Chapter 5.16
SALES TAX*
Sections:
5.16.010 Statutory authority.
5.16.020 Definitions.
5.16.025 Interpretation.
5.16.030 Levy of tax.
5.16.035 Maximum tax per transaction.
5.16.040 Transaction in the city.
5.16.045 Rules applicable to particular businesses or occupations.
5.16.050 Exemptions.
5.16.080 Certificate of exemption.
5.16.090 Determination whether transaction is exempt.
5.16.100 Collection of sales tax—Addition and separate statement; Exceptions.
5.16.110 Title to collected sales tax.
5.16.120 Tax returns—Contents—Penalty for delinquency.
5.16.125 Application of sales tax payments.
5.16.130 Duties upon cessation or transfer of business.
5.16.140 Amended returns.
5.16.150 Tax return—Extension of time.
5.16.160 Use of information on tax returns.
5.16.170 Tax records—Additional information from seller—Audits.
5.16.180 Estimated tax.
5.16.190 Violations—Remedies.
5.16.200 Regulations.
5.16.210 Property tax limit—Use of sales tax.
* Prior code history: prior code §§ 6.50.010—6.50.230.
5.16.010 Statutory authority.
This chapter is adopted pursuant to Alaska Statutes. (Ord. 01-38(SUB) § 2 (part), 2001)
5.16.020 Definitions.
When used in this chapter, the following words and phrases shall have the meanings set forth in this section:
“Buyer” means a person who acquires property, or the right to use or occupy property, or who receives a service, for consideration.
“Delivery” means that goods have been placed within the buyer’s control.
“Gaming property” means a right to participate in a game of chance regulated under Alaska Statutes Chapter 5.15, including without limitation a right to participate that is represented by a pull-tab, bingo card, or raffle or lottery ticket.
“Price” means the amount of money, and the fair market value of consideration other than money, that the buyer gives to the seller in exchange for property, the right to use or occupy property, or the rendering of services.
“Rental” means any transfer of the right to use or occupy property for consideration.
“Sale” means any transfer of property for consideration.
“Sales tax” means the tax levied by this chapter.
“Seller” means a person who, as principal or agent, transfers property, or the right to use or occupy property, or provides a service, for consideration.
“Service” means any application of labor, skill or knowledge to produce value in exchange for consideration, and may include the provision of property or the right to use or occupy property, but does not include services rendered to an employer by an employee.
“Transaction” means any transfer of property, or the right to use or occupy property, or the rendering of a service, for consideration. (Ord. 08-29 § 7, 2008; Ord. 04-12 § 2, 2004; Ord. 01-38(SUB) § 2 (part), 2001)
5.16.025 Interpretation.
A. The tax levied by this chapter applies to all sales, rentals and services except those that this chapter expressly exempts from the tax.
B. Exemptions from the tax levied by this chapter are to be construed narrowly. (Ord. 01-38(SUB) § 2 (part), 2001)
5.16.030 Levy of tax.
A. Subject to the remainder of this chapter, a tax of two and one-half percent of the price is levied on all sales, rentals and services made in the city through the earlier of:
1. June 30, 2012; and
2. The date when all bonds issued under Ordinance 01-55(AM) have been retired; and
3. A tax of two percent of the price is levied on all sales, rentals and services made in the city thereafter. (Ord. 01-55(AM) § 4, 2001: Ord. 01-38(SUB) § 2 (part), 2001)
5.16.035 Maximum tax per transaction.
Only the first five hundred dollars ($500.00) of the price in each transaction shall be subject to sales tax; provided, that a single payment for the sale or rental of property, or the rendering of a service, over a period exceeding one month shall be allocated pro rata to each one-month period or part thereof during the term of the transaction, and the first five hundred dollars ($500.00) of the price allocated to each such period shall be subject to sales tax. (Ord. 01-38(SUB) § 2 (part), 2001)
5.16.040 Transaction in the city.
A. The following rules determine whether a transaction is made within the city:
1. A sale or rental is made within the city if delivery occurs in the city, and the seller either:
a. Maintains a place of business, or an agent or employee, in the city; or
b. Regularly or repeatedly promotes sales or rentals in the city by means such as advertising, promotional events or solicitation of sales.
