Chapter 4.16
SALES AND USE TAX
Sections:
4.16.010 Definitions.
4.16.020 Interpretation.
4.16.030 Imposition – Rate.
4.16.040 Exemptions.
4.16.050 Exemption certificates – Applications.
4.16.060 Tax added to sales price.
4.16.070 Bracket collection schedule.
4.16.080 Situs of taxable transaction.
4.16.090 Record of sale.
4.16.095 Receipts – Posting of signs.
4.16.100 Books, records and accounts.
4.16.110 Returns and remittances.
4.16.120 Termination, sale or transfer of retail business.
4.16.130 Sales tax trust fund.
4.16.140 Interest for delinquency.
4.16.150 Estimated tax.
4.16.160 Accelerated returns.
4.16.170 Investigation and audits.
4.16.180 Penalties.
4.16.190 Protest of tax and appeal by buyer.
4.16.200 Protest and appeal by seller.
4.16.210 Refund of excess remittance.
4.16.220 Review by finance committee.
4.16.230 Appeal to city manager.
4.16.240 Rulings and regulations.
4.16.250 Time extensions.
4.16.260 Disposition of tax information.
4.16.270 Civil enforcement remedies.
4.16.280 Liens.
4.16.290 Liability of responsible individuals.
4.16.300 Repealed.
4.16.310 Tax evasion.
4.16.320 Use tax.
4.16.010 Definitions.
For purposes of this chapter, certain words and phrases are defined as follows:
A. “City” means the city of Bethel.
B. “Common carrier” means a person engaged in transporting passengers or goods or both for valuable consideration in the normal course of the business of that person, or a seller engaged in transporting directly to a common carrier goods sold by him or her in a retail sales transaction directly to a buyer residing outside the city.
C. “Finance director” means the finance director of the city or the designee of the finance director; the designee may be an employee of the city, an accountant or other person who is not an employee of the city, a certified public accounting firm or other type of firm.
D. “Goods,” “fixtures,” “investment securities,” “general intangibles,” “accounts,” “chattel paper,” “documents,” “instruments” and “money” and their singulars, have the meanings given the terms by the Alaska Uniform Commercial Code, AS 45.01 et seq., as amended.
E. “Person” means an individual, partnership, cooperative, association, joint venture, corporation, estate trust, business, receiver, or any entity, group or combination acting as a unit.
F. “Responsible individual” means any individual, including a group of individuals such as a board of directors, partnership, joint venture, corporation or other entity, who has the responsibility to, is required to, has the authority to, or has the authority to direct or cause another person to:
1. Collect the tax levied under this chapter;
2. Segregate funds in lieu of the direct collection of the tax under this chapter;
3. Remit over to the city taxes required to be collected under this chapter; or
4. Determine which creditors of the seller are to be paid; and may include, but is not limited to, such officers and employees of a seller as the chief executive officer, president, vice president for finance, controller, comptroller, treasurer, bookkeeper, majority shareholder, finance director, manager, partner, managing partner, chief fiscal or financial officer and accountant if they possess any of the authority, responsibility or duties described in this definition.
G. “Sale” and “sales transaction” mean any sale, lease, rental, transfer or assignment of any right, title or interest in any goods, fixtures, real property, things in action, investment securities, future goods, goods to be severed from realty, admission privilege, right of participation or attendance, general intangibles, accounts, chattel paper, documents, instruments or money, and any sale, provision or performance of services, for valuable consideration.
H. “Seller” means every person making a sales transaction to a buyer or consumer, every person renting goods, real or personal property and every person performing services, for valuable consideration.
I. “Selling price” means the present fair market value of all detriment incurred by the buyer in the sales transaction, including cash payments, debt obligations and the present value of goods, personal property, realty or service that form part of the consideration for the sale without deduction for the value of trade-ins, markups, taxes on, collected or paid by the seller or a prior owner or holder of the subject of the sale, invoice prompt payment discounts or discounts not available to all purchasers.
J. “Services” means and includes all species of acts, activities, labor, advise, consultation, advertising, brokering, retainers, representation and intercession but does not include services rendered to an employer by an employee.
K. “Single-sale unit” means that sale of a separate, single item or service which is customarily sold, advertised, contracted for sale or sold in the normal course of business as a separate and single item or unit or by a single unit of measurement (i.e., per gallon, ton, hour, day, week, month, foot, sack, yard, pound, piece, group, each, box, set, package, or other common unit of measurement). A single-sale unit shall include a sale by contract, quote, bid or other lump sum amount only if the sale is based on and computed as a single bid, quote, sum or package price rather than as an accumulation, sum or aggregation of prices of separately identifiable or separate unit prices as defined above.
L. “Storage, use or consumption” means the storage, use or consumption in, or the importation into, the city of an alcoholic beverage purchased or acquired from a source outside the city. [Corrected in 2/08 supplement; Ord. 98-27 § 2.]
4.16.020 Interpretation.
A. The application of the tax levied under this chapter shall be broadly construed and shall favor inclusion rather than exclusion.
B. The exemptions from the tax levied under this chapter shall be narrowly construed against the claimant and in favor of taxation. [Ord. 98-27 § 2.]
4.16.030 Imposition – Rate.
There is levied and shall be collected a sales tax on all sales transactions in the city unless specifically exempted under this chapter. The tax is six (6) percent of the selling price. [Ord. 09-21 § 4; Ord. 08-01 § 2; Ord. 98-27 § 2.]
4.16.040 Exemptions.
The following sales are exempt from the tax levied under this chapter only in accordance with the limitations provided for in this section:
A. Casual and isolated sales, services or rentals by a seller who does not regularly engage in the business of selling such goods, services or rentals are only exempt if such sales, services or rentals do not occur for more than five (5) days in a calendar year, and are not made through a dealer, broker, agent or consignee. A casual and isolated rental of real property by a seller who does not regularly engage in the business of renting real property is not exempt except as provided in subsection C of this section. A casual and isolated sale of real property by a seller who does not regularly engage in the business of selling real property is not exempt except as provided in subsection X of this section;
B. Sales and rentals of goods and the sale or performance of services resulting from orders received from outside the city by mail, telephone or other public modes of communication if delivery of the goods ordered or rented is made outside the city by mail or common carrier, or if the performance of the services ordered occurs outside the city. The portion of the services ordered from outside the city that are performed inside the city are not covered under this exemption, and shall be fully taxable;
C. Except as provided in this subsection, that portion of the selling price of a single-sale unit in excess of ten thousand dollars ($10,000) and that part of a periodic rental price of all types of property in excess of ten thousand dollars ($10,000) are exempt. A periodic rental price is the amount owed on a monthly or more frequent period. Rentals with a payment period exceeding one (1) month are commuted for sales tax purposes as though payment were to be made on a monthly basis.
That portion of the selling price of an all terrain vehicle (ATV), snow machine, boat, or boat motor in excess of three thousand five hundred dollars ($3,500) is exempt regardless of whether or not such items are purchased simultaneously, or are invoiced or otherwise billed on the same billing document.
