Chapter 3.32
CONTROLLED SUBSTANCE EXCISE TAX

Sections:

3.32.010    Purpose.

3.32.020    Definitions.

3.32.030    Excise levy and collection.

3.32.040    Presumptions and burden of proof.

3.32.050    Exemptions.

3.32.060    Violation—Penalty.

3.32.010 Purpose.

The excise on the manufacture, importation, distribution or sale of controlled substances as levied by this chapter is for the purpose of offsetting the cost of law enforcement in the investigation, apprehension, prosecution and incarceration of those who manufacture, import, distribute or sell controlled substances in the city. The excise levied herein shall not be construed as a condonation or acceptance of the manufacture, importation, distribution or sale of controlled substances in the city or elsewhere; rather, this excise is imposed in the recognition that such activity exists and that it imposes substantial economic and social costs upon the citizens of the city. (Prior code § 25-155)

3.32.020 Definitions.

For the purposes of this chapter, whenever any of the following words, terms or definitions are used, they shall have the meaning ascribed to them in this section:

“Controlled substance” has the meaning ascribed to it in Alaska Statutes Section 11.71.900.

“Deliver” or “delivery” has the meaning ascribed to them in Alaska Statutes Section 11.71.900.

“Dispense” or “dispenser” has the meaning ascribed to them in Alaska Statutes Section 11.71.900.

“Distribute” or “distribution” has the meaning ascribed to “distribute” in Alaska Statutes Section 11.71.900.

“Import” or “importation” means to send into, bring into, or receive within the city a controlled substance from a source or person outside the city.

“Manufacture” has the meaning ascribed to it in Alaska Statutes Section 11.71.900.

“Practitioner” has the meaning ascribed to it in Alaska Statutes Section 11.71.900.

“Sale” has the meaning ascribed to it in Alaska Statutes Section 11.71.900. (Prior code § 25-160)

3.32.030 Excise levy and collection.

A.    There is levied and imposed upon the manufacture, importation, distribution and sale in the city of a controlled substance an excise equal to fifty percent of the market value of the controlled substance.

B.    The liability for payment of the excise shall be born jointly and severally by the manufacture, importer, distributor or seller of the controlled substance.

C.    The excise levied by this chapter shall be due and owing to the city at the finance director’s office within five days of the first manufacture, importation, distribution or sale of any controlled substance in the city.

D.    Accurate records of all transactions relating to the manufacture, importation, distribution or sale of any controlled substance shall be maintained by every person liable for payment of the excise levied under this chapter. The person liable for payment of the excise shall report all such transactions, and the value of the controlled substances, to the city no later than the time payment of the excise is due under subsection C of this section. (Amended during 12-08 supplement; prior code § 25-156)

3.32.040 Presumptions and burden of proof.

A.    In the event the market value of the controlled substance is not readily and accurately ascertainable from the records required to be maintained under Section 3.32.030, the finance director or his designee shall determine the market value from all available evidence, which may include, but shall not be limited to, the street value of the controlled substance at the time of manufacture, importation, distribution or sale. The determination of market value by the finance director or his designee shall create a rebuttable presumption that the valuation is correct and accurate. In any civil proceeding instituted by the city to collect the excise levied herein, this presumption may be rebutted only by clear and convincing evidence to the contrary.

B.    In any dispute concerning whether the excise due under this article has been paid with respect to any particular controlled substance, the burden of proving by a preponderance of the evidence the payment of the excise shall be upon the person liable for the payment of the excise. (Amended during 12-08 supplement; prior code § 25-157)

3.32.050 Exemptions.

Practitioners and dispensers shall be exempt from the excise imposed by this chapter while engaging lawfully in professional practice or research in the city. (Prior code § 25-159)

3.32.060 Violation—Penalty.

A.    A person liable for the excise who fails to transmit to the city the excise due under this chapter within five days of the first manufacture, distribution, importation or sale shall incur a civil penalty of ten percent of the excise due and owing per month or fraction thereof from the time the excise should have been paid and the date it was paid, but not to exceed one hundred percent of the excise due.

B.    A person who violates any of the provisions of this chapter shall be guilty of a criminal violation and shall be fined not more than one thousand dollars or imprisoned not more than ninety days, or both. A separate offense shall be deemed committed upon each day of continuing violation. (Prior code § 25-158)