2. A service is made within the city if:
a. All or a substantial part of the service is rendered in the city; or
b. The seller maintains a place of business, or an agent or employee, in the city, the service benefits a person or property in the city, and either the order for the service is received or solicited in the city, or payment for the service is received in the city.
3. A rental of real property is made in the city if the real property is located in the city.
4. A service involving the construction, repair, renovation, improvement, sale or rental of real property is made in the city if the real property is located in the city. (Ord. 01-38(SUB) § 2 (part), 2001)
5.16.045 Rules applicable to particular businesses or occupations.
A. Real Estate Sales Commissions.
1. Commissions on sales of real property located in the city are subject to sales tax, regardless of the location of the person to whom the commission is payable.
2. Commissions on sales of real property payable to a person who maintains an office in the city are subject to sales tax, regardless of the location of the real property.
B. Sales of Gaming Property. An amount equal to the gross receipts of the seller from sales of gaming property, less the cost of prizes awarded on each series, set of games, or contest for which gaming property has been sold, shall be subject to sales tax.
C. Sales from Coin-Operated Machines. An amount equal to the gross receipts from each coin-operated machine that the seller operates in the city, shall be subject to sales tax. (Ord. 07-17 § 2, 2007: Ord. 01-55(AM) § 5, 2001; Ord. 01-38(SUB) § 2 (part), 2001)
5.16.050 Exemptions.
A. The following transactions are exempt from sales tax:
1. Sales of real property, and interests in real property. Whether a transaction is a sale of real property is determined as of the time of the transaction, and without reference to whether what is sold later will be incorporated into real property.
2. Casual and isolated sales, rentals or services, not made in the ordinary course of business.
3. Sales of securities, insurance and bonds of guaranty and fidelity.
4. The following fees charged by banks, savings and loan associations, credit unions and investment banks:
a. Fees associated with deposit accounts, including service fees, monthly account fees, NSF fees, and attachment fees.
b. Fees for the purchase of bank checks, money orders, travelers checks, foreign currency and similar products for payments.
c. Fees for, or commissions on, the sale, exchange or transfer of currency, stocks, bonds and other securities.
d. Fees for the use of automatic teller machines and for transactions made through automatic teller machines, notary fees and overdraft protection fees.
5. Contracts to transport elementary or secondary school students to and from school.
6. Sales of food in lunchrooms or cafeterias in elementary, secondary or post-secondary schools that are operated primarily for the convenience of school students and faculty, and not operated for profit.
7. Sales, rentals or services which the city is prohibited from taxing by the constitution or statutes of the United States or the state of Alaska.
8. Sales of newspapers and other periodicals that are made directly by carriers to consumers or users.
9. Sales, rentals and services to the United States, the state of Alaska, and any of their agencies, instrumentalities, or political subdivisions.
10. Dues or fees to clubs, labor unions or fraternal organizations.
11. Sales of admission to school entertainments, school athletic events, and events conducted for the benefit of charitable or community organizations. This exemption does not apply to sales of gaming property.
12. Sales of air, train, boat, cruise line or bus tour transportation, car rentals, accommodations, or admission to entertainment events, where the service is provided outside the city, and fees or commissions related to such sales.
13. Sales related to orbital space facilities, space propulsion systems, space vehicles, satellites or stations, to the extent of the exemption required by AS 29.45.650(h).
14. Sales of property purchased with food coupons, food stamps, or other certificates issued under 7 U.S.C. 2011-2025 (Food Stamp Act) or food instruments, food vouchers, or other certificates issued under 42 U.S.C. 1786 (Special Supplemental Food Program for Women, Infants and Children).
