Wasilla, Palmer and Mat-Su Business Licenses: $25 City Licences After the Borough Repeal

Many guides still quote a $100 Matanuska-Susitna Borough business licence that covered two years. The borough repealed that licence effective April 3, 2024, so you can no longer buy it. What you still need depends on where you operate. Every Alaska business needs the statewide business license, and the cities of Wasilla, Palmer and Houston still issue their own $25 city licences. The cities also set their own sales taxes, and the borough still runs a bed tax and a tobacco excise tax.

This guide covers the items to gather, the licences to buy, the sales tax rules for each city, and the mistakes that cost Mat-Su business owners time. The figures are current as of October 15, 2026. This is informational content, not legal or tax advice. Confirm each figure with the agency named before you pay or file.

What You Need Before You Start

• Your business name, including any assumed name (DBA) if you will operate under a name other than your legal name
• The physical street address where you work, plus a mailing address. Give each city the address where you actually operate, since that decides which city's rules apply.
• Your entity type. If you formed an LLC or corporation, you need that filing on record with the Corporations Section. It is a separate step from the business license.
• A list of what you sell and which sales are taxable
• A payment method for the state fee ($50 for a one-year license) and each $25 city fee
• Contact numbers: Wasilla Finance at 907-373-9088 and the Mat-Su Borough Code Compliance office at 907-861-7822

Step 1: Confirm the Borough No Longer Issues a Business Licence

The Matanuska-Susitna Borough repealed its borough business licence effective April 3, 2024. Before the repeal it cost $100 and covered two years. If a website, lease or old checklist still asks for it, that information is out of date. Your obligations are now the state license plus any city licence for your location.

Step 2: Get the Alaska State Business License

Alaska issues one statewide business license under AS 43.70 through the Alaska Department of Commerce, Community, and Economic Development, Division of Corporations, Business and Professional Licensing. Alaska has no Secretary of State and no counties. The same division handles both business licensing and entity filings, so start at the Division of Corporations page.

The fee is $50 for one year or $100 for two years (Form 08-4181 for a new application). Renewal uses Form 08-4617 at the same fees. The only endorsement is a $100 per location tobacco endorsement, and a telemedicine business registration is $100. If your occupation is regulated under AS 08, you may also need a professional license.

Forming an LLC or corporation is a separate filing with the same division. The LLC articles fee is $250 (Form 08-0484). Paying for entity formation does not satisfy the business license requirement.

Step 3: Buy the City Licence for Your Location

Each city licenses separately, so the city where you operate decides what you owe. Current figures:

• Wasilla: $25 per calendar year. The licence is valid through December 31 and must be renewed by January 31.
• Palmer: $25 for the calendar year or any part of it. Buying late in the year does not reduce the fee.
• Houston: $25 per calendar year.

Not every Alaska city requires a general business licence. Anchorage, Ketchikan and Homer do not, so do not assume a neighboring city works the same way. If your business sits outside these three cities, confirm with the Mat-Su Borough which local rules apply to you.

Step 4: Work Out Sales Tax by City

Alaska has no statewide sales tax, and the Mat-Su Borough levies no borough sales tax. Sales tax comes from the city, so the rate depends on where the sale happens. The table below uses the Alaska Remote Seller Sales Tax Commission (ARSSTC) rate sheet dated October 1, 2026.

City	Sales tax rate	Tax applies to	Largest tax on one sale	Filing
Wasilla	2.5%	First $500 of each sale	$12.50	Monthly
Palmer	4%	First $1,000 of each sale	Confirm with Palmer	Confirm with Palmer
Houston	2%	First $500 of each sale	$10	Confirm with Houston

Under the Wasilla figures, a $2,000 sale is taxed only on its first $500, so the most tax on that sale is $12.50. Palmer's listed maximum does not reconcile with its 4% rate on a $1,000 cap, so get the exact figure from Palmer before you set prices or file.

Wasilla files sales tax monthly. Ask Wasilla Finance at 907-373-9088 how to register and which forms to use before your first sale.

Step 5: Check the Borough Taxes That Still Apply

The Mat-Su Borough still runs a bed tax and a tobacco excise tax. If you rent lodging or sell tobacco, call the borough's Code Compliance office at 907-861-7822 and ask whether your business is covered and how it reports. Do not assume that repealing the business licence also repealed these taxes.

Step 6: Check Zoning Before You Sign a Lease

Palmer and Wasilla banned commercial marijuana in 2016. Borough voters rejected a ban outside the cities. If your business plan depends on the location, ask the borough and your city about current rules before you lease space.

Step 7: Put the Renewal Dates on Your Calendar

• State business license: renew before it expires on December 31 ($50 for one year or $100 for two, Form 08-4617).
• Wasilla city licence: renew by January 31 each year.
• LLCs and corporations: file a biennial report every two years, not annually. The report costs $100 and is due January 2. Late penalties apply after February 1. The no-fee initial report is due within 6 months of formation.

Common Mistakes to Avoid

• Looking for the old $100 borough licence. It was repealed effective April 3, 2024, so it is not the item you need to buy.
• Treating the state license as a city license. The state license does not cover Wasilla, Palmer or Houston.
• Operating without the Wasilla licence. Operating without it violates Wasilla code. Fines vary, so ask Wasilla Finance at 907-373-9088 for the current amount.
• Applying one city's rate to another city's sale. Each city sets its own sales tax, and Alaska has no statewide rate to fall back on.
• Missing the January 31 Wasilla renewal. Put it on your calendar the same day you buy the licence.
• Mixing up the state business license with the biennial report. Paying one does not satisfy the other.
• Signing a lease before checking marijuana rules. Ask the borough and your city first, since the bans and voter results differ inside and outside city limits.

What Results to Expect

After you work through these steps, you may hold the state license, a city licence for your location, and a sales tax registration if you sell taxable goods. Timing depends on each office, so ask before you plan around a date. Sales tax registration may take longer, depending on the city's process. Your timeline and costs may differ from these figures, and agencies can change fees and rules, so treat this guide as a starting point and confirm each number before you rely on it.

When to Get Professional Help

For state tax questions, start with the Alaska Department of Revenue, Tax Division at tax.alaska.gov. Consult a qualified attorney or CPA for complex situations, such as operating in more than one city, signing a commercial lease, high sales volume, or choosing between LLC and corporate tax treatment.

This article is informational only. It is not legal or tax advice, and it does not create an attorney-client or accountant-client relationship. Verify every fee, deadline and rule with the agency named in this guide before you act on it.