That portion of the periodic rental price of single sale unit of real property in excess of fifty thousand dollars ($50,000) is exempt;
D. Dues paid to clubs and other organizations solely for the privilege of membership;
E. A sale of goods made to a person in a foreign country for shipment out of the United States except where the goods or products sold are exported in bond for reentry into the United States;
F. A sale the city is prohibited from taxing under the Constitution and laws of the United States or the Constitution and the laws of the state of Alaska is exempt. A sale made directly to the state, its political subdivisions, or the U.S. government is exempt. A sale to a federal or state contractor, or a contractor of a political subdivision of the state, is not exempt even if the government pays directly for the purchase unless the contractor and government cannot be viewed as separate entities. A sale to an employee of the state, its political subdivisions, or the federal government is only exempt when the government employee provides proof that the sale is for government business by paying for the sale with a government voucher, purchase order, check, or warrant, or providing other verifiable documentation to the seller to allow the seller to readily determine that the sale is for government business;
G. Freight and wharfage charges, whether arising out of foreign, interstate or intrastate commerce are exempt. Warehouse and storage services are not exempt. Transportation of goods, equipment, or other property from one (1) point to another within the city limits by commercial movers is not exempt;
H. The sale of insurance policies, guaranty bonds and fidelity bonds;
I. The lending of money and interest charged for loans, and other services provided by banks, savings and loans institutions, credit unions, and investment banks are exempt, except for ATM charges, safety deposit box charges, and cashiers and traveler check charges;
J. The sale of food and beverages to students and staff in primary or secondary schools or college cafeterias or lunchrooms that are operated by the school primarily for teachers and students are exempt as long as such sales are made during regular school hours and such sales are not sold for profit. The sale of food and beverages to patients and staff as part of the services provided by local, state, federal government agencies, hospitals and nonprofit organizations licensed to provide patient services by the state of Alaska are exempt as long as such sales are made during regular operating hours of the government agency, hospital, or nonprofit organization, and are not sold for profit;
K. The sale of goods to a wholesaler, retailer or other purchaser will only be exempt if such purchaser resells the same goods, in the same or altered form, and the resold goods will not be exempt from the tax levied under this chapter. In order to obtain the exemption provided for in this subsection, the purchaser shall display or provide to the seller at the time of the sale a copy of the purchaser’s current Bethel business license. The Bethel business license must be for the class of activities involving the resale of the type of goods for which the exemption is sought. If the purchaser buys goods for resale in accordance with this subsection and for personal or other use at the same time, only the goods that are sold for resale in accordance with this subsection shall be exempt. Supplies, services, tools, repair services, equipment or any other goods or services purchased to support a business but not for resale in accordance with this subsection are not exempt;
L. The sale of goods to a purchaser that will be transferred to another person in a sale or performance of a service is exempt only if the purchaser displays or provides to the seller at the time of the sale a copy of the purchaser’s current Bethel business license. The Bethel business license must be for the class of activities involving the resale of the type of goods for which the exemption is sought. If a purchaser buys goods for transfer in accordance with this subsection and for personal or other use at the same time, only the goods that are sold for transfer in accordance with this subsection shall be exempt. Labor, tools, supplies, equipment rentals or any other goods or services purchased to prepare goods for transfer or in support of business operations but not for transfer in accordance with this subsection are not exempt;
M. The service of transporting students to and from a school in vehicles;
N. The sale of labor and materials for a single-family residence in which a private individual resides full-time without leasing for compensation any portion of the residence to another person, including labor and materials for the improvement, renovation, or remodel of such a single-family residence, is exempt only if (1) the sale of such labor and materials is to the private individual who resides in the residence; (2) the private individual is acting as his or her own general contractor in constructing, improving, renovating, or remodeling the residence; and (3) the private individual displays at the time of sale an exemption certificate issued under BMC 4.16.050;
O. Purchases made with food coupons, food stamps, or other type of certificate issued under 7 USC Sections 2011 – 2025 (Food Stamp Act);
P. Ambulance, dental, hospital and medical services, including the sale of hearing aids, physical therapy services, prosthetic devices and medicinal preparations, when prescribed by a licensed health care provider. Ambulance, dental, hospital and medical services do not include services rendered by chiropodists, barbers, cosmeticians, masseurs or veterinarians;
Q. The sale of services of transporting passengers by river taxi, taxicab, bus, commercial airline, air charter, air taxi, hover craft or limousine is exempt. The lease of vehicle for hire permits are not exempt;
R. The sale to a senior citizen of food intended for consumption by the senior citizen, his or her spouse living in the same household, or the unemancipated minor children of either the senior citizen or his or her spouse, who live in the same household. The senior citizen shall display at the time of the sale a current and valid senior citizen exemption certificate issued to the person under BMC 4.16.050(C). For purposes of this subsection, “food” is defined in accordance with 7 USC Section 2012(g) (definition of “food” for purposes of the Food Stamp Act);
S. The payment of rent by a senior citizen on a single dwelling occupied as the senior citizen’s primary residence and permanent place of abode. The senior citizen shall provide proof at the time of payment of a current and valid senior citizen exemption certificate issued to the person under BMC 4.16.050(C);
T. Payment for telephone, electric, water and sewer utility services by a senior citizen on a single dwelling occupied as the senior citizen’s primary residence and permanent place of abode. The senior citizen shall provide proof at the time of payment of a current and valid senior citizen exemption certificate issued to the person under BMC 4.16.050(C);
U. The payment of rent by residents of Bethel community services and the payment of rent by Bethel community services clients who reside in Bethel at places other than the Bethel community services assisted living and supported living residences;
V. A sale of goods or services to any entity that, at the time of the sale, is legally constituted and legitimately acting in accordance with a duly authorized federal tax exempt status pursuant to IRS Regulations, Section 501(c), and the entity is a receiver of Alaska Revenue Sharing, and if the same goods or services are used exclusively in the fulfillment of activities within the federal tax exempt status;
W. A sale of goods is exempt if a credit union organized under state or federal law is the purchaser of the goods;
X. That portion of the selling price of real property in excess of twenty (20) percent of the first (1st) three hundred seventy-five thousand dollars ($375,000) of the selling price is exempt. This exemption does not apply to rentals of real property. This exemption applies to all sales of real property, including casual and isolated sales;
Y. The payment for No. 1 stove oil used as heating fuel by a senior citizen for a single dwelling occupied as the senior citizen’s primary residence and permanent place of abode. The senior citizen shall provide proof at the time of payment of a current and valid senior citizen exemption certificate issued to the person under BMC 4.16.050(C);
Z. Payment for water and sewer utility services by any and all persons or entities. [Ord. 09-14 § 4; corrected in 2/08 supplement; Ord. 03-12 § 2; Ord. 02-29 § 2; Ord. 02-22 § 2; Ord. 02-02 § 2; Ord. 01-28 § 6; Ord. 99-24 § 2; Ord. 99-09 § 2; Ord. 98-27 § 2.]
4.16.050 Exemption certificates – Applications.
A. Persons desiring an exemption certificate for exemptions under BMC 4.16.040(N), (R), (S), (T) or (U) must make written application for the certificate on a form supplied by the finance director, pay the application fee and meet the other requirements of this section. The finance director may at any time require proof that the original grounds for the exemption still exist and the claimant shall have the burden of establishing his or her qualifications for the exemption.
B. An exemption certificate for exemptions under BMC 4.16.040(N) may be issued only upon:
1. Submission of a complete application to the finance director;
2. Payment of the certificate fee of two hundred fifty dollars ($250);
3. Proof that the applicant owns or has a substantial ownership interest in the land upon which the home is to be built;
4. Proof that all building, zoning and other permits and approvals have been obtained and that the home will meet all requirements of the Bethel sewer and water codes.
A certificate issued under this subsection shall be numbered, identify the applicant property owner, be signed by the finance director, and shall expire on the last day of the twelfth (12th) month following the issuance of the permit. The expiration date shall be prominently displayed on the certificate.
