The CBJ Sales Tax Cap, which provides a cap on the amount of sales tax collected for a single item or service, will be increased effective January 1, 2024. The new cap level will be $14,300.
The sales tax code stipulates an adjustment to the level of the cap every two years, consistent with Consumer Price Index (CPI) data over that period for Urban Alaska. Based on a review of the 2022-2023 Urban Alaska CPI data, the single item and single service cap level will be increased from the current level of $12,800 to $14,300. As a result, only the first $14,300 of the selling price of a single item or single service will be subject to the CBJ Sales Tax.
Previous transactions subject to the tax cap would have resulted in sales tax collected of $640. With this increase, the amount of sales tax to be collected on a “capped” single item or single service is now $715.
Merchants who claim either a single item or single service cap exemption should update their systems accordingly so that the correct amount of sales tax will be collected beginning January 1, 2024.
Thank you for your effort in keeping in compliance with the CBJ Sale Tax code. Please contact the CBJ Sales Tax office at Sales.Tax.Office@juneau.gov or (907) 586-5215 ext. 4901 if you have any questions on this matter.