Chapter 3.80
SALES TAX Amended Ord. 19-05-537

Sections:

3.80.010    Purpose and intent.

3.80.020    Definitions. Amended Ord. 19-05-537

3.80.030    Levy of sales tax – Rate.

3.80.035    Levy of transient lodging taxes.

3.80.040    Bracket collection schedule.

3.80.050    Exempt transactions.

3.80.060    Procedures and forms.

3.80.070    Revocation of exemption.

3.80.080    Seller to add tax to selling price.

3.80.090    Monthly returns – Penalties and interest for delinquency.

3.80.100    Collection remedies.

3.80.110    Sellers compensatory collection discount.

3.80.120    Delinquency – Failure to submit return or to remit taxes – Assessments.

3.80.130    Sales tax inspector, inspection and collection procedures.

3.80.140    Separate accounting.

3.80.150    Protest of tax.

3.80.160    Forgiveness of uncollected taxes, penalties and interest.

3.80.170    Borough business license.

3.80.180    Inspection of state business license.

3.80.190    Sale of business – Final tax return – Liability of purchaser.

3.80.200    Lien for tax, interest and penalty.

3.80.210    Collected taxes.

3.80.220    Use of proceeds.

3.80.230    Records retention period.

3.80.240    Disposition of sales tax records.

3.80.250    Refunds for errors discovered by taxpayer.

3.80.260    Violations a minor offense.

3.80.010 Purpose and intent.

It is the purpose of the tax levied under this chapter to raise revenues. To that end, the scope of the tax levied shall be broadly interpreted and exemptions shall be allowed only when the rental, sales or service clearly falls within an exemption defined in this chapter.

3.80.020 Definitions. Amended Ord. 19-05-537

For the purposes of this chapter, the following words and phrases shall have the meanings respectively ascribed to them by this section:

“Buyer, consumer and person,” includes, without limiting the scope thereof, every individual, receiver, assignee, trustee in bankruptcy, trust estate, firm, co-partnership, joint venture, club, company, business trust, corporation, association, society, or any group of individuals acting as a unit, whether mutual, cooperative, fraternal, nonprofit or otherwise.

“Clerk” means the borough clerk or designee.

“Guest” means an individual, corporation, partnership, or association paying monetary or other consideration for the use of space in any place of lodging.

“Lodging” means accommodations for dwelling, sleeping or lodging purposes, including hotels, motels, inns, and short-term rentals located within the Haines Borough.

“Long-term” is a term of nine months or more.

“Rent” or “lease” means the amount paid or promised in terms of money, as consideration for use of space in a dwelling, apartment or commercial establishment, or for use of any tangible personal property.

“Retail sale” means any sale of real or tangible personal property, including barter, credit, installment and conditional sales, for any purpose other than resale in the regular course of business. The delivery of property in the borough by a seller whose principal place of business is outside the borough to a buyer or consumer is a retail sale made within the borough if such retailer maintains any office, distribution, or sales house, warehouse or any other place of business, or solicits business or receives orders through any agent, salesperson, or other type of representation within the borough.

“Sale for resale” means the sale of tangible personal property to a buyer whose principal business is the resale of the property whether in the same or an altered form.

“Seller” includes every person making sales to a buyer or consumer, renting or leasing property, either real or personal, or performing services for consideration.

“Selling price” and “price” mean the consideration, whether money, credit, rights or other property, expressed in terms of money, paid, given or delivered by a buyer to a seller all without any deduction on account of the cost of property sold, the cost of materials used, labor costs, interest, discount, delivery costs, taxes, or any other expenses whatsoever paid or accrued, and without any deduction on account of losses.

“Services” includes all services of every manner and description that are performed or furnished for consideration whether in conjunction with the sale of goods or not, but does not include services rendered by an employee to an employer.

“Short-term rental (STR)” means a single accessory dwelling unit, or room within a dwelling, which is rented by or on behalf of the owner for compensation for transient occupancy for a period of less than nine months. An STR includes, but is not limited to, vacation rentals, private homes offering bed and breakfasts, guest rooms within a dwelling, lodges or boarding houses. Tents, camp trailers, and RVs accommodating an owner or an owner’s guests are not short-term rentals.