C. 1. An exemption certificate or a renewal or replacement of an exemption certificate for a senior citizen exemption under BMC 4.16.040(R), (S) or (T) may be issued only upon the submission to the finance director of a complete application and the payment of any required fee. The certificate shall be in the form of a card which contains the name and residence address of the applicant, the applicant’s signature, a picture of the applicant, the expiration date of the certificate, and may contain codes and other information required by the finance director. The certificate shall expire two (2) years from the date of issuance. The finance director may establish and implement a system of staggered expiration dates. A certificate issued or renewed during the first (1st) two (2) years after the implementation of a system of staggered expiration dates may be given an expiration date that exceeds two (2) years as may be necessary to implement the system of staggered expiration dates. The finance director may issue temporary certificates under conditions determined by the finance director to be appropriate. The finance director shall conduct such investigation of the facts set out in an application as the director determines to be appropriate to verify the qualifications of the applicant for the certificate and shall issue the certificate within thirty (30) days of the submission of the application if the applicant is determined to be qualified.
2. A replacement certificate may be issued upon request, payment of any applicable replacement fee, proof of the loss of the original certificate and submission of a complete replacement certificate application.
3. If the applicant is physically or mentally disabled so that the applicant has unusual difficulty in shopping or other buying activities, the applicant may designate in the application up to two (2) persons who may act as proxy shoppers for the applicant. The names and signatures of the proxy shoppers shall be set out on the certificate.
4. a. Except for a proxy shopper whose name appears on the certificate, a person may not use in any way a certificate issued to another person.
b. A person to whom a certificate is issued may not give the certificate to another person for use by that other person unless the other person is a proxy shopper named on the certificate. Sales to a person acting as a proxy shopper are exempt only when the sale of the goods or services would be exempt if the sale had been made directly to the person to whom the certificate is issued.
5. To qualify for a certificate under this subsection, the applicant must be at least sixty-five (65) years of age; provided, any person who will be at least sixty (60) years of age on December 31, 1999, and was registered with the city for the senior citizen sales tax exemption that existed on March 31, 1999, or who applies for a certificate under this subsection C on or prior to December 31, 1999, shall be treated as if they were sixty-five (65) years of age and will be entitled to a certificate under this subsection if the person is sixty (60) years of age and meets all the other qualifications for a certificate except the age requirement.
6. The domicile of the applicant must be in the state.
D. An exemption certificate for persons applying for an exemption under BMC 4.16.040(U) for the payment of rent by a Bethel community service client who resides in Bethel at a place other than the Bethel community services assisted living and supported living residences may be issued only upon:
1. Submission of a complete application to the finance director;
2. Proof satisfactory to the finance director that the applicant is a Bethel community services client;
3. Address of residence along with name, address and phone number of property owner; and
4. Proof satisfactory to the finance director that the property owner has a current Bethel business license and a current state of Alaska business license.
A certificate issued under this subsection shall be numbered, identify the applicant, be signed by the finance director, and shall expire on the last day of the twenty-fourth (24th) month following the issuance of the certificate. The expiration date shall be prominently displayed on the certificate. The finance director shall conduct such investigation of the facts set out in an application as the director determines to be appropriate to verify the qualifications of the applicant for the certificate and shall issue the certificate within thirty (30) days of the submission of the application if the applicant is determined to be qualified. [Corrected in 2/08 supplement; amendment to Ord. 02-22 § 3A; Ord. 02-22 §§ 3, 3A; Ord. 01-28 § 7; Ord. 99-09 §§ 3, 4; Ord. 98-27 § 2.]
4.16.060 Tax added to sales price.
A. Seller shall add the sales tax to the selling price and, except as provided in subsection D of this section, shall collect the sales tax at the time of the sale. Such sales tax is a debt from the buyer or consumer to the seller until paid, and the same is recoverable at law in the same manner as other debts.
B. The tax levied under the provisions of this chapter is upon the buyer of goods, rentals or services, but the tax is remittable to the city by the seller regardless of whether the seller has collected the same from the buyer. It is the duty of each seller to collect from the buyer or consumer the full amount of the sales tax payable on each taxable sales transaction at the earliest of the time goods are sold, delivered or paid for, the time rent is due, or the time services are performed or paid for, provided the provisions of this and the preceding sentence do not apply to the extent they are inconsistent with the provisions of subsection D of this section. Every sale which is made within the city, unless explicitly exempted by this chapter or a subsequent ordinance, shall be presumed to be subject to the tax imposed hereunder in any action to enforce the provisions of this chapter.
C. In cases of payment of the sale price by consideration other than cash or an agreement to deferred payments under subsection D of this section, the seller shall collect the entire sales tax due on the noncash part of the sale at the time of the sale. The seller who fails to collect the sales tax due at the time of sale is immediately liable for the uncollected part of the sales tax due and shall segregate from the seller’s own funds the amount of such uncollected part and shall deposit such amount as the sales tax due in the Bethel sales tax trust fund or account required to be maintained for the holding of Bethel sales tax collected by the seller.
D. In cases of payment of all or a part of the sale price by installment or deferred payment, the seller may collect the sales tax as if the down payment and each installment or deferred payment were separate, individual sales, with the sales tax computed and paid on the entire principal and interest payment at the time of each payment. If the payment invoice for a deferred sales tax payment does not set out the amount of the sales tax due with the payment, the payment received shall be deemed to include the sales tax which shall be computed by multiplying the total principal and interest payment amount by 0.0566. Upon the sale or transfer by the seller of an account from which deferred sales tax payments are still due, the seller shall pay over to the city the amount of the sales tax still due from future payments on the account. [Corrected in 2/08 supplement; Ord. 08-01 § 3; Ord. 98-27 § 2.]
4.16.070 Bracket collection schedule.
A. Except as provided in subsections B and C of this section, the sales tax shall be stated separately on all invoices, receipts and other documents of the sale. The tax shall be charged in accordance with the following schedule:
|
Selling Price (inclusive) |
Amount of Sales Tax |
||
|
$ |
0.01 – 0.09 |
$ |
-0- tax |
|
0.10 – 0.16 |
0.01 |
||
|
0.17 – 0.33 |
0.02 |
||
|
0.34 – 0.50 |
0.03 |
||
|
0.51 – 0.66 |
0.04 |
||
|
0.67 – 0.83 |
0.05 |
||
|
0.84 – 1.09 |
0.06 |
||
|
amounts over $1.09 |
6% of selling price rounded up to the nearest whole cent for each fraction of one-half cent or more. |
B. When sales are made through devices such as service station fuel pumps that compute the amount due as the product is delivered, the seller may set the device to add the sales tax as the product sold is delivered. In doing so, the seller may set the device to add the tax in one-cent ($0.01) increments in accordance with the schedule in subsection A of this section or may set the device to add the tax as exactly six (6) percent of the price of the product as it is delivered. In either case where the tax is added as the product is delivered and the price of the sale, including the sales tax, is displayed on the device as the delivery is being made, the seller is not required to state the amount of the tax separately in an invoice or receipt, but shall place a notice on the device that the price shown includes the city sales tax.
C. When a coin- or bill-operated device dispenses goods, permits one (1) or more plays of a game or other entertainment, or permits a predetermined use of a device, equipment or place, the sales tax levied under this chapter shall be deemed to be included in the amount required to be deposited and shall be computed for purposes of collection, holding in trust, and paying over to the city by multiplying 0.0566 by the gross proceeds of each collection removed from the device by the seller. If the seller sells tokens or cards that are used to operate the devices, the gross proceeds shall be the sum of the cash removed from the devices plus the receipts from the sale of the tokens and cards. [Ord. 08-01 § 4; Ord. 98-27 § 2.]