15. Residential rentals for a term of thirty (30) or more consecutive days.
16. Child day care, pre-elementary school and baby-sitting services.
17. Sales of cemetery plots, and sales of caskets, funeral- and burial-related goods and services by a funeral home.
18. Sales of property and services required in the course of mental or physical treatment by a health care provider licensed by the state of Alaska, and sales of property and services pursuant to a prescription or written order from such a person.
19. Sales and rentals of hearing aids, crutches, wheelchairs and personal apparatus specifically manufactured for a patient.
B. The following transactions are exempt from sales tax; provided, that the buyer presents to the seller at the time of the sale transaction a valid certificate of exemption applicable to the transaction, issued to the buyer under Section 5.16.080:
1. Sales to a dealer in the property sold, for the purpose of resale by the dealer.
2. Sales of raw material to a manufacturer, which raw material becomes an ingredient or component part of a manufactured product or a container thereof, or is consumed in the manufacturing process.
3. Sales of tangible personal property that either will be consumed in the course of construction or become part of real property, and rentals of equipment, to an owner of real property for use in the original construction of, or renovations to, improvements to the real property. This exemption does not apply to sales of tangible personal property, or rentals of equipment, that are to be used in repairing or maintaining real property.
4. Sales of tangible personal property that either will be consumed in the course of construction or become part of real property, and rentals of equipment, to a person licensed as a contractor under Chapter 8.18 of the Alaska Statutes for use in the original construction of, or renovations to, improvements to real property. This exemption does not apply to sales of tangible personal property, or rentals of equipment, that are to be used in repairing or maintaining real property.
5. Sales, rentals and services to a person that the Internal Revenue Service recognizes as an organization described in Section 501(c)(3) or 501(c)(4) of the Internal Revenue Code; provided, that the sale, rental or service is not for use in an “unrelated trade or business” of the person, as that term is defined in the Internal Revenue Code.
6. Sales of food supplies to food service establishments for incorporation into food products to be sold to the public.
7. Sale of food supplies to hospitals, institutions housing six or more residents, recreational camps and schools.
C. The following transactions are exempt from sales tax; provided, that the seller has at the time of the transaction a valid certificate of exemption applicable to the sales transaction, issued to the seller under Section 5.16.080:
1. Sales, rentals and services by a person that the Internal Revenue Service recognizes as an organization described in Section 501(c)(3) or 501(c)(4) of the Internal Revenue Code; provided, that the sale, rental or service is not part of an “unrelated trade or business” of the person, as that term is defined in the Internal Revenue Code. (Ord. 07-17 § 3, 2007: Ord. 01-38(SUB) § 2 (part), 2001)
5.16.080 Certificate of exemption.
A. A person shall apply to the finance director for a certificate of exemption that is required for an exemption from sales tax under Section 5.16.050(B) or (C) on a form approved by the finance director. The application shall be accompanied by any applicable fee that is required under subsection B of this section. The finance director may require additional information of the applicant as necessary to determine whether the application should be granted. A certificate of exemption is issued for a calendar year, and expires on December 31st of the calendar year for which it was issued.
B. Except as provided in this subsection, there shall be no charge for a certificate of exemption. The applicant shall pay the city:
1. For a certificate of exemption issued under Section 5.16.050(B)(3) for the 2007 calendar year, twelve dollars and fifty cents ($12.50).
2. For a certificate of exemption issued under Section 5.16.050(B)(3) for the 2008 calendar year or any subsequent calendar year, thirty dollars ($30.00).
3. For a certificate of exemption issued under Section 5.16.050(B)(4) for the 2008 calendar year or any subsequent calendar year, one hundred fifty dollars ($150.00).
