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Large Passenger Vessel Gambling Tax

Frequently Asked Questions





Sections:
  • General Questions

  • Tax Returns and Payments



  • General Questions

    Who is liable for the large passenger vessel gambling tax?
    What types of gambling activities does the LPV gambling tax apply to?
    How is adjusted gross income (AGI) determined?
    How is the Alaska adjusted gross income (AGI) from gaming or gambling determined?
    What is the tax rate?


  • Who is liable for the large passenger vessel gambling tax?

  • The tax is imposed on the operator of gaming or gambling activities aboard large passenger vessels in the state.

  • What types of gambling activities does the LPV gambling tax apply to?

  • The tax applies to playing cards, dice, roulette wheels, coin-operated instruments or machines, or objects or instruments used, designated, or intended for gaming or gambling on any large passenger vessel in the marine waters under the jurisdiction of the State of Alaska.

  • How is adjusted gross income (AGI) determined?

  • AGI is the difference between gaming wins and losses before deducting expenses as computed under the United States generally accepted accounting principles.

  • How is the Alaska adjusted gross income (AGI) from gaming or gambling determined?

  • The number of gaming or gambling hours occurring in the waters under the jurisdiction of the State of Alaska is divided by the total gaming or gambling hours during the voyage to calculate the percentage of gaming or gambling hours in Alaska. The percentage of gaming or gambling hours in Alaska is then multiplied by the total adjusted gross income from gaming or gambling during the entire voyage to determine the Alaska adjusted gross income from gaming or gambling.

  • What is the tax rate?

  • The tax rate is 33% of the Alaska adjusted gross income.

    Tax Returns and Payments

    Who must file a tax return?
    When is the tax return due?
    What if the due date is on a weekend or holiday?
    How do I file my tax return?
    How do I get an extension of time to file?
    What happens if I do not file my tax return by the due date?
    When is the tax payment due?
    How can I make a tax payment?
    What happens if I do not submit my payment by the due date?
    Will I be charged interest?


  • Who must file a tax return?

  • The operator of gaming or gambling activities aboard large passenger vessels in the state must file a tax return.

  • When is the tax return due?

  • Tax returns are filed annually. The tax return for a calendar year is due April 15 of the next calendar year.

  • What if the due date is on a weekend or holiday?

  • If the due date falls on a weekend or holiday, the tax return is due the next business day. A holiday means an Alaska state holiday or a bank holiday observed by the Federal Reserve System. Holidays include Seward’s Day in March and Alaska Day in October but do not include other states’ holidays such as Emancipation Day.

  • How do I file my tax return?

  • Effective July 1, 2017, all tax returns must be filed electronically using Revenue Online. If you are unable to file a return electronically, please contact the Tax Division at 907.269.6620.

  • How do I get an extension of time to file?

  • An operator may file an application for an automatic six month extension of time to file. The application must be filed on or before April 15. An extension of time to file is not an extension of time to pay. Please submit the extension application using Revenue Online.

  • What happens if I do not file my tax return by the due date?

  • Returns that are not filed by the due date are subject to a failure to file penalty of 5% of the unpaid tax for each 30 day period or portion of a period the return is late, up to a maximum of 25%.

  • When is the tax payment due?

  • The tax payment has the same due date as the tax return. The weekend and holiday rule also applies to payments. The extension to file does not extend the time to pay.

  • How can I make a tax payment?

  • Payments can be made by Automated Clearing House (ACH) debit payments using Revenue Online. Payments can also be made by wire transfer, check, or cash.

    Vouchers to include with your payment are available in Revenue Online and include all necessary instructions.

    The Department of Revenue cannot accept ACH credit or credit card payments.

    Please note that if your total payment exceeds $150,000 you are required to pay electronically or by wire transfer.

  • What happens if I do not submit my payment by the due date?

  • If the full amount of tax is not paid when due, a failure to pay penalty of 5% of the unpaid tax may be assessed for each 30 day period or portion of the period the payment is late, up to a maximum of 25%.

    If during any period, or portion of a period, both the failure to file and failure to pay penalties are applicable, only the failure to file penalty is imposed.

  • Will I be charged interest?

  • Under Alaska Statute 43.05.225, interest will be assessed on any unpaid or delinquent tax. Interest is compounded quarterly at the applicable rate each quarter. See here for the current interest rate.