The City of Klawock has a mayor/council form of government. It runs and operates the following utilities: water, wastewater, refuse collection, trailer court, landfill, boat harbor, liquor store, and a new boat ramp. There is a five and one half percent sales tax in Klawock, which 1/2 percent goes directly to education. There is no property tax in the City. Klawock is not part of an organized borough.