Alaskan Town’s Sales Tax for Some Nonprofits Brings Confusion

January 29, 2017; Peninsula Clarion (Kenai, AK)

What’s fair in the taxation of nonprofits by local municipalities? NPQ has covered the issue of payments in lieu of taxes issue extensively; it mostly affects universities and hospitals—the eds and the meds. But there’s another realm of charges—fees and taxes—that hits smaller and larger operations alike. For more background on this, read “Death by a Thousand City Fees.”

Recently in Alaska, the Kenai Peninsula Borough Assembly passed a set of tax reforms that included several new sources of revenue. One of them removed the exemption from collecting sales tax by nonprofits operating regular storefronts, like the Salvation Army.