Those wanting to drive for Uber or Lyft have some paperwork to do.
Drivers of transportation network companies (TNCs) such as Uber and Lyft are required to register with the City and Borough of Juneau sales tax office prior to starting work.
The CBJ Sales Tax Guidelines state that a company or individual must register with the sales tax office before conducting business. TNC drivers collect 5 percent sales tax and are required to file quarterly with the sales tax office.
The TNC companies will be involved in the tax process, keeping records of all transactions and getting receipts to riders. City officials are currently talking with Uber and Lyft representatives to find out exactly what role the companies plan to play in the sales tax process.
The State of Alaska also requires TNC drivers to get an Alaska Business License before driving. Uber and Lyft began operating last week, following Gov. Bill Walker’s signing of House Bill 132 that allowed TNCs to operate in the state.
The fact that the companies have allowed unregistered drivers to conduct business in the city is a violation of the CBJ code. At Monday night’s Assembly meeting, CBJ Attorney Amy Mead said she’s still determining what the penalty is in this case.
“Under our code,” Mead said, “any driver who is providing sales, services and not having registered with the sales tax office and not collecting sales tax is violating the sales tax code, which is a criminal or civil violation.”
The CBJ penned multiple letters asking the Legislature to reconsider because the bill gives very little control to local governments when it comes to TNCs. Mead said there are some cases where Uber has worked out agreements with cities where the company takes care of sales tax on behalf of its drivers, but it’s rare.
“We haven’t discussed that,” Mead said Monday night. “We haven’t gotten past where we are right now, which is Uber saying, ‘We are not going to register as a sales tax entity.’ We are, right now, drafting a response to that.”
• Contact reporter Alex McCarthy at alex.mccarthy@juneauempire.com.