C. The finance director may revoke a certificate of exemption after notice to the holder of the certificate and a hearing, if the finance director finds that the holder of the certificate:
1. Gave false information when applying for the certificate of exemption;
2. Used the certificate of exemption in a transaction that was not exempt from sales tax under the exemption in Section 5.16.050 for which the certificate was issued;
3. Permitted the use of the certificate of exemption by a person other than an authorized agent or employee of the holder of the certificate; or
4. Ceases to be entitled to exemption from sales tax under the exemption in Section 5.16.050 for which the certificate was issued. (Ord. 07-17 § 4, 2007: Ord. 01-38(SUB) § 2 (part), 2001)
5.16.090 Determination whether transaction is exempt.
A seller shall require the buyer to pay sales tax on each transaction that is not exempt from sales tax under this chapter. If a buyer pays sales tax on a transaction that the buyer believes to be exempt, the buyer may request that the city determine whether the transaction is exempt by completing a certificate of protest in a form provided by the city. The certificate shall show the names and addresses of the seller and the buyer, the basis for the claim of exemption, and such other information as may be prescribed by the city. A seller shall keep a supply of certificates of protest and provide one to a buyer upon request. After completing the certificate of protest, the buyer shall give it to the seller, who shall deliver it to the city as promptly as possible, but in no event later than thirty (30) days after its receipt from the buyer. The finance director will determine whether a transaction is exempt from sales tax based on the information in the certificate of protest, and notify the buyer in writing of the determination, within thirty (30) days after receipt of the certificate. If the finance director determines that the transaction is exempt, the finance director shall remit a refund with the notice. (Ord. 01-38(SUB) § 2 (part), 2001)
5.16.100 Collection of sales tax—Addition and separate statement; Exceptions.
A. The buyer shall pay sales tax to the seller at the time of payment for a sale, rental or service subject to sales tax. The seller shall collect sales tax from the buyer at the time of payment for a sale, rental or service subject to sales tax. The seller is responsible for remitting sales tax on all nonexempt sales to the city, regardless of whether the seller collects the sales tax from the buyer.
B. Except as provided in subsection C or D of this section:
1. The seller shall add the sales tax to the price or charge for the sale, rental or service, showing the tax as a separate and distinct item on any receipt, invoice, statement of account, or other record of the transaction. The sales tax on more than one separately priced item may be shown as a total tax on the aggregate price of all items sold or rented, or services rendered, in a single transaction.
2. The amount of sales tax to be added to the price of a sale, rental or service shall be determined in accordance with the following schedule:
|
Price of sale, rental or service |
Tax |
|
Under $0.20 |
None |
|
$0.20 through $0.59 |
$.01 |
|
$0.60 through $0.99 |
$.02 |
|
$1.00 through $1.39 |
$.03 |
|
$1.40 through $1.79 |
$.04 |
|
$1.80 through $2.19 |
$.05 |
|
$2.20 through $2.59 |
$.06 |
|
$2.60 through $2.99 |
$.07 |
|
$3.00 through $3.39 |
$.08 |
|
$3.40 through $3.79 |
$.09 |
|
$3.80 through $4.19 |
$.10 |
|
Over $4.19, continue on same scale up to five hundred dollars ($500.00). |
|
3. A seller may not assume, fail to add to the price or charge for a sale, rental or service, or refund to the buyer all or part of the sales tax, or advertise or represent to any person that the seller will do so.
C. Sales tax on sales of gaming property and sales from coin-operated machines is not added to the sales price and collected with each transaction, but is computed and paid as provided in Section 5.16.045.
