Chapter 9.16
SALES TAX1
Sections:
9.16.020 Mill rate contingency.
9.16.040 Borough provisions adopted by reference.
9.16.060 Forgiveness of uncollected taxes, penalties and interest.
Prior legislation: Ord. 85-17.
9.16.010 Levied.
a. A consumer’s sales tax in the amount of three percent is levied by the City on all sales, rents and services within the City except as the same may be otherwise exempted by law.
b. An additional consumer’s sales tax in the amount of three-quarters of one percent is hereby levied by the City of Homer on all sales, rents and services within the City except as the same may be otherwise exempted by law, for the purpose of funding debt retirement of the sewer treatment plant improvements, and, to the extent revenues from such tax exceed such debt retirement obligations, for the purpose of funding water and sewer systems.
c. An additional consumer’s sales tax in the amount of three-quarters of one percent is hereby levied by the City of Homer on all sales, rents and services within the City except as the same may be otherwise exempted by law, for the purpose of funding of street reconstruction improvements and related utilities, construction of new local roads, construction of new local trails, and maintenance of local roads and trails.
d. An additional consumer’s sales tax in the amount of thirty-five hundredths of one percent is hereby levied by the City of Homer on all sales, rents and services within the City, except as the same may be otherwise exempted by law, for the purpose of funding public safety operations and infrastructure within the City, including without limitation construction of a police station, with three-tenths of one percent of the sales tax rate providing funds to pay debt service on general obligation bonds authorized by Ord. 18-26(A)(S)(A) and expiring on December 31st of the year when the City has received sufficient funds from that sales tax rate to pay all of that debt service.
e. The funds and fund activities described in subsections (a) through (d) of this section shall be separately accounted, and there shall be quarterly reports to the Homer City Council reflecting each fund’s inflows and outflows, marked against their respective budgetary histories and projections. [Ord. 21-31(S)(A) § 2, 2021; Ord. 18-26(A)(S)(A) § 3, 2018; Ord. 17-10(S)(A) § 4, 2017; Ord. 15-36(A-2) §§ 1, 2, 2015; Ord. 06-42 § 2, 2006; Ord. 05-03(A) § 2, 2005; Ord. 99-14(S)(A) § 1, 1999; Ord. 91-19(S)(A) § 1, 1991; Ord. 90-29 §§ l, 2, 1990; Ord. 87-19 § 1, 1987; Ord. 85-37 § 2, 1985].
9.16.020 Mill rate contingency.
The sales tax enacted by HCC 9.16.010(a) shall remain in effect only in such years that the City Council sets the property mill levy at six mills or less. In such years as the property mill levy exceeds six mills, this sales tax levy shall not be in effect. [Ord. 90-29 § 4, 1990; Ord. 85-37 § 3, 1985].
9.16.040 Borough provisions adopted by reference.
Subject to HMC 9.16.100 and 9.16.110, those sections of the Kenai Peninsula Borough Code of Ordinances applicable to the levy and collection of the sales tax described in this chapter are incorporated by this reference and made a part of this chapter as though fully set forth in this chapter. [Ord. 15-19(A-2) § 2, 2015; Ord. 92-27, 1992; Ord. 92-11(A) § 2, 1992; Ord. 85-37 § 6, 1985].
9.16.050 Civil penalties.
a. Failure to Obtain Certificate of Registration. A seller who is required to obtain a certificate of registration under Chapter 5.18 KPBC but fails to do so within the time prescribed is subject to a civil penalty equal to 25 percent of the amount of any City tax found to be due in addition to payment of the actual amount of City taxes.
b. Failure to File Return. A seller who fails to file a timely return, or who fails to remit all City taxes collected by him or later found to be due, is subject to a civil penalty of five percent per month of the amount of City taxes found to be due, to a maximum of 25 percent. The filing of an incomplete return, or the failure to remit all taxes, is the equivalent of filing no return. All City taxes due but not paid within the time required shall accrue and be assessed an interest charge at the maximum statutory rate as provided by AS 29.45.650(d).
c. The provisions of this section shall be enforced by the Kenai Peninsula Borough pursuant to KPBC 5.18.100(b). [Ord. 92-11(A) § 3, 1992; Ord. 90-29 § 6, 1990].
9.16.060 Forgiveness of uncollected taxes, penalties and interest.
a. If, pursuant to the provisions of KPBC 5.18.270, the Kenai Peninsula Borough forgives payment of a Borough sales tax, penalties or interest thereon, the City Manager may grant forgiveness of any corresponding City sales tax, penalties or interest.
b. The City Manager shall notify the City Council in writing of any such incidence of forgiveness which shall be final unless overridden by the Council, within 30 days of such forgiveness. [Ord. 92-11(A) § 4, 1992; Ord. 90-29 § 7, 1990].
9.16.070 Sales tax liens.
a. Sales taxes, together with penalties, interest, and costs of administration, shall constitute a lien in favor of the City upon all real and personal property of every person making sales subject to City sales taxes and, when recorded, sales tax liens are prior and paramount to all other liens or encumbrances against the property except as provided by AS 29.45.650(e).
b. A lien imposed by subsection (a) of this section may be filed and recorded by the Kenai Peninsula Borough pursuant to KPBC 5.18.660. Enforcement of City sales tax liens by foreclosure or any other remedy shall be administered by the Kenai Peninsula Borough. [Ord. 92-11(A) § 5, 1992; Ord. 90-29 § 8, 1990].
9.16.100 Exemptions.
The following sales of items are exempt from sales tax:
a. Except as provided in HMC 9.16.110, sales of nonprepared food items occurring from September 1st through May 31st of each year.
b. The sale of all other items granted exemption from sales tax under the Kenai Peninsula Borough Code as amended from time to time, except where the Kenai Peninsula Borough by ordinance expressly authorizes the City to tax a source exempted from sales tax by the Kenai Peninsula Borough Code and City imposes a sales tax on that source in compliance with the law. [Ord. 15-19(A-2) § 3, 2015; Ord. 13-17(S) § 18, 2013; Ord. 08-32(S)(A-2) § 1, 2008].
9.16.110 Sales tax.
Sales of the following prepared food products shall be subject to sales tax 365 days a year:
a. Beverages containing less than 50 percent fruit or vegetable juice, including soft drinks, energy drinks and sports drinks, but excluding dairy and dairy substitute beverages;
b. Candy;
c. Potato and corn chips, pretzels, crackers and other ready-to-eat snack foods;
d. Ready-to-eat baked products, including cookies, cake, donuts, Danish, and muffins, but excluding bread;
e. Ice cream, sherbet and other frozen desserts;
f. Prepackaged or made-to-order sandwiches, wraps and salads. [Ord. 15-19(A-2) § 4, 2015].
For statutory provisions authorizing cities to levy sales taxes, see AS 29.45.700 and 29.45.710.