Chapter 3.30
SALES TAX
Sections:
Article I. General Provisions
3.30.030 Duty of seller to collect.
3.30.040 Tax added to sales price.
3.30.060 Unlawful for seller to fail to collect.
3.30.070 Tax to be paid quarterly.
3.30.080 Compensatory collection discount.
3.30.090 Duty to keep books – Investigations.
3.30.100 Penalty and interest on delinquent taxes.
3.30.110 Sale of business – Final return – Liability of purchaser.
3.30.130 Use of proceeds of sales tax.
Article II. Regulations and Authorization
3.30.140 Regulations and authorization.
3.30.170 Remote Seller Sales Tax Code adoption and applicability.
Article I. General Provisions
3.30.010 General provision.
The tax document included in this chapter lists definitions, tax schedules, penalties, exemptions, and use of revenue generated. [Ord. 88-09-022 § 2].
3.30.020 Definitions.
(a) “Buyer or consumer” means and includes without limitation any individual, receiver, assignee, firm, company, business, association, society, or any group of individuals acting as a unit whether mutual, cooperative, fraternal, nonprofit or otherwise who will use an item purchased with no immediate intention of reselling it.
(b) “Retail sale” means and includes any nonexempt sale of services, rentals, or tangible personal property for any purpose other than resale in the regular course of business and the point of delivery of the same is within the City of Saxman.
(c) “Sales tax” means and includes the tax herein levied on gross revenues derived from all taxable commercial retail sales, services, and rentals, revenues being computed in dollars and cents and the tax payable by the seller, the person performing the services or the person receiving gross revenues from rentals.
(d) “Sales price” means and includes the consideration, whether money, credit, rights or other property expressed in terms of money, paid or delivered by a buyer to a seller.
(e) “Seller” means and includes every person making sales at retail to a buyer or consumer whether as agent, broker or principal, and the term also means and includes persons performing services for remuneration as well as persons receiving gross revenues derived from rents.
(f) “Single-unit sale” means the selling price of an item or service, which is posted, advertised, or in the normal course of business is sold by a unit of measurement (i.e., per gallon, ton, hour, day, week, month, piece, group, each, box, set, package, or other common unit of measurement).
(g) “Physical presence” means a seller who establishes any one or more of the following within the City:
(1) Has any office, distribution or sales house, warehouse, storefront or any other place of business within the boundaries of the local taxing jurisdiction;
(2) Solicits business or receiving orders through any employee, agent, salesman or other representative within the boundaries of the City or engages in activities in the City that are significantly associated with the seller’s ability to establish or maintain a market for its products in the City;
(3) Provides services or holds inventory within the City;
(4) Rents or leases property located within the boundaries of the City.
A seller that establishes a physical presence within the City in any calendar year will be deemed to have a physical presence within the City for the following calendar year. [Ord. 20-11 § 1; Ord. 88-09-022 § 2-1].
3.30.030 Duty of seller to collect.
The tax levied under the provisions of this chapter is primarily upon the buyers of said personal property, rentals or services, but the tax is payable to the Borough by the seller regardless of whether the seller has collected the same from the buyers. 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 sale, service or rental, at the time the property sold is delivered, or when the rentals are collected. Every sale which is made within the City, unless explicitly exempted by this chapter, shall be presumed to be subject to the tax imposed hereunder in any action to enforce the provisions of this chapter. [Ord. 88-09-022 § 2-2].
3.30.040 Tax added to sales price.
Sellers shall add said sales tax to the sales price, rental, or charge for services. 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. [Ord. 88-09-022 § 2-3].
3.30.050 Tax schedule.
Sellers who are required to collect a sales tax for the Ketchikan Gateway Borough, and who are required herein to collect a sales tax for the City of Saxman, shall add the tax herein imposed to the rental, sales price, or service charge in strict accordance with the following schedule. Ketchikan Gateway Borough sales tax of 2.5 percent and City of Saxman sales tax of four percent for a total of 6.5 percent.
|
Sales |
Tax |
|---|---|
|
.16 and under |
Nothing |
|
.17 through .33 |
.01 |
|
.34 through .50 |
.02 |
|
.51 through .67 |
.03 |
|
.68 through .84 |
.05 |
|
.85 through 1.00 |
.06 |
|
1.01 and over to continue along same scale. |
|
[Ord. dated 3/19/2008; Ord. 03-08-015 § 1; Ord. 88-09-022 § 2-4].