D. When it is not feasible for the seller to show the sales tax on each transaction as a separate and distinct item, the seller may elect to remit to the city an amount equal to the seller’s gross receipts divided by 1.025 and multiplied by 0.025 in lieu of stating sales tax separately and adding it to the sales price. A seller makes this election for a calendar year by so indicating on its application for a city business license. A seller who has made this election shall include in each sign that displays prices to its customers a notice, in type no smaller than the type in which prices are displayed, stating, “All prices include 2.5% City of Wasilla sales tax.” (Ord. 07-16 § 2, 2007: Ord. 02-49 § 2, 2002; Ord. 01-38(SUB) § 2 (part), 2001)
5.16.110 Title to collected sales tax.
Title to sales tax vests in the city upon collection by the seller. The seller holds collected sales tax in trust for the city, and is accountable to the city therefor. (Ord. 01-38(SUB) § 2 (part), 2001)
5.16.120 Tax returns—Contents—Penalty for delinquency.
A. A seller shall prepare a sales tax return for each calendar month. The sales tax return shall state the total amount of the seller’s sales, rentals and services; the amounts of the seller’s exempt and taxable sales, rentals and services; and the amount of sales tax that is due from the seller. The seller shall submit on or with the return such additional information as the city may require to determine the amount of sales tax due for the month. The seller shall prepare the return and remit sales tax to the city on the same basis, cash or accrual, that the seller uses in preparing its federal income tax return. The seller shall sign the return, and transmit the return, with the amount of sales tax that it shows to be due, to the city.
B. A seller that filed or should have filed a sales tax return for the prior month shall file a return for the current month even though no tax may be due. The return shall show why no tax is due.
C. A sales tax return, and the related remittance of sales tax, is due, and must be received by the city, not later than five p.m. on the last business day of the month immediately following the month for which the return was prepared. The failure of the U.S. Postal Service or any private delivery service to make timely delivery of a sales tax return or the related remittance of sales tax shall not excuse an untimely filing or remittance.
D. Sales tax that is not received on or before the time when due is delinquent. Delinquent sales tax bears interest at the rate of fifteen (15) percent per annum until paid. In addition, delinquent sales tax shall be subject to a late payment penalty equal to five percent of the amount of the delinquent sales tax multiplied by the number of calendar months (or portions thereof) that elapse until the delinquent sales tax, interest and penalty are paid in full; provided, that the amount of penalty shall not exceed twenty-five (25) percent of the amount of the delinquent sales tax. The penalty does not bear interest.
E. A seller who timely files a correctly completed sales tax return, and the related remittance of sales tax, may retain two percent of the amount of the sales tax to be remitted, up to a maximum retainage of one hundred dollars ($100.00).
F. The finance director may require a seller that fails to submit a sales tax return or remit taxes when due to submit tax returns and remit taxes more frequently than monthly. (Ord. 05-20 § 2, 2005; Ord. 02-47 § 2, 2002; Ord. 01-38(SUB) § 2 (part), 2001)
5.16.125 Application of sales tax payments.
A. Except as this section provides otherwise, payments on sales tax accounts shall be applied to the amount due for each calendar month, in chronological order, and within the amount due for each calendar month first to accrued penalty, second to accrued interest and then to sales tax payments owed by the seller.
B. Payments on sales tax accounts submitted with sales tax returns shall be applied to the most current return period, first to accrued penalty, second to accrued interest and then to sales tax payable under the return. Any remaining moneys shall be applied as provided in subsection A of this section.
C. Amounts of delinquent sales tax, interest or penalty that have been reduced to judgment, are the subject of a confession of judgment, or are the subject of a written payment agreement between the city and the seller are payable as provided in the judgment, confession of judgment or payment agreement, respectively, and, except as provided otherwise in the judgment, confession of judgment or payment agreement, thereafter cease to be subject to the further accrual of interest or penalty under this chapter. (Ord. 07-10 § 2, 2007; Ord. 05-20 § 3, 2005)
5.16.130 Duties upon cessation or transfer of business.
A. A seller that ceases to engage in business in the city without a transfer of the business shall file with the city a final sales tax return, and remit any sales tax due, for the period ending on the date that the seller ceases to engage in business in the city, not later than fifteen (15) days after that date.
