercial, business, or industrial uses;
(q) Sale of newspapers and periodicals;
(r) Sales, services, or rentals that the city is prohibited from taxing by the constitution or laws of the United States or the State of Alaska;
(s) Gross receipts derived from the sale or use of materials or services to or by any person in connection with the construction of an improvement to real property for a tax exempt entity for which an agreement for payments in lieu of tax has been approved under § 6.10.125 of this Code;
(t) Sales of processed seafood products made by a seller who has:
(1) Collected a raw seafood tax on the purchase of the same seafood prior to processing; and
(2) Has entered into a payment in lieu of taxes agreement with the city.
(Ord. 93-4, passed 12-8-92; Am. Ord. 00-02, passed 6-15-00; Am. Ord. 2007-02, passed 6-12-07; Am. Ord. 2016-02, passed 2-9-16)