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Basic Business Taxes

Sales and use taxes:
The state levies neither a sales nor a use tax on businesses. Boroughs and cities may impose a sales and use tax of up to 7 percent on sales, rents, and services, and on use, storage, or consumption of tangible property within the city or borough limits.

Property tax:
The state imposes no property tax. Real property is subject to taxation by cities and boroughs. A separate annual tax of 20 mills is levied statewide on the true and full value of property used in unrefined gas and oil exploration, production, or pipeline transportation.

Mining/exploration credits:
The Alaska Exploration Incentives Act allows deduction of up to $20 million of qualified costs — including personnel, transportation, fuel, camp, communications, geochemical and geophysical, and contractual — for new mines. The exploration credits are site specific and may be assigned to successors in permit. The law provides 100 percent credit for eligible exploration costs against future mining license tax, corporate tax, and royalties on production. Credits are limited to no more than 50 percent of the taxes or royalties due the state in any given year and must be taken within 15 years of beginning production. To facilitate record keeping, the credits must be certified annually, with all submitted relevant data kept confidential for three years.