B. A seller that transfers its business in the city shall provide the transferee with written notice of the transferee’s obligations under subsection C of this section not less than fifteen (15) days before the effective date of the transfer, but neither the seller’s failure to give the notice nor the transferee’s failure to receive the notice shall relieve the transferee of any such obligation. The seller shall file with the city a final sales tax return, and remit any sales tax due, for the period ending on the effective date of the transfer, not later than fifteen (15) days after the effective date, and provide a copy of the return to the transferee. The seller shall file with the final sales tax return proof that it provided the transferee with the written notice described in the first sentence of this subsection.
C. The transferee of a business shall obtain from the city before the effective date of the transfer an estimate of the delinquent sales tax, penalty and interest, if any, owed by the seller as of the date of the transfer, and shall withhold that amount from the consideration payable for the transfer, until the seller has produced a receipt from the city showing that all tax obligations imposed by this chapter have been paid. A transferee that fails to withhold the amount required under this subsection shall be liable to the city for the lesser of the amount of delinquent sales tax, penalty and interest due from the seller as of the date of transfer, and the amount that the transferee was required to withhold.
D. In subsections B and C of this section, the term “transfer” includes the following:
1. A change in voting control, or in more than fifty (50) percent of the ownership interest in a seller that is a corporation, limited liability company or partnership;
2. A sale of substantially all of the assets used in the business of the seller; and
3. The initiation of a lease, management agreement or other arrangement under which another person becomes entitled to the seller’s gross receipts from sales, rentals or services. (Ord. 07-30 § 2, 2007: Ord. 01-38(SUB) § 2 (part), 2001)
5.16.140 Amended returns.
A. A seller may file with the city an amended sales tax return with supporting documentation, and the city may accept the amended return, but only in the following circumstances:
1. The amended return is filed within one year of the original due date for the return;
2. The seller provides a written justification for amending the return;
3. The seller held a current city business license for the period for which the amended return was filed and filed an original return for that period; and
4. The seller agrees to submit to an audit upon request of the city.
B. The city shall notify the seller in writing whether it accepts or rejects an amended return, including the reasons for any rejection. (Ord. 01-38(SUB) § 2 (part), 2001)
5.16.150 Tax return—Extension of time.
A. Upon written application of a seller, stating the reasons therefor, the finance director may extend the time to file a sales tax return, if the finance director finds each of the following:
1. For reasons beyond the seller’s reasonable control, the seller has been unable to maintain in a current condition the books and records that contain the information required to complete the return;
2. The seller has a reasonable plan to cure the problem that caused the seller to apply for an extension, the seller will commence and proceed with diligence to cure the problem, and the problem will be cured within a reasonable time; and
3. At the time of the application, the seller is not delinquent in filing any other sales tax return or in remitting sales tax to the city.
B. A penalty assessed under Section 5.16.120(D) for the delinquent remittance of sales tax or under Section 5.16.180(F) for failure to file a sales tax return may be waived by the finance director, upon written application of the seller accompanied by a payment of all delinquent sales tax, interest and penalty otherwise owed by the seller to the city, within forty-five (45) business days after the date of delinquency. A seller may not be granted more than one waiver of penalty under this subsection in any period of twenty-four (24) consecutive months. The finance director shall report all such waivers of penalty to the council in writing, at least once each calendar quarter. (Ord. 07-53 § 2, 2007: Ord. 05-20 § 4, 2005: Ord. 01-38(SUB) § 2 (part), 2001)
5.16.160 Use of information on tax returns.
A. Except as otherwise provided in this chapter, all returns, reports and information required to be filed with the city under this chapter, and all information contained therein, shall be kept confidential and shall be subject to inspection only by:
1. Employees and agents of the city whose job responsibilities are directly related to such returns, reports and information;
2. The person supplying such returns, reports and information; and
3. Persons authorized in writing by the person supplying such returns, reports and information.
B. The city will release information described in subsection A of this section pursuant to subpoena, order of a court or administrative agency of competent jurisdiction, and where otherwise required by law to do so.