“Transient lodging” means lodging that is provided for fewer than 30 consecutive days. (Ord. 18-07-500 § 4; Ord. 04-05-055)

3.80.030 Levy of sales tax – Rate.

A. A consumer’s sales tax is hereby levied on all retail sales made, on all rents or leases paid and on all services performed within the borough in the regular course of business except such as hereinafter exempted. The tax is levied in the following amounts:

1. Areawide is four percent.

2. Within the townsite is an additional one and one-half percent.

3. A discount of one-half of one percent shall be applied to transactions in the area south of the southern boundary line of Township 34 south.

B. If parts of a sale, service, rental or lease or combination thereof (hereinafter referred to as “transaction”) occur separately inside the townsite service area and the borough outside the townsite service area, or occur over a period of time during which two different tax rates apply, the tax shall be the highest rate applicable to any part of the transaction and shall be applied to the price of the entire transaction.

If, however, a part of the transaction is regularly offered on a separate basis by the seller and the seller invoices and prices such various parts of the transaction separately in accordance with the location of the parts of the transaction, or the time of the transaction, then the sales tax rate for that location or the rate in effect at that time shall apply.

A sale of goods is taxable at the combined borough and townsite service area rate if the point of sale, or the place of business, or the point of delivery is within the townsite service area. (Ord. 18-07-500 § 5; Ord. 05-09-123; Ord. 05-08-120)

3.80.035 Levy of transient lodging taxes.

A. A sales tax equal to four percent of the rent is levied on all transient lodging rentals within the borough.

B. Rentals of lodging for a period of less than 30 consecutive days shall be subject to the transient lodging tax even if the space was originally taken with the intent to use or occupy the space for 30 or more consecutive days.

C. Each guest is responsible for paying the transient lodging tax imposed by this section. The tax shall be due and payable at the time the rent for the lodging is paid. Any unpaid tax due to a change in the length of an occupant’s stay shall be due and payable when the guest ceases to occupy or use space at the place of lodging.

D. Every operator renting transient lodging subject to taxation under this section shall collect the taxes imposed by this section from the guest at the time of collection of the rent for the space and shall transmit the same to the borough.

E. Except as otherwise provided in this section, the reporting, collection and penalties for failure to comply with this section shall be governed by the provisions of this code applicable to other sales taxes. (Ord. 17-08-475 § 4)

3.80.040 Bracket collection schedule.

A. Sellers shall add the tax levied in this chapter to the selling price, rent or service charged in accordance with a schedule promulgated by the assembly unless authorized by the assembly or its designee under subsection (B) of this section to include the tax in the selling price.

B. The sales tax may be included in the selling price of sales made through coin-operated devices, sales of food and beverages at concession stands and other places with high customer volume, metered sales where the sales price is computed by the metering device, admissions and other taxable sales when the assembly or its designee determines buyer and seller convenience would be substantially enhanced, upon specific written authorization from and under terms and conditions required by the assembly or its designee.

3.80.050 Exempt transactions.

The tax levied under this chapter shall not apply to the following:

1. Casual and isolated sales not made in the regular course of business;

2. Sales, services, rentals, and transactions that a municipality is prohibited from taxing under the Constitution and laws of the United States or the state;

3. Sales of goods resulting from orders received from outside the borough where delivery is made outside the borough by mail or common carrier;

4. Sales of construction materials and services exceeding $5,000 for use in each construction project paid for by any one purchaser during any 12-consecutive-month period. Construction materials are defined as those items becoming a permanent part of the structure.

Purchaser must initially pay all sales tax on such materials and services. At the end of the 12-month time period and within one year thereafter, purchaser must submit a completed sales tax refund form (provided by the borough office) along with qualifying receipts. The borough will review and refund to the purchaser all sales taxes paid on allowable construction materials and services that exceeded $5,000 during the 12-month period.

If the project is not complete within the 12-month period, the purchaser may apply for an extension of the exemption by signing an affidavit that the purchaser is continuing work on the same project. A total of two 12-month extensions may be applied for with respect to the same project. The refund procedure shall follow the same requirements as the first 12-month period. The total time period for sales tax refunds on any one project shall not exceed three years.

The project shall be reviewed and assessed yearly by the borough assessor.

