For many years, Alaskans have enjoyed a special sales tax exemption in the state of Washington. One Petersburg resident explained that when traveling in Washington, Alaska residents could show their driver's license and be exempt from sales tax on their purchases. According to the Washington state Department of Revenue, this exemption was open to nonresidents who were purchasing "tangible personal property, digital goods, and digital codes, for use outside this state [Washington]." The exemption was open to states, U.S. possessions, or Canadian territories that do not have a sales tax of their own, such as Alaska.
Some Alaskans may not be aware of this, but Washington state has recently altered this exemption.
According to the department of revenue, as of July 1 this year, the retail sales tax exemption for certain nonresidents, Alaskans included, is no longer available at the point of sale. This means that an Alaskan visiting Seattle, for example, can no longer avoid the state sales tax by showing they live in a different state. However, traveling Alaskans need not worry too much. It is still possible to save money, but it now requires some additional paperwork.
"Instead, these consumers may request a refund from the Department of Revenue for the state portion of the sales tax they paid," the department of revenue website reads.
According to their website, nonresidents of Washington can request these refunds beginning in January of 2020, for any purchases made between July and December of this year. The refund requests must include copies of receipts and proof of nonresidency. The website also states that the request must total $25 or more in sales taxes paid, and refund requests are limited to one per person for the calendar year.
For more information, visit http://www.dor.wa.gov under the "Retail sales tax" tab
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