C. Notwithstanding subsection A of this section, the following information is available for public inspection:
1. The name and address of a person who holds a current city business license; and
2. Whether a holder of a city business license is more than thirty (30) days delinquent in filing a return or remitting sales tax; and, if so, the number of returns not filed.
D. The city may publish the name of any seller that is delinquent in remitting sales tax, and the delinquent amount thereof. The city also may provide the public statistical information related to sales tax collections, provided that no information identifiable to a particular seller is disclosed. (Ord. 01-38(SUB) § 2 (part), 2001)
5.16.170 Tax records—Additional information from seller—Audits.
A. A seller shall maintain records of transactions supporting the information that it submits on its sales tax returns, including without limitation records of daily gross receipts from sales, rentals and services, invoices of purchases and sales, bills of lading and bills of sale. A seller also shall maintain records of transactions that are exempt from sales tax, including information that will substantiate the claim of exemption. The seller shall maintain all such records at a location within the city. The seller shall maintain all such records for a period not less than three years after the date of payment of the sales tax to which they pertain, except to the extent that the city has authorized in writing their destruction or disposal at an earlier date.
B. The records that a seller is required to maintain under subsection A of this section shall be subject to inspection and copying by authorized employees or agents of the city for the purpose of auditing any return filed under this chapter, or to determine the seller’s liability for sales tax where no return has been filed.
C. In addition to the information required on returns, the city may request, and the seller must furnish, any information deemed necessary for a correct computation of the tax.
D. The city may adjust a return for a seller if, after investigation or audit, the city determines that the figures included in the original return are incorrect, and that additional sales taxes are due; and the city adjusts the return within three years of the original due date for the return. (Ord. 01-38(SUB) § 2 (part), 2001)
5.16.180 Estimated tax.
A. If a seller fails to file a sales tax return, or if the city has reasonable cause to believe that any information on a sales tax return is not accurate, the city may estimate the sales tax due based on any information available.
B. The city shall notify the seller in writing that the city has estimated the amount of sales tax that is due from the seller under subsection A of this section, stating the estimated amount. The city shall serve the notice on the seller by delivering the notice to the seller’s place of business, or by mailing the notice by certified mail, return receipt requested, to the seller’s last known mailing address.
C. The city’s estimate of the amount of sales tax that is due from a seller shall become a final determination of the amount that is due unless the seller, within fifteen (15) days after service of notice of the estimated sales tax, gives the city a written request for a hearing.
D. A hearing requested under subsection C of this section shall be conducted before the mayor or the mayor’s designee, who may be a city employee. At the hearing, the seller shall have the burden of proving, by testimony or documentary evidence, that the amount of sales tax that is due is less than the amount that the city estimated. After the hearing, the person conducting the hearing shall issue a decision determining the amount of sales tax that is due from the seller. The city shall serve the decision on the seller by delivering the notice to the seller’s place of business, or by mailing the notice by certified mail, return receipt requested, to the seller’s last known mailing address.
E. A decision under subsection D of this section determining the amount of sales tax that is due may be appealed to the superior court as provided in the Alaska Rules of Appellate Procedure.
F. The amount of sales tax finally determined to be due under this section shall bear interest and penalty as provided in Section 5.16.120, from the date that the sales tax originally was due, plus an additional civil penalty of two hundred fifty dollars ($250.00) for each calendar month for which the amount of sales tax that is due has been determined. (Ord. 01-38(SUB) § 2 (part), 2001)
5.16.190 Violations—Remedies.
A. Each of the following is a violation of this chapter:
1. A buyer failing to pay sales tax to a seller as required by this chapter.
2. A seller failing to collect sales tax from a buyer as required by this chapter.
3. A seller failing to file a sales tax return or remit sales tax when due.
4. A buyer or seller knowingly submitting false information in a document filed with the city under this chapter.
5. A seller falsifying or concealing information related to its business activities in the city for the purpose of avoiding payment of sales tax.
