Local Government
The City and Borough of Sitka is a unified home rule municipality created in 1971. It is governed by the Assembly, composed of seven members, one of whom is the mayor. The Chief Administrative Officer is the Municipal Administrator who serves at the pleasure of the Assembly. The Borough shares governmental responsibilities with the Sitka Tribe of Alaska, a federally recognized Indian Tribe.
City and Borough Taxes
One of the greatest incentives for doing business in Alaska is low taxation. The City and Borough of Sitka imposes the following taxes which are comparatively lower than most cities in Alaska and the lower 48.
Sales Tax:
April to September 6%;
October to March 5%
Residential rent is exempt from sales tax.
Excise Tax:
On cigarettes 50 mills adjusted annually based on Anchorage CPI;
On tobacco products 45% of wholesale price
Bed Tax = 6%
Property Tax = 6 mills adjusted by the Assembly every June
Property Tax on Vessels:
Class and vessel size Annual property tax
Class 1 - less than 15 feet in length $20.00
Class 2 - 15 to less than 20 feet in length $30.00
Class 3 - 20 to less than 30 feet in length $50.00
Class 4 - 30 to less than 50 feet in length $100.00
Class 5 - 50 or more in length $200.00
Fuel Tax:
Sitka Airport fuel flow tax $0.02/gallon
State Taxes
There are no state personal income, sales, gross receipts, inventory, or ad valorem taxes in Alaska. There is a net corporate income tax that is quite competitive with that of other western states.
Corporate Income Tax¹ 1% to 9.4%
Individual Income Tax = NONE
Statewide Sales Tax = NONE
Inheritance Tax = NONE
Intangible Personal Property Tax= NONE
Motor Fuel Taxes -
gasoline, diesel, gasohol
highway 8¢/gallon
marine 8¢/gallon
aviation gas 4.7¢/gallon
Development & Incentives
Small Business Guaranteed Loan Program
"There shall be established the small business guaranteed loan program. A majority of a committee composed of the administrator and two members of the long-range planning and economic development commission designated by that commission is authorized to issue on behalf of the city and borough guarantees of private-sector loans to small businesses under the conditions set out in this chapter." (Ord. 03-1719 § 4 (part), 2003.)
Fiscal Year 2010 Municipal Budget
Revenues Total = $51,601,720
Expenditures Capital & Operating Total = $53,988,520
City Departments
| Building | Electric | Finance |
| Fire | Harbor | Harrigan Centennial Hall |
| Human Resources | Kettleson Memorial Library | Municipal Clerk |
| Parks & Recreation | Planning | Police |
| Public Works | Sitka Mountain Rescue |
Boards and Commissions
To view the list of Boards and Commissions CLICK HERE.