The contractor may come to the borough office and pay a sum equal to the appropriate sales tax on a $5,000 purchase. The contractor will then be issued a numbered sales tax exemption permit which will exempt the purchaser from paying sales tax on the purchase of construction materials and services on the particular project named for a 12-month period. The permit number must be shown to all vendors by the purchaser on all purchases covered by this subsection and be recorded on all sales tickets at the time of purchase of materials or services by the vendor;

5. Sales of insurance and bonds of guaranty and fidelity, and the commissions thereon;

6. Sale of transportation to students to and from grade or high schools in motor or other vehicles;

7. Sales of goods, services, and rentals by school-sanctioned groups;

8. Sale of cemetery plots, caskets, funeral and burial-related items and services by a funeral home;

9. Sale of goods and services performed in the course of and necessary in the treatment by medical doctors, hospitals, dentists, optometrists, osteopaths, midwives, birth centers, chiropractors, and other medical practitioners licensed or certified by the state of Alaska, and the sale of goods and services performed pursuant to a prescription or written order from one of the above;

10. Sale of nursing services and of counseling by clinical psychologists licensed by the state of Alaska;

11. Sales and rentals of hearing aids, crutches, wheelchairs and personal property specifically manufactured for a patient;

12. Membership dues and assessments, initiation fees and donations paid to labor unions, fraternal organizations and other nonprofit organizations that have obtained exemption certificate 501(c) from the Internal Revenue Service;

13. Sales, services, and rentals to a buyer or made by a seller, organized and administered solely by the exempt organization that meets the following qualifications:

a. Has obtained exemption certificate 501(c)3, 501(c)4, 501(c)8, or 501(c)19 from the Internal Revenue Service;

b. Is currently incorporated by the state of Alaska as a nonprofit corporation;

c. Has purchased an annual exemption card (which card shall be purchased for the annual cost equivalent to the townsite service area sales tax levied on a total of $500.00 in purchases) issued by the borough clerk.

This exemption applies to sellers only if the income from the exempt sale is exempt from federal income taxation;

14. Sales, services and rentals to or by a foreign government, the United States government, the state and its political subdivisions, and municipalities;

15. Sale of goods and beverages in public or private common high school or college cafeterias, not operating for profit;

16. Child day care, pre-elementary-school and babysitting services;

17. That part of the selling price of a single item that exceeds $10,000. A single item is an item sold in a single sale consisting of integrated and interdependent component parts affixed or fitted to one another in such a manner as to produce a functional whole. It includes optional accessories for such items as boats and automobiles if the accessories are useful or essential for the operation or use of the item;

18. That part of the selling price of services performed that exceeds $5,000 for a single service which is an interrelated and interdependent function;

19. That part of the periodic rental price exceeding $5,000 of the rental of a single item of personal property. The periodic rental price is the amount owed on a monthly or more frequent period; rentals exceeding a payment period of one month recomputed for sales tax purposes as though payment were to be made on a monthly basis;

20. Commissions charged on the sale of travel, lodging, adventure and similar and related services;

21. Sales and services by banks, savings and loan associations, credit unions and investment banks;

22. Printing services resulting from orders received from outside the borough where delivery of the printed material is made to the nonresident purchaser outside the borough by mail or common carrier;

23. Fees charged for nonprofit youth day, recreation, summer and similar camps primarily serving persons under 18 years of age;

24. All single item sales, rentals, and services under $500.00, occurring during the hours, under the auspices and in direct participation with the annual Southeast Alaska State Fair, excluding any businesses in the Dalton City attraction who have a rental agreement with the S.E. Alaska State Fair to operate their businesses within the confines of the Dalton City attraction at times other than during the S.E. State Fair;

25. Trade-in sales; the value of new or used articles taken in trade as a credit on part payments on the sale of new articles shall be deductible from the total sales price of the new article, and a tax paid only on the net sales price;

26. Purchases made with food stamp coupons;

27. Water and sewer services;

28. Sales between related parties as defined in Internal Revenue Code Section 267(b);

29. Sales of Services for Resale. A service is sold for resale when the service is directly integrated into services or goods sold by the buyer located within the borough and registered with the sales tax administrator, to another purchaser in the normal course of business; provided, that the service is purchased separately for each resale, and the service is identified, charged for and billed for separately from any other service. This exemption does not apply to sales of tours to buyers for resale to the ultimate consumers of the tours, nor does any sale of services on consignment or commission qualify for exemption;