4.16.080 Situs of taxable transaction.
A. A sale occurs in the city when:
1. The sale agreement is reached between a buyer and seller in the city;
2. Goods, property or rights sold by or through a seller or seller’s agent in the city are delivered to the buyer in the city;
3. Property within the city is leased or rented;
4. Services are sold and performed within the city;
5. Services are performed in the city, without regard to where the services were sold; or
6. Any other activities related to the sale of goods, services or rentals occur within the city with a sufficient connection and relationship to the city to permit the imposition of the tax under this chapter.
B. Whenever a seller with a Bethel outlet consummates a mail order sale sent directly to a Bethel buyer, the transaction shall be construed as occurring in the city for tax purposes unless the seller meets the burden of proving that the direct mail order sale is wholly disassociated from any assistance by its Bethel operations.
C. In cases where services or goods subject to a sales transaction outside the city are delivered both inside and outside the city, the tax shall be due on that portion of the services and goods delivered inside the city. [Ord. 98-27 § 2.]
4.16.090 Record of sale.
A. Except for a person who has been certified by the finance director as a seller who engages solely in tax exempt sales, each person making sales within the city shall provide to the buyer and shall retain a copy of, a receipt or invoice documenting the details of the sale.
B. Each receipt or invoice shall:
1. Be dated;
2. Be sequentially prenumbered, but may be sequentially machine-numbered if the number printed on the receipt or invoice is machine-generated;
3. Show the quantity, description and price of the goods sold, services rendered or sold or rentals made;
4. Show the amount of the sales tax on the sale; and
5. If any part of the sale is exempt, set out in detail on the receipt or invoice:
a. Each item and the amount of the sale that is tax exempt,
b. The reason for the exemption,
c. The name of the entity and the name of the person actually making the purchase, and
d. If the exemption may be given only upon the display of an exemption certificate or business license or upon the provision of a business license number, the seller shall record on the receipt or invoice the number and expiration date of the certificate or business license and the name of the person to whom issued. [Ord. 98-27 § 2.]
4.16.095 Receipts – Posting of signs.
A. The city finance department will create and distribute a poster designated by administration. The posters must be shown to the city council prior to being sent to businesses but do not require approval from council. The minimum requirements for the posters are as follows:
1. A request to patrons of the business to ask for a receipt; and
2. An explanation that the requirements of a receipt are date of sale, amount of sale, amount of tax collected and a sequence number of the receipt or invoice.
B. Businesses that are open to the public are required to post the signs.
C. Exempt businesses are those for which one hundred (100) percent of their business is nontaxable.
D. Failure to comply will result in a one hundred dollar ($100) fine per occurrence. [Ord. 09-28 § 2.]
4.16.100 Books, records and accounts.
A. Sellers shall keep complete, adequate and accurate business records from which the city may determine sales tax liabilities. Failure to maintain such records of business transactions is evidence intent to evade the tax and may result in penalties. A person who fails to comply with the requirements of this section may not challenge or attack in any court action or proceedings the correctness of any assessment of sales taxes based upon any period for which such books, records, and invoices have not been so maintained, preserved, or when requested, presented to the city.
B. Each seller shall prepare and preserve business records in a systematic manner conforming to accepted accounting methods and procedures. Such records include:
1. The books of account ordinarily maintained by a prudent business person. Records and accounting information stored on computers or microfilm must be provided to the city in readable form when requested by the city;
2. Documents of original entry such as original source documents, prenumbered sequential receipts, cash register tapes, sales journals, invoices, job orders, contracts, or other documents of original entry that support the entries in the books of accounts;
3. All schedules or working papers used to prepare gross and taxable sales results, including receipts or invoices showing exempt sales.
C. Records must show:
1. Gross receipts and amounts due from all taxable and exempt sales;
2. All exemptions or deductions from gross sales, including the customer name and Bethel business license or exemption certificate number and expiration date, date of transaction, receipt number, and amount exempted;
3. The total purchase price of all goods and other property purchased for sale, resale, consumption, or lease.
D. All records that pertain to transactions involving sales tax liability shall be kept for three (3) years following the end of the calendar year during which the transactions took place, unless the finance director grants written permission for earlier destruction. Records or copies of evidence presented as certification or proof of claimed sales tax exemption by the buyer are required when sales tax is not collected. If the seller is unable to provide the documentation required to validate the seller’s treatment of the sale as exempt, or if the city determines that a sale was subject to tax, and the seller failed to collect the tax, the seller becomes liable for the tax, plus interest, penalty, costs and charges due the city.
E. Amounts received with the return shall be applied in the following order:
1. Miscellaneous costs and charges and disallowed deductions or retentions;
2. Penalties due, beginning with the oldest penalty;
3. Interest due, beginning with the interest due on the oldest month; and
4. Taxes due, beginning with the taxes due from the oldest month. [Ord. 98-27 § 2.]
4.16.110 Returns and remittances.
A. For each separate business entity and location, a seller shall complete a city sales tax return, reporting accurately and completely all informa-
tion required on the form for all sales transactions occurring during the preceding month, quarter or year. Each sales tax return shall:
1. Set forth the gross receipts of the business for the reporting period: month, quarter or year;
2. Include all taxable and nontaxable transactions;
3. Itemize nontaxable transactions on the exemption form;
4. Include the amount of tax thereon; and
5. Include such other information as the finance director may require.
Each return shall be signed by a responsible individual who shall swear as to the completeness and accuracy of the information on the tax return.
B. Any seller who filed or should have filed a sales tax return for the reporting period shall file a return even though no tax may be due. This return shall show why no tax is allegedly due, and, if the business is sold, foreclosed upon or otherwise transferred to another person, the person to whom it was sold or transferred, the date it was sold or transferred and the address and telephone number of the person to whom it was sold or transferred. A seller who files a return for a reporting period when no tax is due is not required to file returns thereafter until it has one (1) or more taxable sales during a subsequent reporting period.
C. Each sales tax return for a reporting period must be received at the office of the finance director or, if mailed with sufficient postage, be postmarked by the U.S. Postal Service with a readable postmark date, on or before the last day of the month following the period for which the return is required to be submitted. In the event the due date is a Saturday, Sunday or state legal holiday, the sales tax return shall be received or postmarked on or before the next following business day. All taxes required to be collected, interest, penalty, costs and charges due shall be remitted with the sales tax return, whether or not the tax has been collected from the buyer.
D. Upon approval of the finance director, a seller that anticipates that it will have less than twenty-four thousand dollars ($24,000) in taxable sales during the current or coming calendar year may file its sales tax return and remittance of taxes on an annual basis for the current or coming year only if:
1. The seller had less than twenty-four thousand dollars ($24,000) in taxable sales during the preceding calendar year;
2. The seller executes an affidavit in a form satisfactory to the finance director stating that the seller anticipates that it will have less than twenty-four thousand dollars ($24,000) in taxable sales during the current or coming calendar year; and
3. The seller applies in advance for annual filing status on a form provided by the finance department and receives written approval from the finance director.
Returns and taxes filed and paid on an annual basis must be received or postmarked not later than the last day of the month following the calendar year for which the tax return is required to be submitted. Penalties for the late filing of an annual return and for the late remittance of taxes shall be double the rate applicable to monthly returns and interest shall accrue on late annual remittances from July first (1st) of the preceding year. If the seller was in business during the preceding year, the finance director may approve an annual filing for a seller at any time during the current calendar year, but such approval is prospective only and may be given only upon remittance by the seller of all taxes, penalties and interest due to the date of the approval.
