Anchorage Retail Marijuana Tax Bond

In April, 2016, the Municipality of Anchorage, AK authorized a 5% sales tax on retail sale of marijuana and marijuana products. The Administration proposed Anchorage Ordinance 2016-49 which amended the Anchorage Municipal Code and enacted Chapter 12.50 - Retail Sales Tax on Marijuana and Marijuana Products which states

(AMC 12.50.160) “To ensure that a retailer performs its fiduciary responsibility to timely collect, account for, safeguard, and remit taxes levied by this chapter, the retailer shall provide a guarantee by one or more of the methods specified in this section. A guarantee is required to be provided by all retailers in the amount that the Chief Fiscal Officer estimates to be an average amount of annual sales tax collected by the retailer, a comparable retailer(s), industry averages, or $10,000.00 whichever is higher.”

The Anchorage Marijuana Retail Sales Tax Surety bond shall be payable to the municipality and shall be conditioned upon payment, in full, of the tax, including penalties and interest due and to become due and owing to the municipality by said retailer during the effective period of the bond under the provisions of AMC 12.50.

What is a Retail Marijuana Tax bond?

The surety bond provides a guarantee to the municipality that in the event the retailer fails to file the required marijuana tax return and requisite tax payment in a timely manner (must be filed and the retail sales tax remitted on or before the last day of the month following the month during which retail sales of marijuana and marijuana products occurred) that the surety company will become liable to the municipality up to the penal sum of the surety bond.

How much does a Anchorage Retail Marijuana Sales Tax bond cost?

As with most surety bonds, rates are dependant upon the creditworthiness of the applicant. For accounts that qualify, the base rate starts at 5% of the bond amount. Accounts with troubled or damaged credit can expect to pay a higher rate directly related to the severity of credit issues.  Apply for your Retail Marijuana Tax bond to get your quote today!

 

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