30. Sales of goods and services provided under a warranty or service contract, whether performed by the manufacturer or authorized representative of the manufacturer, and charged to third party warrantor for repairs, major maintenance, or both. Major maintenance does not include routine or scheduled maintenance attributable to normal operation of the warranted item;

31. Sales tax paid on leases under a lease/purchase agreement may be credited toward the payment of the tax due on the exercise of the purchase option in the same proportion as the lease payments are applied to the purchase price; provided, that there will be no refund of taxes paid on the lease;

32. Sales of any goods or services within the borough that are temporarily exempted by a resolution adopted by the assembly and sold during the specified exemption period not to exceed six consecutive months;

33. Long-term rental of a dwelling, home, apartment or condominium used as a residence. (Ord. 18-07-500 § 6; Ord. 17-07-463 § 4; Ord. 05-09-123; Ord. 05-01-095; Ord. 04-07-073)

3.80.060 Procedures and forms.

The clerk shall adopt and amend procedures, regulations, fees and forms for the administration of this chapter, and shall adopt guidelines for the determination of the taxability of transactions and may rule on specific transactions upon request. The written ruling on a specific sale may be relied upon by the parties to that sale unless essential facts were not provided to the person making the ruling or the ruling is clearly contrary to the provisions of this code. The burden of proving an exemption shall be on the person claiming an exemption. Persons claiming an exemption may be required to obtain an exemption certificate. Certificates issued under this chapter shall expire as determined by the clerk or the clerk’s designee.

3.80.070 Revocation of exemption.

A. The clerk may revoke any exemption authorization, certificate or other authority to obtain an exemption if the person entitled to the exemption has been found to have used the exemption authorization or certificate to obtain an exemption to which the exemption holder is not entitled or has permitted another to use the exemption authorization or certificate to obtain an exemption to which the other person is not entitled.

B. Upon a determination by the clerk that an exemption holder has misused or permitted another to misuse a sales tax exemption authorization or certificate issued to the holder, the clerk may revoke the sales tax exemption authorization or certificate of such person. Prior to revocation, a public hearing shall be held at which the person with the exemption may be present and at which the evidence of misuse shall be presented. The holder shall be given an opportunity to refute any evidence presented and to cross-examine the person who made the investigation. The holder and witnesses called by the holder may also be cross-examined.

C. The revocation shall be permanent unless the clerk provides for a shorter period in the revocation order.

D. The order and period of revocation may be appealed to the assembly if the appeal is filed in writing with the clerk within 10 days of the receipt of the written order. The decision of the clerk is final and may be appealed only to the assembly.

E. A person who obtains or attempts to obtain an exemption from the sales tax for a sale or rental when the person is not entitled to the exemption is guilty of a misdemeanor.

3.80.080 Seller to add tax to selling price.

Every seller shall add the amount of the tax levied by this chapter to the total selling price, and the tax shall be stated separately on any sales receipts or slips, rent receipts, charge tickets, invoices, statements of account or other tangible evidence of sale unless the sales tax is permitted to be included in the selling price under HBC 3.80.040.

3.80.090 Monthly returns – Penalties and interest for delinquency.

A. The clerk shall provide appropriate forms for the use of taxpayers in making returns of the taxes payable under this chapter. Subject to subsection (D) of this section, every person, firm or corporation making such sales, renting property or supplying such services as are taxable within the borough shall, on or before the tenth day of the month following the end of the calendar month which follows the calendar month for which the return is made, complete a return for the preceding month setting forth the total amount for such preceding month of all sales, rentals, and services regardless of whether such transactions are taxable or nontaxable, the amount of tax due, and such other information as the borough may require and sign and deliver or mail the same to the clerk. A seller other than a governmental agency making only exempt sales shall file for the preceding calendar year or such other fiscal year as the clerk may authorize. Such returns must be delivered or mailed by the last day of the month following the last day of the year for which the request is made.