E. Upon approval of the finance director, a seller that anticipates that it will have less than two hundred fifty thousand dollars ($250,000) in taxable sales during the current or coming calendar year may file its sales tax return and remittance of taxes on a quarterly basis for the current or coming year only if:
1. The seller had less than two hundred fifty thousand dollars ($250,000) in taxable sales during the preceding calendar year;
2. The seller executes an affidavit in a form satisfactory to the finance director stating that the seller anticipates that it will have more than twenty-four thousand dollars ($24,000) and less than two hundred fifty thousand dollars ($250,000) in taxable sales during the current or coming calendar years; and
3. The seller applies in advance for quarterly filing status on a form provided by the finance department and receives written approval from the finance director.
Returns and taxes filed and paid on a quarterly basis must be received or postmarked not later than the last day of the month following the quarter in which the tax return is required to be submitted. Penalties for the late filing of a quarterly return and for the late remittance of taxes shall be double the rate applicable to monthly returns and interest shall accrue on late remittances as if monthly filing was required.
F. If a complete return from a person reporting on a monthly, quarterly or annual basis is accompanied by the entire tax due and is received by the city within the time allowed, the person collecting the tax may deduct and retain up to one (1) percent of the tax due for the entire reporting period as compensation for its costs of administration of the tax; however, the amount deducted and retained may not exceed one hundred dollars ($100) for any reporting period. [Ord. 01-28 § 8; Ord. 98-27 § 2.]
4.16.120 Termination, sale or transfer of retail business.
A. A seller who sells, transfers or assigns a substantial portion of his retail business interest to another person shall make a final sales tax return within thirty (30) days after the date of such conveyance. At least ten (10) business days before any such sale is completed, the seller shall send to the finance director, by registered first-class mail, postage prepaid, a notice that the seller’s interest is to be conveyed to another person and shall include the name, address and telephone number of the person to whom the interest is to be conveyed. Following receipt of said notice, the city shall have sixty (60) days in which to perform a final sales tax audit and assess sales tax liability against the seller of the business. If the notice is not mailed at least ten (10) business days before the sale is completed, the city shall have twelve (12) months from the later of the completion of the sale or the city’s knowledge of the completion of the sale within which to begin a final sales tax audit and assess sales tax liability against the seller of the business. The city may also initiate an estimated assessment if the requirements for such an assessment exist.
B. A person acquiring any interest of a seller in a business required to collect the tax under this chapter assumes the liability of the seller for all taxes due the city, whether current or delinquent, whether known to the city or discovered later, and for all interest, penalties, costs and charges on such taxes. The finance director, upon authorization of the seller, may disclose the sales tax remittances, delinquencies and the status of the seller’s sales tax account to any person designated by the seller.
C. A seller who terminates his or her business without the benefit of a purchaser, successor or assign, shall make a final tax return and settlement of tax obligations within thirty (30) days after such termination. If a final return and settlement are not received within thirty (30) days of the termination, the seller shall pay a penalty of one hundred dollars ($100), plus an additional penalty of twenty-five dollars ($25) for each additional thirty- (30-) day period, or part of such a period, during which the final return and settlement have not been made, for a maximum of six (6) additional periods. A new or renewed business license may not be issued to a seller who has failed to make the return and settlement under this section until the return and settlement required have been made and the penalty imposed has been paid. [Corrected in 2/08 supplement; Ord. 98-27 § 2.]
4.16.130 Sales tax trust fund.
A. Upon collection by the seller or the segregation from the seller’s own funds of the tax levied and required to be collected under this chapter, title to the collected or segregated tax funds vests immediately in the city. The seller shall establish and maintain separate from all other funds and accounts of the seller a Bethel sales tax trust fund or account into which all sales tax collected or required to be collected shall be deposited or accounted for until paid over to the city.
B. Upon request of the finance director, a seller shall prove to the finance director that the seller has established and uses the trust fund or account required under this section.
C. A seller or any person with access to a trust fund or account required under this section or with access to funds required to be deposited in the trust fund who uses, diverts, or withdraws for any other use the tax funds collected and deposited or required to be deposited in the trust fund or account is guilty of a misdemeanor and may be punished upon conviction by a fine not to exceed one thousand dollars ($1,000) or by imprisonment not to exceed ninety (90) days or both fine and imprisonment for each such other use, diversion or withdrawal. [Ord. 98-27 § 2.]
4.16.140 Interest for delinquency.
Interest shall accrue on the principal amount of the delinquent tax and other costs and charges, but not on penalties, at the rate of fifteen (15) percent per annum from the date of the delinquency until paid. Interest shall be assessed and collected in the same manner as the sales tax is assessed and collected. The date of delinquency for the payment of costs and charges is the thirtieth (30th) day following the date of the notice of the amount of the cost or charge due. Interest due on delinquent taxes, costs or charges may not be waived or forgiven except to the extent the underlying principal amount has been determined not to have been due. [Ord. 98-27 § 2.]
4.16.150 Estimated tax.
A. On or after the fifth (5th) day of delinquency in the filing of the required sales tax return or the failure to remit all taxes, interest and penalty due, or upon a determination of a delinquency based upon an audit, the finance director shall assess against the delinquent seller a sales tax for the delinquent period or periods based on a reasonable estimate of the gross taxable sales computed from an audit or the tax returns submitted by the delinquent seller. If the finance director determines that information from prior tax returns is not adequate for computing a reasonable estimate of the gross taxable sales, other sources of information, including but not limited to information derived from similar businesses, may be used. Notice of the estimated assessment shall be provided to the seller by certified mail. Such assessment shall be due and owing retroactively from the first (1st) day of delinquency and shall be subject to the interest, penalty and other costs and charges as provided in this chapter.
B. The estimated assessment of sales tax and other amounts due and owing, as provided in subsection A of this section, shall be deemed to be admitted to be the amount due and owing to the city unless the finance director receives, within twenty (20) days of the date of the certified mailing of notice of the estimated assessment, an accurate and complete sales tax return for the delinquent periods together with full remittance of all taxes, interest, penalty, costs and other charges due, or the seller remits the amount due under protest under the provisions of BMC 4.16.190. [Ord. 98-27 § 2.]
4.16.160 Accelerated returns.
A seller who is required to file a return and remit taxes to the city, who fails for more than thirty (30) days to file a return or remit the taxes due or who has, within a twelve- (12-) month period, filed or paid taxes late on two (2) or more occasions may be required by the finance director to file and remit on a weekly basis; provided, the finance director shall provide to the seller a hearing after reasonable notice of the finance director’s intention to require more frequent filing and remittance. Unless otherwise required or authorized by the finance director, a seller required to file on a weekly basis shall file a complete return and full remittance for the weekly period not later than the fifth (5th) business day following the last day of the weekly period. The seller required to file and remit on a weekly basis who fails to file and remit the full amount due within two (2) business days of the date required for such filing and remittance or such a seller who files late two (2) or more times during a three- (3-) month period may be required by the finance director to file on a basis more frequent than weekly after written notice of intent and a hearing as provided in this section. The day by which more frequent filings are due shall be established by the finance director. [Ord. 98-27 § 2.]
4.16.170 Investigation and audits.
A. The finance director is not bound to accept a sales tax return as correct and may conduct an investigation to determine the correctness of a return. A person shall, upon request, furnish to the finance director every facility and assistance for the purpose of the investigation.
