When not clearly otherwise indicated by the context, the following words and phrases, as used in this chapter, have the following meanings:
(A) "BUYER OR PURCHASER" means a person to whom a sale of property or product is made or to whom a service is furnished.
(B) "COMMISSION" means the Alaska Remote Seller Sales Tax Commission established by Agreement between local government taxing jurisdictions within Alaska, and delegated tax collection authority.
(C) "DELIVERED ELECTRONICALLY" means delivered to the purchaser by means other than tangible storage media.
(D) "DELIVERY CHARGES" means charges by the seller of personal property or services for preparation and delivery to a location designated by the purchaser of personal property or services including, but not limited to, transportation, shipping, postage, handling, crating and packing.
(E) "ENTITY-BASED EXEMPTION" means an exemption based on who purchases the product or who sells the product. An exemption that is available to all individuals shall not be considered an entity-based exemption.
(F) "LEASE" or "RENTAL" means any transfer of possession or control of tangible personal property for a fixed or indeterminate term for consideration. A lease or rental may include future options to purchase or extend.
(G) "LOCAL SALE" means a sale by a seller with a physical presence in a taxing jurisdiction, where the point of delivery is a location within the same taxing jurisdiction.
(H) "MARKETPLACE" means a physical or electronic place, platform or forum, including a store, booth, internet website, catalog, or dedicated sales software application, where products or services are offered for sale.
(I) "MARKETPLACE SELLER" means a person that makes retail sales through any physical or electronic marketplace that is operated by a marketplace facilitator.
(J) "MEMBER JURISDICTION" means a taxing jurisdiction that is a signatory of the Alaska Remote Seller Sales Tax Intergovernmental Agreement, thereby members of the Commission, and who have adopted the Alaska Remote Seller Uniform Sales Tax Code.
(K) "PHYSICAL PRESENCE" means, for purposes of section .040 of the Alaska Remote Sellers Uniform Sales Tax Code, a remote seller or marketplace facilitator who establishes any one or more of the following within a member jurisdiction:
(1) Has any office, distribution or sales house, warehouse, storefront, or any other place of business within the boundaries of the member jurisdiction;
(2) Solicits business or receiving orders through any employee, agent, salesman, or other representative within the boundaries of the member jurisdiction or engages in activities in this state that are significantly associated with the seller's ability to establish or maintain a market for its products in this state.
(3) Provides services or holds inventory within the boundaries of the member jurisdiction.
(4) Rents or Leases property located within the boundaries of the member jurisdiction.
A remote seller or marketplace facilitator that establishes a physical presence within the local taxing jurisdiction in any calendar year will be deemed to have a physical presence within the local taxing jurisdiction for the following calendar year.
(L) "POINT OF DELIVERY" means the location at which property or a product is delivered or service rendered.
(1) When the product is not received or paid for by the purchaser at a business location of a remote seller in a Member Jurisdiction, the sale is considered delivered to the location where receipt by the purchaser (or the purchaser's recipient, designated as such by the purchaser) occurs, including the location indicated by instructions for delivery as supplied by the purchaser (or recipient) and as known to the remote seller or marketplace facilitator.
(2) When the product is received or paid for by a purchaser who is physically present at a business location of a Remote Seller in a Member Jurisdiction the sale is considered to have been made in the Member Jurisdiction where the purchaser is present even if delivery of the product takes place in another Member Jurisdiction. Such sales are reported and tax remitted directly to the Member Jurisdiction, not to the Commission.
(3) When the service is not received by the purchaser at a business location of a remote seller, the service is considered delivered to the location where the purchaser receives the service.
(4) For products or services transferred electronically, or other sales where the remote seller or marketplace facilitator lacks a delivery address for the purchaser, the remote seller or marketplace facilitator shall consider the point of delivery of the sale to be the billing address of the buyer.
(M) "PRODUCT-BASED EXEMPTIONS" means an exemption based on the description of the product and not based on who purchases the product or how the purchaser intends to use the product.
(N) "PROFESSIONAL SERVICES" means services performed by architects, attorneys-at-law, certified public accountants, dentists, engineers, land surveyors, surgeons, veterinarians, and practitioners of the healing arts (the arts and sciences dealing with the prevention, diagnosis, treatment and cure or alleviation of human physical or mental ailments, conditions, diseases, pain or infirmities) and such occupations that require a professional license under Alaska statute.
(O) "RECEIVE OR RECEIPT" for purposes of this section and the definition of "POINT OF DELIVERY" means:
(1) Taking possession of property or product;
(2) Making first use of services;
(3) Taking possession or making first use of digital goods, whichever comes first.
The terms "RECEIVE" and "RECEIPT" do not include temporary possession by a shipping company on behalf of the purchaser.
(P) "REMOTE SALES" means sales of goods or services by a remote seller.
(Q) "RESALE OF SERVICES" means sales of intermediate services to a business where the charge for which will be passed directly by that business to a specific buyer.
(R) "SERVICES" means all services of every manner and description, which are performed or furnished for compensation, and delivered electronically or otherwise into a member jurisdiction, including but not limited to:
(1) Professional services;
(2) Services in which a sale of property or product may be involved, including property or products made to order;
(3) Utilities and utility services not constituting a sale of property or products, including but not limited to sewer, water, solid waste collection or disposal, electrical, telephone services and repair, natural gas, cable or satellite television, and Internet services;
(4) The sale of transportation services;
(5) Services rendered for compensation by any person who furnishes any such services in the course of his trade, business, or occupation, including all services rendered for commission;
(6) Advertising, maintenance, recreation, amusement, and craftsman services.
(S) "TAXING JURISDICTION" means a local government in Alaska that has a sales tax.
(T) "TRANSFERRED ELECTRONICALLY" means obtained by the purchaser by means other than tangible storage media.
(Am. Ord. 2020-07, passed 4-28-2020; Am. Ord. 2021-05, passed 5-25- 21)