B. Subject to subsection (C) of this section, the tax levied under this chapter, whether or not collected from the buyer, must be remitted by the seller to the borough at the time of transmitting the return, and if not so remitted or if the return is not filed in a timely manner, such tax is delinquent. The postmark shall determine the date of filing mailed returns. In addition, a late payment penalty of 10 percent for the first month or any fraction thereof, and an additional five percent per month accrued, until a total late payment penalty of 25 percent has accrued shall be added to all returns until such tax, penalty, and interest thereon have been paid. Such penalty shall be assessed and collected in the same manner as the tax is assessed and collected. In addition to these penalties, interest at a rate of 15 percent per year on the delinquent tax, from the date of delinquency until paid, shall accrue and be collected in the same manner the delinquent tax is collected.

C. The seller shall report and remit sales tax to the borough on the same basis, cash or accrual, the seller uses for reporting federal income tax. A seller reporting on the accrual basis shall be allowed a tax credit for sales previously paid by the seller on any sale, service or rental made on credit to the extent the seller declares such debt to be uncollectible and a bad debt for federal income tax purposes. Such bad debt must be claimed on a timely filed sales tax return within two years from the date of sale in which the bad debt arose.

D. Businesses with taxable gross monthly receipts of $3,000 or less may file and pay sales tax quarterly, provided notice is given the borough that this option is being exercised prior to an account’s delinquency under subsection (B) of this section.

1. A quarter is three months, the first quarter is January, February and March; the second quarter is April, May and June; the third quarter is July, August and September; the fourth quarter is October, November and December.

2. When filing quarterly, taxes shall be paid and returns filed on or before the twentieth day of the month following the third month of the quarter for which the return is made.

3. When filing quarterly, interest shall be charged on the whole of the unpaid tax for the delinquent quarter from the date delinquent until paid.

4. If taxable gross receipts for any one month of a quarter are more than $3,000, the allowance for quarterly filing is voided and the monthly filing and payments must be instituted.

5. Businesses with taxable gross monthly receipts of $3,000 or less that have failed to file sales tax returns and remit sales tax receipts to the borough in a timely manner must file on a monthly basis rather than a quarterly basis. (Ord. 15-03-402 § 4; Ord. 06-05-143)

3.80.100 Collection remedies.

Any special remedies for the recovery of sales tax shall not be deemed exclusive of any other remedy, civil or criminal or both, now provided by law for the recovery of moneys due and owing the borough.

3.80.110 Sellers compensatory collection discount.

All sellers and persons rendering sales tax returns to the borough shall be allowed to compensate themselves for costs incurred in the collection, record keeping, remittance, and accounting for the tax imposed by taking one percent of the tax due as a tax collection discount. The discount shall be applied to reduce the tax to be remitted on any monthly return that is filed at any time during the month following the month that taxes are collected with a remittance of all sales taxes due for that month. The deduction may not be taken if any sales tax, penalty, or interest is due for any previous reporting period.

3.80.120 Delinquency – Failure to submit return or to remit taxes – Assessments.

A. Whenever any seller has become delinquent in the submission of the required monthly sales tax returns/remittance, the clerk shall mail to the delinquent seller’s last known address a letter reminding seller of late filing. The letter shall also state a date that the delinquency will be reported in the local newspaper and steps the seller must take to prevent the seller’s name/business from being part of this published list. This procedure shall be followed for the first two months of delinquency. However, when a seller becomes delinquent in the submission of the required monthly returns or in remitting sales taxes for three consecutive months, the clerk shall mail to the delinquent seller’s last known address a written demand by certified mail, return receipt requested, for submission of the corrected or required sales tax return and remittance within 10 days.

B. In the event of noncompliance with such demand, the clerk may make a sales tax assessment against the delinquent seller, the assessment to be based on an estimate of the gross taxable revenue received by the seller during the three-month period in question. A copy of the assessment shall be sent to the seller at the seller’s last known address by certified mail, return receipt requested, with a letter of demand for payment in full. The seller shall be informed that if payment is not made in full within 14 days, the delinquency shall be submitted to the local small claims court and the small claims court’s time frame will be adhered to from this point, and a date and time for a hearing shall be established by such court unless a later time is mutually agreeable. The person conducting the hearing shall issue an amended assessment if he determines an amendment should be made. The amended assessment, or the original assessment if no amendment is made within five days of the hearing, shall be the final assessment for the purpose of determining the seller’s liability to the borough.