B. For the purpose of ascertaining the correctness of a return or the amount of taxes owed when a return has not been filed, the finance director may conduct investigations, hearings and audits and to that end may examine any relevant books, papers, statements, memoranda, records, accounts or other writings of any seller at any reasonable hour on the premises of the seller and may require the attendance and sworn testimony of any seller or any officer or employee of the seller at a hearing. Upon written demand by the finance director, the seller shall present for examination in the office of the finance director such books, papers, statements, memoranda, records, accounts and other written material as may be set out in the demand unless the finance director and the person upon whom the demand is made agree to presentation of such materials at a different place.
C. The finance director may issue subpoenas for the appearance of persons and for the production of records. The finance director may have enforcement of subpoenas in the Superior Court. [Ord. 98-27 § 2.]
4.16.180 Penalties.
A. A seller who fails to timely file a return as required under this chapter shall pay a penalty of three and one-half (3 1/2) percent of the taxes due. The penalty shall be imposed for each month or part of a month during which the delinquency of failure to file exists up to a maximum of seventeen and one-half (17 1/2) percent of the initial delinquency. The filing of an incomplete return shall be treated as the filing of no return.
B. A seller who fails to timely pay an amount shown on a return as required under this chapter shall pay a penalty of one and one-half (1 1/2) percent of the taxes not paid. The penalty shall be imposed for each month or part of a month during which the delinquency of failure to pay exists up to a maximum of seven and one-half (7 1/2) percent of the initial delinquency.
C. A person required to collect a tax under this chapter, who fails to provide a written receipt or invoice setting out the amount of the tax due on the transaction when the amount of the tax is required to be shown on the receipt or invoice, shall pay a penalty to the city equal to twice the amount of the tax due on the sale.
D. A person required to collect a tax under this chapter, who fails or refuses to produce records demanded or allow inspection at such reasonable time as requested or demanded by the finance director, shall pay to the city a penalty equal to three (3) times any deficiency found or estimated by the finance director to have occurred; provided, the minimum penalty is three hundred dollars ($300).
E. A person required to maintain records under the provisions of this chapter shall immediately notify the city of any fire, theft or other casualty that would prevent the person from complying with the provisions of this chapter. Such casualty may be a defense to a civil penalty levied under this section, but does not excuse the person from the liability for payment to the city of taxes required to be collected. The unexplained or accidental loss of records, except by fire, theft or casualty, does not excuse a person from the performance of any of the requirements under this chapter.
F. A penalty imposed under this chapter may not be waived or reduced except upon a clear showing of reasons beyond the control of the person upon whom the penalty is imposed or a similar strong justification and approval by the city manager of the waiver or reduction. [Ord. 06-17 § 2; Ord. 04-27 § 2; Ord. 98-27 § 2.]
4.16.190 Protest of tax and appeal by buyer.
A. The seller shall determine whether a sale is taxable under this chapter. If the seller fails to collect the tax due on a sale transaction because of an incorrect determination of taxability by the seller, except when the seller has been misled by the buyer, or fails for any other reason to collect the tax due on the sale, the seller becomes liable to the city for the tax in the same manner as if the tax had been collected.
B. If a buyer believes that a transaction is exempt or otherwise not subject to the tax imposed under this chapter, the buyer shall pay the tax to the seller under protest. A tax is paid under protest by stating to the seller that the tax is paid under protest and requesting the seller mark any receipts, invoices or other evidence of the sale to indicate that the tax is paid under protest. The buyer shall file with the finance director a statement of protest on a form provided to the buyer by the finance director. Failure to file a complete statement of protest with the financial director within ten (10) days of the date of the sale or to pay the tax at the time of the sale constitutes a waiver of the protest and of any other right of the buyer to challenge the tax in any other forum. The buyer shall clearly set out on the form the terms and conditions of the sale, the amount of the sale, the goods, rental or services involved, the location of the sale and all other information necessary to support the buyer’s claim that the tax does not apply.
C. The buyer shall file the completed form, including the copy of the receipt or invoice, with the finance director within ten (10) days of the date of the sale. The seller shall include a copy of the receipt protested with the seller’s sales tax return for the tax reporting period in which the protested tax was paid. The protested tax shall be paid over to the city with all other sales tax amounts due for the reported period.
D. The finance director shall issue a written ruling on the buyer’s protest within thirty (30) days of the timely filing by the buyer. The burden of proof is on the buyer. The finance director may make inquiry of any person who may have information of the facts relevant to the taxability of the protested tax and may seek the advice of the city attorney on any protest. The ruling will be in writing and must set forth the reason for the grant or denial of the protest. The ruling will be mailed to the buyer and the seller at the addresses given on the protest.
E. If a protest is granted, the finance director shall determine whether the tax protested has been received by the city from the seller. If the tax has been received, the finance director shall refund directly to the buyer the amount of the tax to be refunded. If the tax has not been received by the city, the finance director shall pay the refund to the buyer upon receipt of the sales tax from the seller.
F. In the event the protest is denied, the buyer may, within twenty (20) days of the date of mailing of the notice of denial, either request a finance committee review of the decision pursuant to BMC 4.16.220 or may file an appeal to the city manager pursuant to BMC 4.16.230. The request for finance committee review shall be filed with the finance director who shall immediately forward the request to the chair of the finance committee. An appeal to the city manager shall be filed with the finance director who shall immediately forward the appeal to the city manager. [Corrected in 2/08 supplement; Ord. 98-27 § 2.]
4.16.200 Protest and appeal by seller.
A. A seller may appeal a decision of the finance director if the seller believes that:
1. A transaction is exempt or otherwise not subject to the tax imposed under this chapter but has been informed by the city that such transaction is subject to the tax imposed under this chapter;
2. The tax, a penalty, interest or other charge imposed or demanded by the city is not owing;
3. An application for a refund of an excess payment was incorrectly denied;
4. An estimated tax filing by the finance director is incorrect or erroneous; or
5. Any other notice or demand of any amount claimed by the city to be due under this chapter is incorrect or erroneous, but only if such notice or demand is not the result of a prior appeal of the same matter and is not a subsequent notice or demand for which a timely appeal or protest of the earlier notice or demand was not timely filed.
B. The seller may appeal the determination of the tax, interest, penalty, charge or other claimed amount by the city by remitting the amount to the city under protest and filing with the finance director at the time of remittance a statement of protest setting out all relevant facts and clearly explaining why the transaction, or the amount, is exempt or not otherwise subject to the tax levied under this chapter or why the amount determined by the city is incorrect, erroneous, or otherwise not owing. The remittance and statement of protest must be received by the city not later than the twentieth (20th) day following the date the notice or determination is mailed to the seller. Failure to file a statement of protest and to remit the amount claimed by the city as owing within the time permitted under this subsection constitutes a waiver of the right to protest and to appeal the tax, disallowance, charge, interpretation or other city determination under this chapter and is a waiver of the right to appeal the determination to the city manager or to appeal or otherwise challenge the tax, disallowance, charge or interpretation or other determination in any judicial or other proceeding. If a seller shows that remittance under protest of the amount demanded would create an extreme hardship for the seller, the finance director may waive the remittance of part or all of the amount required to be paid; provided, the amount determined to be due by the finance director in the written decision of the appeal must be paid prior to filing with the city manager an appeal of the finance director’s decision. Upon the request of the seller and a determination by the finance director that the seller has not been late or deficient in the remittance of its sales taxes to the city for the immediately preceding three (3) years, exclusive of the remittances for the period under protest, and that he has a history of prompt remittance of all its other accounts with the city, the finance director may waive the remittance of part or all of the amount required to be paid; provided, the amount determined to be due by the finance director in the written decision of the appeal must be paid prior to filing with the city manager an appeal of the finance director’s decision.
