City clarifies sales tax responsibilities for Sitka business owners

June 25, 2026 - 03:02

The Sitka Assembly voted 6-2 on Tuesday night to approve a new ordinance that spells out the sales tax duties for local business owners. The measure, which passed after a lengthy public hearing, aims to clear up confusion over who is responsible for collecting and remitting the city's sales tax in certain transactions.

Under the updated rules, businesses must clearly display their tax collection status on receipts and invoices. The ordinance also defines when a third-party vendor, such as an online platform, is liable for the tax instead of the individual seller. Assembly members said the change was needed after several disputes between the city finance department and merchants over unpaid taxes.

Some business owners spoke against the ordinance, arguing it adds another layer of paperwork. But supporters said it protects honest operators who follow the rules. The new law takes effect in 90 days, giving businesses time to adjust their billing systems. City staff plan to hold two workshops next month to walk through the new requirements.