3.30.060 Unlawful for seller to fail to collect.
Any seller who wishes to include tax in the price of items may do so, but must post a sign in a prominent location in the business stating that “Tax Is Included In All Prices” and include the same words on all receipts which do not show tax as part of the selling price. If such a sign is not posted in the premises, then it shall be deemed that taxes have not been included in the receipt and tax will be computed on the total of the receipt and added for purposes of calculating tax due. [Ord. 04-2009-023; Ord. 88-09-022 § 2-5].
3.30.070 Tax to be paid quarterly.
(a) The tax levied under this chapter is due and payable at the expiration of each quarter of each calendar year. It is the duty and responsibility of every seller liable for the collection of any tax imposed in this chapter, unless otherwise provided herein, to file with the revenue collector upon forms prescribed and furnished by the revenue collector a return, prepared under oath, setting forth the amount of all sales, taxable and nontaxable, the amount of tax thereon and such other information as the revenue collector may require on such form or forms. The completed and executed return, together with remittance in full for the amount of the tax due, shall be transmitted to the revenue collector on or before the last day of the month succeeding the end of each quarter.
(b) Any person who filed or should have filed a sales tax return for the prior quarter shall file a return even though no tax may be due. This return shall show why no tax is allegedly due, or, if the business is sold, then the person to whom it was sold, the date it was sold, and the address and telephone number of the person to whom it was sold.
(c) Sellers failing to comply with the provisions of this chapter shall, if required by the revenue collector, file and transmit collected sales taxes monthly until such time that they have demonstrated to the revenue collector that they are or will be able to comply with the provisions of this chapter.
(d) Sales tax returns shall be accompanied by proof, satisfactory to the revenue collector, as to claimed exemptions or exceptions from the tax herein imposed. In the absence of the proof, the sales, rentals, or services shall be deemed to have been taxable.
(e) The burden of establishing any tax exemption is upon the claimant. The City Manager shall, from time to time, recommend to the Council procedures, regulations and forms to facilitate the proper procedure for filing and claiming exemptions. [Ord. 88-09-022 § 2-6].
3.30.080 Compensatory collection discount.
All sellers and persons rendering sales tax returns to the City and Borough shall be allowed to compensate themselves for costs incurred in the collection, recordkeeping, remittance, and accounting for the tax imposed by taking a one-half percent “tax collection discount” in the form of a deduction from the amount of tax due for any quarterly reporting period, and that such discount shall not be taken, nor permitted, whenever the tax is delinquent at the time of payment, or when there is a manifest failure on the part of the seller to maintain proper accounting records and returns of the tax due. [Ord. 88-09-022 § 2-6].
3.30.090 Duty to keep books – Investigations.
(a) Every seller shall keep and preserve suitable records of all sales made by him, and such other books or accounts as may be necessary for the revenue collector to determine the amount of tax for the collection of which he is liable hereunder. Every such person shall keep and preserve for a period of two years all invoices of goods and merchandise purchased for resale, and all such books, invoices and other records as may be necessary, all of which are open for examination at any reasonable time by the revenue collector, the City Manager, or his or their designee.
(b) For the purpose of ascertaining the correctness of a return or for the purpose of determining the amount of tax collected or which should have been collected by any person, the City Manager or his designee may hold investigations and hearings concerning any matters covered by this chapter, and may examine any relevant books, papers, records, or memoranda of any such person, and may require the attendance of such person, or any officer or employee of such person. If any person refuses to comply, the City Manager may apply to the Superior Court for an order requiring the person to comply therewith. The City Manager is authorized to make arrangements with the Ketchikan Gateway Borough, authorizing the Borough to conduct the investigations and hearings provided herein.
(c) In the event the revenue collector is unable to ascertain the tax due to be remitted by a seller by reason of the failure of the seller to keep accurate books, allow inspection, failure to file a return, or falsification of records, the revenue collector may make an estimate of the tax due based upon all of the information available. Notice of the estimate of taxes due shall be furnished by certified mail to the seller and shall become final for the purposes of determining liability of the seller to the City in 30 days unless the seller earlier files an accurate return, supported by satisfactory records, indicating a lesser liability. [Ord. 88-09-022 § 2-7].