C. The finance director shall issue a written ruling on a seller’s protest within thirty (30) days of receipt of the protest and remittance if timely filed. The seller has the burden of proof. The finance director shall permit or may require the seller to provide additional information relevant to the protest and appeal. The finance director may seek the advice of the city attorney on a seller protest and appeal. The ruling will be in writing and must set forth the reason for the grant or denial of the protest and appeal. The ruling will be sent to the seller at the address given in the protest.
D. If a protest is granted in part or in whole, the finance director shall refund to the seller the amount paid over to the city under protest that was in excess of the amount found owing. The seller shall immediately refund to each buyer from whom the tax was collected the amount of the tax improperly collected; if the seller did not collect the tax but has paid the tax to the city from its own account, the seller may retain the tax refunded.
E. In the event the protest is denied, the buyer may, within twenty (20) days of the date of mailing of the notice of denial, either request a finance committee review of the decision pursuant to BMC 4.16.220 or may file an appeal to the city manager pursuant to BMC 4.16.230. The request for finance committee review shall be filed with the finance director who shall immediately forward the request to the chair of the finance committee. An appeal to the city manager shall be filed with the finance director who shall immediately forward the appeal to the city manager. [Corrected in 2/08 supplement; Ord. 98-27 § 2.]
4.16.210 Refund of excess remittance.
A. A seller who, through a clerical or similar error, remits a tax under this chapter that exceeds the amount actually due may receive a refund of the excess remittance upon meeting the conditions set out in this section.
B. A seller who has made an excess tax remittance as set out in subsection A of this section shall be given a refund of the excess if the city receives written notice from the seller of the amount claimed as an excess remittance accompanied by satisfactory proof of the excess remittance in the form required by the finance director. The claim and proof must be received not later than the last day of the twenty-fourth (24th) month following the month for which the excess remittance was made, without regard to the month during which the remittance to the city was actually made.
C. Upon approval of a refund to a seller, the city may pay the refund to the seller or authorize the seller to take the refund as a credit against future monthly tax remittances; provided, the amount taken as a credit in any one (1) month may not exceed twenty (20) percent of the amount otherwise due for the month. No interest may be paid on the excess remittance.
D. In the event the protest is denied, the buyer may, within twenty (20) days of the date of mailing of the notice of denial, either request a finance committee review of the decision pursuant to BMC 4.16.220 or may file an appeal to the city manager pursuant to BMC 4.16.230. The request for finance committee review shall be filed with the finance director who shall immediately forward the request to the chair of the finance committee. An appeal to the city manager shall be filed with the finance director who shall immediately forward the appeal to the city manager.
E. A claim for a refund of an excess remittance to which this section applies is forever barred if notice and proof of the excess remittance are not given within the time required. [Corrected in 2/08 supplement; Ord. 05-19 § 2; Ord. 98-27 § 2.]
4.16.220 Review by finance committee.
A. Upon receipt of a request for finance committee review, the chair of the committee shall determine the earliest dates the finance director, the finance committee and the person requesting review can meet. The chair of the committee shall select a date, time and place for a meeting and shall notify the committee members, the person requesting review and the finance director of the meeting.
B. The finance director and the person requesting review shall provide to each other and to the committee chair all documents upon which each intends to rely in the review of the matter. Such documents should be provided within three (3) business days of the date notice of the meeting is mailed. The chair of the committee shall distribute to the committee members documents received in the matter.
C. The procedures at the meeting on the matter under review shall be informal. The person requesting review and the finance director shall each have a reasonable opportunity to explain their position. At the conclusion of the meeting on the matter, the committee shall determine what recommendation it will make to the finance director and shall set out its reasons for the recommendation. The finance committee recommendation is advisory only and is not appealable.
D. The recommendation and reasons shall be reduced to writing and mailed or delivered to the person requesting review, the finance director, and the city manager. The finance director shall give consideration to the arguments raised by the person requesting review, the recommendations of the committee, the scope of discretion of the finance director in the matter and other relevant factors. The finance director may consult with the city manager on the matter. The finance director shall promptly decide the position of the finance department and inform the person requesting review and the committee in writing of the final decision of the finance director. The finance director shall undertake such action as may be appropriate to implement the final decision.
E. A person who is dissatisfied with the final decision of the finance director may, within twenty (20) days of the date of mailing of the decision, file with the finance director an appeal of the decision to the city manager pursuant to BMC 4.16.230. The finance director shall immediately forward the appeal to the city manager. [Ord. 98-27 § 2.]
4.16.230 Appeal to city manager.
A. An appeal to the city manager of a finance director’s decision must be in writing and must set out with specificity the errors claimed to have been made by the finance director.
B. An appeal to the city manager of a finance director’s decision shall be scheduled for a hearing and be heard by the city manager or a hearing officer appointed by the city manager. The city manager or the hearing officer shall receive such relevant documents, information and testimony as the appellant and the finance director may desire to present at a hearing. The burden of proof is on the appellant. Unless the city manager specifically delegates to the hearing officer the authority to hear and decide the appeal, the hearing officer shall hear the appeal and provide to the city manager a proposed decision setting out findings, conclusions and orders which the city manager may accept, modify or reject and refer back to the hearing officer for reconsideration. If the hearing officer is specifically authorized to decide the appeal, the hearing officer’s decision is the final decision. If the city manager hears the appeal or if the city manager accepts and signs a hearing officer’s proposed decision, whether or not modified by the city manager, such decision is the city manager’s decision and is the final decision. A final decision shall be in writing and shall set out findings of fact, conclusions, and such orders as may be appropriate. A final decision may be appealed to the Superior Court pursuant to the rules of appellate procedure. A final decision shall state that it is a final decision and shall contain any notice of the limitations on and the right to appeal required by Rule 602(a)(2) of the Alaska Rules of Appellate Procedure or other applicable rule. A copy of the final decision shall be promptly mailed or delivered to the appellant and to the finance director. [Ord. 98-27 § 2.]
4.16.240 Rulings and regulations.
A. The finance director may promulgate and amend regulations and may prescribe the content and use of forms appropriate to the implementation of this chapter. Regulations promulgated by the finance director are effective on the date they are promulgated unless a different date is indicated in the regulations; provided, all regulations are subject to amendment and repeal at any time by the city council by ordinance. At least seven (7) calendar days prior to promulgation, a proposed regulation or amendment shall be submitted to the city attorney and the city manager for review and comment. Upon promulgating a regulation or any amendment to an existing regulation, the finance director shall submit the regulation or amendment to the city council at its next regular meeting.
B. If any person who is or may be required to remit or collect the tax under this chapter questions the application of this chapter to a transaction or other situation in which that person is involved or may become involved, the person may apply to the finance director for a ruling on the question. The finance director may rule on the question and may seek the advice of the city attorney on the question. Before a ruling of the finance director is effective or binding on the city, it must be signed by the city manager. Rulings having general applicability shall be considered by the finance director for promulgation as a regulation. [Ord. 01-28 § 9; Ord. 98-27 § 2.]
4.16.250 Time extensions.
For good cause shown, the finance director may grant an extension of the time required for the performance of any act under this chapter. The extension shall be subject to such terms and conditions as the finance director finds appropriate. An application for an extension must be filed in writing before the date required for performance. [Ord. 98-27 § 2.]
