Alaska is the nation’s largest state in terms of land area – more than twice as large as Texas – but is in the lowest five when it comes to population. It is among the lowest in terms of state and municipal tax burden for its residents, but there are a few things to keep in mind when shopping for a vehicle in Alaska:
- There is no statewide sales & use tax, but some municipalities do impose a sales & use tax. So the tax component of your lease will be dependent on your specific residence city within the state.
- When registering a vehicle in Alaska all leased vehicles are treated as commercial vehicles for determining the fee. Then, commercial vehicles are rated based on weight (GVW). Additionally, in addition to the base level state charge for the registration, many municipalities have a surcharge, and it varies by city.
- There is no cap on the dealer documentation fee (“doc fee”) that the dealer is allowed to charge. Most likely the dealer does not negotiate this fee, but the lack of cap means there could be variance dealer to dealer in how much is charged. According to autocheatsheet.com the average doc fee charged in Alaska is about $200.