3.80.130 Sales tax inspector, inspection and collection procedures.

A. The assembly may designate a person or firm to make investigations and inspections of the books and records of any persons, firms or corporations who are, or are reasonably believed to be, liable for taxes under this chapter. Such person shall be the sales tax inspector of the borough.

B. The sales tax inspector is hereby authorized and empowered to make inspections of all the books and records pertaining to purchases, sales, services and rents made, furnished, paid or performed by parties who are or may be liable for the tax levied under this chapter. These books and records include, but are not limited to, records of purchases made by retailers from wholesalers or other retailers, the ledger accounts of customers of the taxpayers, the sales slips made by taxpayers and all other books and records of the taxpayers which would in any way tend to prove or reveal information concerning the tax liability of the taxpayer.

C. It shall be the duty of every person engaged in retail business, or in furnishing services to the public in the borough, to allow the sales tax inspector to examine such books and records during regular business hours at such times as the sales tax inspector shall require. If the sales tax inspector shall find that unreported tax liabilities exist or that discrepancies in favor of the borough between the sales reported to the clerk and the sales which appear to have been made by any taxpayer, it shall be the duty of the clerk to demand by certified mail, return receipt requested, that the taxpayer forthwith make amended returns showing the correct amount of tax payable for each month for which such discrepancies appear and to pay the taxes due the borough.

D. Unless a taxpayer upon whom such demand is made shall make such returns and pay the taxes due the borough within 15 days from the date of the demand by the clerk, the clerk shall report the facts in full to the assembly. The clerk shall keep confidential all facts which have been learned as a result of such investigations until such time as the same are reported to the assembly.

E. In the event of a dispute between the taxpayer and the clerk as to the amount of tax due, the taxpayer may within five days of the demand made upon the taxpayer for the filing of amended returns and the payment of such taxes, demand a hearing before the assembly on the taxpayer’s tax liability. In such event, the assembly shall, at its next regular meeting, set a date for hearing within 15 days thereafter, and the clerk shall notify the taxpayer of the time and place at which such hearing will be held. The assembly shall, after receiving a report from the clerk of delinquent taxes and conducting a hearing, if the taxpayer demanded the same, take such action at law as is necessary to collect any taxes which the assembly shall find to be delinquent including interest payable.

3.80.140 Separate accounting.

The taxes hereby imposed shall be paid to and collected by the borough, and shall be accounted for separately and utilized for any lawful use for which the funds shall have been appropriated by the assembly.

3.80.150 Protest of tax.

A. A buyer who protests the payment of the tax levied under this chapter shall pay the tax and shall provide the seller and the clerk with a written statement of protest within five working days of the sale that identifies the sale, rental, or service that is the subject of the tax protested, the amount of tax paid, the buyer’s and seller’s name, mailing address, telephone number and the basis for the protest.

B. If the seller protests the seller’s liability on an assessment under HBC 3.80.120 which has become final, he shall pay the tax under written protest setting forth the basis for the protest. No action for a refund may be maintained nor may a defense to nonpayment be maintained in a civil action unless the amount in dispute has been paid by the seller under written protest filed at or before the time of payment.

3.80.160 Forgiveness of uncollected taxes, penalties and interest.

The clerk, with the consent of the assembly, may forgive the payment of uncollected sales taxes, interest and penalty thereon and penalties for failure to file owing by a seller to the borough upon a determination by the clerk that such uncollected sales taxes have never been collected by a substantial portion of a clearly definable class of seller or which have never been collected on a substantial portion of a clearly defined class or type of transaction or service.

3.80.170 Borough business license.

No individual or entity may engage in business in the Haines Borough without first having been issued a Haines Borough business license pursuant to Chapter 5.02 HBC.

3.80.180 Inspection of state business license.

Each person who exercises the privilege of doing business within the borough thereby consents to the inspection of the person’s Alaska State business license in order to facilitate the administration of this chapter.

3.80.190 Sale of business – Final tax return – Liability of purchaser.

A. If any seller sells, assigns, transfers, conveys, leases, forfeits, or abandons the business to another person, including a creditor or a secured party, the seller shall make a final sales tax return within 15 days after the date of selling, assigning, transferring, conveying, leasing, forfeiting or abandoning the business showing that all tax obligations required by this chapter have been paid. The purchaser, successor, transferee, lessee, assignee, creditor, or secured party shall withhold a sufficient portion of the purchase money, if any, to safely cover the amount of such sales taxes, penalties and interest as may be due and unpaid to the borough.