4.16.260 Disposition of tax information.
Information in the possession of the city which was obtained by the city in the administration or enforcement of the provisions of this chapter and which discloses the particulars of the business or affairs of a seller or other person from whom the information is obtained is not a matter of public record, but may be disclosed to other municipalities, the state or the United States for purposes of investigations and law enforcement. The information shall be kept confidential except when its production is required in an official investigation or an administrative or court proceeding. These restrictions do not prohibit the publication of general sales tax statistics and information or prohibit the publication of tax lists showing the names of sellers who are delinquent in the remittance of taxes, the amount of the delinquency plus penalties and interest owed by the delinquent sellers. Information otherwise protected by this section may be furnished on a reciprocal basis to other municipalities, agencies of the state or the United States concerned with the enforcement of tax laws, and may be furnished to any person authorized in writing by the seller to receive or view the information. [Ord. 01-28 § 10; Ord. 98-27 § 2.]
4.16.270 Civil enforcement remedies.
A. If sales tax is not paid when due, the city may enforce the remittance of the tax, interest, penalty, costs and charges by any method available in law, including but not limited to the lien, foreclosure and sale of real and personal property or a civil action against the delinquent taxpayer or responsible individual.
B. The city may institute a civil action against any person who violates a provision of this chapter. In addition to injunctive and compensatory relief, a civil penalty not to exceed one thousand dollars ($1,000) may be imposed for each violation. An action to enjoin a violation may be brought notwithstanding the availability of any other remedy. On application for injunctive relief and a finding of a violation or a threatened violation, the Superior Court shall grant the injunction. Each day that a violation of this chapter continues constitutes a separate violation. [Ord. 98-27 § 2.]
4.16.280 Liens.
A. The tax, interest, penalty and other costs due and owing the city by a seller under this chapter constitute a lien in favor of the city upon the assets and property of all persons liable for the remittance of the tax, interest, penalty and other costs.
B. The lien imposed by this section arises and attaches at the time that remittance becomes delinquent and continues until the entire amount due has been paid.
C. If delinquent sales taxes, interest, penalties and other costs are not paid within ten (10) days from the mailing of notice and demand for remittance thereof, a notice of lien may be recorded in the office of the district recorder in any recording district where the person liable has assets or property, and upon recordation a lien arising under this section has priority over any other liens except those for special assessments or those granted priority by state or federal law.
D. An action to foreclose the lien created by this section shall be commenced and pursued in the manner provided for the foreclosure of liens in AS 09.45.170 through 09.45.220.
E. The remedy provided in this section is not exclusive and shall be in addition to all other remedies available to the city to collect the sales taxes, interest, penalty and costs due under this chapter.
F. The failure to record a lien does not constitute as a waiver or abrogation of any priorities, rights or interests of the city at law or in equity.
G. Fees for the administrative costs of filing notices of liens and releasing of liens shall be:
1. Filing of notices of lien: Twenty-five dollars ($25), plus recorder’s office filing fee;
2. Release of liens: Twenty-five dollars ($25), plus recorder’s office filing fee;
3. Upon full satisfaction of remittance of all taxes, interest and costs, including the administrative costs for the filing and release of the liens, due and owing to the city, the finance director shall file a certificate discharging the lien. [Ord. 98-27 § 2.]
4.16.290 Liability of responsible individuals.
Each responsible individual as defined under BMC 4.16.010 is liable to the city for the remittance of sales taxes that are delinquent and which were collected or required to be collected or required to be paid over to the city while such individual was a responsible individual with respect to such taxes. Such individual is liable to the city for penalties, interest on the delinquent taxes, costs and other charges accrued to the date of remittance. Upon written demand for remittance of delinquent taxes, penalty, interest, costs and charges sent by registered mail to a responsible individual, the responsible individual shall remit over to the city the amount of the delinquent taxes, interest, penalty, costs and charges due within twenty (20) days of the date of mailing of the written demand or file a written appeal to the finance director setting out with specificity the amounts for which he or she is not liable and the reasons there is no liability for such amounts. The appeal shall be filed as a protest under BMC 4.16.190 except that remittance under protest is not required to be made as a condition of filing the appeal to the finance director; however, if the protest decision of the finance director is appealed to the city manager, the amount set out as due in the finance director’s decision must be paid with the filing of the appeal to the city manager. If the responsible individual upon whom demand for remittance has been made fails to file an appeal or to remit the taxes, penalty, interest, costs and charges due within twenty (20) days of the date of mailing of the demand, the amount due is deemed admitted to be due from the responsible individual and may not thereafter be made the subject of an appeal or otherwise challenged in any judicial proceeding. The amount due may be collected in a civil action against the responsible individual. [Ord. 98-27 § 2.]
4.16.300 Seller education.
Repealed by Ord. 09-04. [Corrected in 2/08 supplement; Ord. 98-27 § 2.]
4.16.310 Tax evasion.
A. A person commits the misdemeanor crime of tax evasion if the person:
1. Fails to file a statement or return required by this chapter;
2. Makes a false statement or affidavit of occurrence, existence, amount, location, or value of a sales transaction or of property or service subject to tax under this chapter;
3. Uses a tax exemption certificate or claims an exemption when an exemption is not applicable;
4. Remits or rebates to a buyer or consumer, whether directly or indirectly, by any means, all or any part of the tax levied hereunder;
5. Makes in any form of advertising, whether in writing, verbally or otherwise, any statement which implies that the person is absorbing the tax, paying the tax for the buyer or consumer or user by an adjustment of prices or by any other means; or is guilty of a misdemeanor; provided, however, a seller may advertise that the purchase price includes the sales tax when authorized under BMC 4.16.070(B) or (C) to include the tax in the sale price;
6. Falsifies or changes the content of a record of any nature required to be kept under this chapter so as to misrepresent the facts or information contained therein;
7. Submits to the city or the finance director any information or record that has been falsified or changed to create a misrepresentation;
8. Fails, neglects or refuses to comply with any provision of this chapter; or
9. Refuses as a buyer to pay to the seller the tax due under this chapter.
B. Each day upon which a violation of this chapter continues is a separate violation.
C. Upon the conviction of tax evasion under this chapter, the court may impose a fine of not more than three hundred dollars ($300) for each violation unless a greater punishment is authorized for the violation of a particular provision of this chapter. [Corrected in 2/08 supplement; Ord. 98-27 § 2.]
4.16.320 Use tax.
A. There is levied and shall be collected a tax on the storage, use, or consumption of alcoholic beverages in the city. The tax shall be at the same rate as the sales tax levied under this chapter, but there shall be deducted from the tax levied under this section an amount equal to any sales tax paid by the buyer that was levied and collected on the sale of the alcoholic beverage.
B. The buyer shall pay the tax. A person outside the city who receives an order for alcoholic beverages to be shipped by the seller or seller’s agent or employee to an address or person in the city shall collect the tax and remit the tax collected or required to be collected to the city in the same manner as required for sales taxes levied by the city. Such seller shall be liable for the remittance of the use tax in the same manner as a person who is required to collect the city sales tax on the sale of other goods. The buyer shall be liable to the city for all use taxes not collected by a seller.
C. The provisions of the chapter applicable to sales tax shall apply to the use tax levied under this section, including, but not limited to, provisions regarding computation, collection, holding, reporting, record keeping, remittance to the city, interest, penalties, enforcement, remedies, assessment of delinquent taxes, liability, audit, appeal and refund. When the sales tax provisions are applied to the use tax, the phrase “sales tax” shall be read as “use tax” where appropriate. [Corrected in 2/08 supplement; Ord. 98-27 § 2.]