AK SB5004

Establishes a statewide 3% sales and use tax on tangible personal property, services, and certain intangible property, effective January 1, 2018.

Authorizes the Department of Revenue to administer municipal sales and use taxes levied by cities and boroughs under AS 29.45.650 and AS 29.45.700, with municipalities able to collect their own taxes through December 31, 2021, after which the state assumes administration.

Allows municipalities to levy specific excise taxes on single categories of items such as bed taxes, car rental taxes, liquor taxes, and motor fuel taxes separate from general sales tax.

Provides extensive exemptions from sales and use tax including food for human consumption, government agencies, 501(c)(3) nonprofits, health care services, real property, and insurance premiums.

Authorizes the Department of Revenue to enter into the Streamlined Sales and Use Tax Agreement with other states to simplify tax administration and reduce compliance burden for sellers.