Business Advantages & Incentives

Low Taxation.
The State of Alaska does not have a sales, inventory, gross receipts or personal income tax. The state does collect a Corporate Income Tax, which applies to the net taxable income allocated and apportioned to the state. More information.

The Petersburg Borough collects property and sales taxes. Property taxes are levied on real property and based on fair market value at rates ranging from 4-10 mils. The municipal sales tax is 6%. Outside sales and resales are exempt. More information.

Business Licensing

Anyone engaging in business activity in Alaska must have a state business license for that activity. If that activity involves the sale of tobacco, a tobacco endorsement is necessary as well. Business licenses are current for two years and cost $50. In addition to the state business license, professional or occupational licenses are necessary for some activities including health care, law and construction among others. More information.

The Petersburg Borough also requires businesses to register for sales tax through the Finance Office. Registration is free. More information.

Incentives

• Economic Development Power Rate. Economic development power rate assists new large commercial businesses to control costs while establishing their operation. The program provides a low cost flat rate for new businesses for up to three years. More information.
   
• HubZone. Petersburg-based businesses may qualify for HUBZone federal contracting preference. More information.
   
• Work Opportunity Credit. This is a federal tax credit program that encourages employers to hire new employees from targeted groups. An employer can claim 40 percent of up to $6,000 of an employee’s first years wages for a maximum credit of $2,400. More information.
• Fire Protection Exemption. Up to 2% of building value may be exempt from property tax if the structure contains an approved fire protection (extinguishing) system.  More information.