Business licenses will cost more for 2004

WASILLA -- Business owners throughout the Valley are advised that the price of an Alaska State business license has increased from $25 per year to $100 per year, as per the governor's amendment of House Bill 162-F last May. A two-year business license, the only variety currently available from the state, now costs $200 rather than $50. This change was proposed by the governor as part of larger state budget reforms. Current business owners whose licenses expire in December 2004 do not need to pay any additional fees or charges; however, any business changing its name, ownership, or line of business will need to purchase a new license.

The state business license is a general business permit for all 74,000 businesses in the state of Alaska; any individual, company, or partnership which regularly engages in business activity in Alaska must have a business license for that activity. This includes both nonprofit and for-profit organizations. Branch offices of larger businesses do not require individual licenses.

According to Jennifer Strickler, the Business License administrator at the Department of Community and Economic Development in Juneau, a new amendment is on the books that would allow a yearly state business license to be issued at the cost of $100 rather than a two-year, $200 license. This amendment would aid small business owners who have difficulty providing such a large lump sum. However, until this legislation is completed, businesses must continue to apply for two-year licenses.

Businesses in the cities of Palmer and Wasilla must also obtain a city business license and a borough business license. The cost for each of these licenses is $25, and their duration is one year. These licenses expire on Dec. 31. A $100 Tobacco Endorsement license is also required for any location or outlet where tobacco products are sold.

Business owners whose state licenses expire in 2004 must complete a business license renewal application available from the Alaska Division of Occupational Licensing by mail at P.O. Box 110806, Juneau, AK 99811-0806, or online at http://www.dced.state.ak.us/occ/buslic.htm. Borough licenses may be obtained at the Mat-Su Borough Finance Department at 305 East Dahlia Ave. in Palmer, while city licenses are available at the Palmer or Wasilla city hall.

Sole proprietors of small businesses are eligible to obtain a reduced-cost $100 business license. Institutions holding fishery, liquor, insurance, or mining licenses are exempt from state business license requirements, as are independent investment clubs. For more information, call the Division of Occupational Licensing at 465-2550.