B. If any purchaser, assignee, transferee, lessee, successor, creditor, or secured party of a business fails to withhold from the purchase money, or fails to otherwise provide for or make the payment of taxes, interest and penalty owed by the business as provided in this chapter, a person with signatory authority over the seller’s savings and checking accounts, and the purchaser, assignee, transferee, lessee, successor, creditor, or secured party, shall be personally liable for the payment of the taxes, penalties, and interest accruing and unpaid to the borough on account of the operation of the business by any former owner, owners, operators or assigns.

3.80.200 Lien for tax, interest and penalty.

A. The tax, interest and penalty imposed under this chapter, plus the lien filing fee under subsection (B) of this section, shall constitute a lien in favor of the borough upon the assets, including all real and personal property, of every person making taxable sales within the borough. The lien arises upon delinquency and continues until liability for the amount is satisfied or the property of the delinquent person is sold at foreclosure sales. The lien is not valid as against a prior mortgagee, pledgee, purchaser, or judgment creditor until notice of the lien is filed in the office of the recorder for the Haines recording district in the manner provided for federal tax liens in AS 40.19.

B. Fees for the filing and releasing of liens shall be:

1. Filing of liens, $25.00 plus recorder’s office filing fee;

2. Release of liens, $25.00 plus recorder’s office filing fee.

The above rates may be changed by the clerk from time to time to reflect the costs of providing municipal services generally.

3.80.210 Collected taxes.

Taxes collected under this chapter by a seller shall belong to the borough and shall be held by the seller in trust for the borough until paid over as provided in this chapter.

3.80.220 Use of proceeds.

A. Borough-Wide Sales Taxes. Of the proceeds of the four percent sales tax levied throughout the borough under HBC 3.80.030, one-half percent shall support the provision of medical services in the authorized area of service, including all areas within the borough except the area south of the southern boundary line of Township 34 south; one percent shall be used for tourism development and promotion and economic development; one and one-half percent shall be dedicated to areawide capital projects; and the remaining one percent shall be used for areawide general municipal purposes.

B. Townsite Service Area Sales Taxes. The proceeds of the one and one-half percent of tax levied and collected within the townsite service area shall be used for general municipal purposes that benefit the townsite service area. (05-08-120)

3.80.230 Records retention period.

Every person required to file a return hereunder or to pay a tax hereunder shall retain for a period of 25 months after filing the return all sales slips, invoices, tax reports, forms, records and other books and documents reflecting sales made, rents collected or services performed and the remuneration charged or received therefor during the period for which the return is filed.

3.80.240 Disposition of sales tax records.

Sales tax records in the possession of the borough shall be kept confidential except when their production is required in an official investigation or court proceeding. This restriction does not prohibit the publication of statistics presented in a manner that prevents the identification of particular reports and items, or prohibit the publication of tax lists showing the names of taxpayers who are delinquent and relevant information which may assist in the collection of delinquent taxes. Sales tax records shall be destroyed as per an adopted retention schedule.

3.80.250 Refunds for errors discovered by taxpayer.

If, through error or otherwise, the taxpayer pays to the borough sales taxes to which the borough is not entitled by law, the taxpayer may, within 25 months from the date of the tax payment, apply to the clerk for a refund. The taxpayer must submit a written request to the clerk including copies of records substantiating evidences of erroneous payments. If the claim for refund shows that the taxpayer is entitled to a refund, such refund shall be made by the clerk. The borough shall be liable only for the amount of the erroneous payment and shall not be held liable for any payment of interest on the tax payment from the date paid until a refund is made.

3.80.260 Violations a minor offense.

A seller, including a person, firm, copartnership or corporation, or an officer, director or agent of a corporation acting on behalf of the seller, including a person with signatory authority over any corporate savings or checking accounts, who violates a provision of this chapter or who fails or refuses to comply with a request or demand of the clerk authorized or made under this chapter commits a minor offense. Prosecution under this chapter shall not limit the borough’s right to collect in a civil action all unpaid taxes, penalty and interest which may be owed. (Ord. 15-06-413 § 8)