6. A seller failing to permit the city to inspect records of the seller as required by this chapter.
7. A seller failing to maintain records as required by this chapter.
8. A buyer giving false information when applying for a certificate of exemption, or using a certificate of exemption in a transaction that was not exempt from sales tax under the exemption for which the certificate was issued.
9. A seller failing to notify a transferee of the seller’s business of the transferee’s withholding obligation under Section 5.16.130(C) or the transferee failing to withhold the amount required by Section 5.16.130(C).
10. A person causing or permitting a corporation of which the person is an officer or director, a limited liability company of which the person is a member or manager, or a partnership of which the person is a partner, to commit a violation of this chapter described in subsections (A)(1) through (9) of this section.
B. A person who is convicted of a violation of this chapter described in this section shall be subject to a fine of not more than one thousand dollars ($1,000.00) plus any surcharge required to be imposed by AS 29.25.074, imprisonment for not more than ninety (90) days, or both such fine and imprisonment.
C. Each act or omission in violation of this chapter, and each day in which the act or omission occurs, is a separate violation of this chapter.
D. A seller that fails to file a sales tax return or remit sales tax when due, in addition to any other liability therefor imposed by this chapter, shall pay to the city all costs incurred by the city to determine the amount of the seller’s sales tax liability or to collect the sales tax, including without limitation costs of obtaining, reviewing and auditing the seller’s business records, collection agency fees, and actual reasonable attorney’s fees.
E. A person who causes or permits a corporation of which the person is an officer or director, a limited liability company of which the person is a member or manager, or a partnership of which the person is a partner, to fail to collect sales tax or to remit sales tax to the city as required by this chapter shall be liable to the city for the amount that should have been collected or remitted, plus any applicable interest and penalty.
F. Pursuant to AS 29.45.650 there is created a lien on the real and personal property of a seller to secure the payment of sales tax, interest, penalty and costs of collection. The finance director shall cause notice of the lien to be recorded with respect to the property of a seller when the finance director finds that the seller is delinquent in remitting sales tax to the city. The notice shall state the name of the seller; the amount of delinquent sales tax, interest, penalty and cost of collection owed by the seller as of a specified date; and that interest, penalty and costs will continue to accrue until payment is made. Within ten (10) days after recording the notice, city shall mail a copy of the notice by certified mail, return receipt requested, to the last known address of the seller; provided, that failure of the city to mail the notice or of the seller to receive it shall not affect the validity or priority of the lien.
G. The city may bring a civil action to:
1. Enjoin a violation of this chapter. On application for injunctive relief and a finding of a violation or threatened violation, the superior court shall enjoin the violation.
2. Collect delinquent sales tax, penalty, interest and costs of collection, either before or after estimating the amount of sales tax due under Section 5.16.180.
3. Recover a civil penalty of one thousand dollars ($1,000.00) for each violation of this chapter.
4. Foreclose a recorded sales tax lien as provided by law.
H. All remedies for violations of this chapter are cumulative and are in addition to any others existing at law or in equity. (Ord. 07-30 § 3, 2007: Ord. 01-38(SUB) § 2 (part), 2001)
5.16.200 Regulations.
The mayor may adopt, amend and repeal regulations to implement, interpret or make specific the provisions of this chapter, or prescribe forms to be used under this chapter. (Ord. 01-38(SUB) § 2 (part), 2001)
5.16.210 Property tax limit—Use of sales tax.
A. Property Tax Limitation. The two percent city sales tax levy is conditioned on the city property tax levy being limited to a maximum of two mills.
B. Use of Sales Tax for Police. The two percent city sales tax levy is on the condition that sales tax first be appropriated to fund a police department and the remaining tax be appropriated through the ordinary public budget process. (Ord. 01-38(SUB) § 2 (part), 2001)