Sales Tax & Marketplace Facilitator Rules in Alaska (2025): What Resellers Need to Know

Sales Tax & Marketplace Facilitator Rules in Alaska (2025): What Resellers Need to Know

What is ARSSTC?

  • ARSSTC stands for the Alaska Remote Seller Sales Tax Commission. It’s an intergovernmental group made up of Alaska cities/boroughs (municipalities) that levy local sales taxes. Sales Tax Institute+2ARSSTC+2

  • If a city is part of ARSSTC and has adopted the Remote Seller Code, then remote sellers (and marketplace facilitators) have to follow certain rules for sales made into those municipalities. ARSSTC+3ARSSTC+3Sales Tax Institute+3

Key Changes Effective January 1, 2025

  1. Transaction-count Threshold Repealed
    Before, Alaska required remote sellers/marketplace facilitators to exceed either:

    • $100,000 in gross sales or

    • 200 separate transactions into Alaska to trigger economic nexus (for ARSSTC code compliance). Avalara+2Default+2

    As of Jan 1, 2025, the transaction count threshold is removed, meaning only the gross sales threshold applies (for ARSSTC member jurisdictions). Avalara+1

  2. Economic Nexus Threshold Set at $100,000
    To have to collect and remit local sales taxes under ARSSTC, remote sellers and marketplace facilitators must have at least $100,000 in gross sales delivered into Alaska in the current or previous calendar year. Avalara+2TaxJar+2

  3. Marketplace Facilitators’ Responsibility
    Marketplace facilitators must collect and remit local sales tax on behalf of marketplace sellers when the facilitator/distributed sales meet the above threshold. The sales through the marketplace count toward the facilitator’s threshold. ARSSTC+2Avalara+2

Who Is Responsible Under These Rules

Role When You Must Collect / Register What Are You Responsible For
Marketplace Facilitator(like Amazon, Etsy, etc.) If their total sales into Alaska (including those by third-party sellers on the platform) are ≥ $100,000 Collect & remit local sales tax for all marketplace sales into ARSSTC member jurisdictions; register with ARSSTC; file required reports. Avalara+2ARSSTC+2
Marketplace Seller If you also make sales directly (outside of the marketplace) and your combined sales (direct + marketplace-through) into Alaska are ≥ $100,000 Collect/remit tax on your non-marketplace/direct sales; you do not need to pay twice or register separately for marketplace-sales you don’t facilitate. The marketplace facilitator handles those. ARSSTC+1

How to Register, File, & Comply

  • Register with ARSSTC using the filing portal. If you meet or exceed the $100,000 gross sales threshold, you must register within 30 days of that happening. ARSSTC+1

  • Sales tax collection must be turned on for member jurisdictions in which sales are delivered. If immediate activation is impossible, you must coordinate with ARSSTC to set a timeline. ARSSTC

  • Filing frequency is monthly unless your sales or transactions are small (some jurisdictions may allow less frequent filing if under certain volume / transaction limits). ARSSTC

  • Record-keeping: Maintain documents and records for all sales, including exempt transactions, for at least 3 years. ARSSTC+1

What Resellers Should Watch Out For

  • If you’re selling in multiple channels (marketplace + your own site), count all sales into Alaska toward the $100,000 threshold. Avalara+1

  • Just because the state has no state-level sales tax doesn’t mean you’re exempt—many local municipalities do. If they’re ARSSTC members, you’re bound by the local tax rules. Sales Tax Institute+1

  • Even if you no longer meet the $100,000 threshold, you must continue collecting and remitting tax until you formally cancel your registration. Default+1

Case Study: Hypothetical Reseller “Alaska Goods Co.”

Background: Alaska Goods Co. sells handmade crafts on Etsy, also through their Shopify store, and ships to several ARSSTC member municipalities in Alaska.

  • In 2024, combined sales into Alaska were $90,000.

  • In early 2025, sales rose— including marketplace sales— to $120,000 delivered into Alaska.

What they needed to do in 2025:

  1. Recognize that they’ve crossed the $100,000 gross sales threshold as of Jan 1, 2025.

  2. Register with ARSSTC within 30 days of crossing that threshold.

  3. Begin collecting local sales taxes (for ARSSTC member cities where they have delivery) on all facilitated and direct sales into those jurisdictions.

  4. File returns using the ARSSTC portal, maintain 3 years of records, and include those municipalities’ tax rates.

Potential Benefit: Because they sell through a marketplace (which counts toward the threshold), they avoid duplicate registration for marketplace sales—they still collect on direct sales only. Helps them stay compliant and avoid penalties or surprises.

Common Questions and FAQs

  • Does every Alaska city charge this tax? No. Only those that are part of ARSSTC and have adopted the Remote Seller Code. Some cities/boroughs do not require local sales tax or participation. Sales Tax Institute+1

  • What about marketplace sales—do I have to do anything? If the marketplace facilitator collects and remits tax, then you as a marketplace seller generally don’t need to report those marketplace-facilitated sales again. But you need to track your direct sales. ARSSTC

  • Is digital goods or services taxable? It depends on the municipality. Many local rules under ARSSTC define what’s taxable (goods, tangible personal property, sometimes digital services or SaaS). Check the local jurisdiction. Afternoon+1

What You Should Do Now (Action Plan)

  1. Check whether you sell into ARSSTC member jurisdictions. If so, check their local tax rates.

  2. Compute your total Alaska-delivered sales (marketplace + direct) for the past year to see if you meet $100,000.

  3. If yes, register with ARSSTC, enable tax collection for relevant cities.

  4. If no longer meet threshold, consider whether to cancel registration—but don’t stop before formal cancellation.

  5. Set up your marketplace listings / direct site to collect local sales tax where required.

  6. Keep clean records of all sales and exemptions.

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