3.30.100 Penalty and interest on delinquent taxes.
(a) In the event a seller fails or neglects to file a return when due, or fails to remit taxes collected by him or which should have been collected by him, in a timely manner as required by this chapter, then such return and tax are delinquent and the revenue collector shall add thereto penalties as follows.
|
If payment is made |
Additional penalty |
|---|---|
|
between 1 and 7 days after due date |
1% of tax due or $100.00 whichever is less with $20.00 minimum |
|
between 8 and 30 days after due date |
15% of tax due |
|
between 30 and 60 days after due date |
20% of tax due |
|
more than 60 days after due date |
25% of tax due |
(b) Interest on delinquent taxes shall accrue from the date of delinquency to the date of payment at the rate of one-half of one percent per month. All remedies available to the revenue collector to collect taxes, penalties, and interest plus collection costs shall commence 30 days after the date of delinquency. [Ord. dated 3/19/2008; Ord. 88-09-022 § 2-8].
3.30.110 Sale of business – Final return – Liability of purchaser.
If any seller sells his business to another person, he shall make a final sales tax return within five days after the date of selling the business; and his purchaser, successor, successors, or assigns shall withhold a sufficient portion of the purchase money to pay the amount of sales taxes, penalties and interest due and unpaid to the City or Borough, or both; and provided, further, the purchaser, successor, successors, or assigns are personally liable for the payment of the taxes, penalties and interest, accrued and unpaid to the City or Borough or both on account of the operation of the business by any former owner, owners, or assigns as shown by the final return or an audit conducted by the Borough within 30 days of the filing of the final return. [Ord. 88-09-022 § 2-9].
3.30.120 Exemptions.
(a) Intent. The City of Saxman desires to harmonize sales tax exemptions under the City of Saxman Code with those sales tax exemptions permitted by the Ketchikan Gateway Borough.
(b) The following sales and services are exempt from the sales tax levied by this chapter:
(1) Any sale or service exempt from the Ketchikan Gateway Borough sales tax as provided in Ketchikan Gateway Borough Code Section 4.50.230, as that section may be amended from time to time.
(2) Any sale or service required to be exempt from sales tax pursuant to Alaska law or Federal law. [Ord. 20-12 § 1].
3.30.130 Use of proceeds of sales tax.
All money accumulated under these provisions shall be deposited by the City Finance Director to the general fund of the City to be used and expended for the sole purpose of providing administrative and governmental area-wide City services and maintenance and operations of all City-owned buildings. [Ord. dated 4/27/2011 § 1; Ord. 88-09-022 § 2-11].
Article II. Regulations and Authorization
3.30.140 Regulations and authorization.
The Mayor is hereby authorized to draft and execute such documents as may be necessary to provide for the collection and transfer of revenues to the City budgets for which the revenue has been allocated. [Ord. 88-09-022 § 3].
3.30.150 Authorization.
(a) The City Manager is authorized to prescribe by regulations the forms to be used and the methods and procedures to be followed by the revenue collector in collecting the taxes.
(b) The City Manager is further authorized to make arrangements between the City and the Ketchikan Gateway Borough relating to the enforcement of the City sales tax laws and to the collection of revenues imposed by the laws, notwithstanding any duties or functions imposed upon City officials in this chapter. The City Manager is authorized to enter into agreements with the Borough from time to time modifying the arrangements.
(c) The City Manager is hereby authorized to draft and execute such documents as may be necessary to provide for the collection and transfer of revenues to the City budget for which the revenue has been allocated. [Ord. 88-09-022 § 3-1].
3.30.160 Regulation.
(a) Appeals. An aggrieved taxpayer or other person may appeal a decision of the revenue collector or City Manager by filing a written appeal with the City Council setting forth with particularity the specific facts and all supporting evidence upon which such appeal is based not later than 10 days after notice of the decision from which the appeal is taken. The decision of the City Council shall be final. [Ord. 88-09-022 § 3-2].
3.30.170 Remote Seller Sales Tax Code adoption and applicability.
(a) Adoption by Reference. The City of Saxman hereby adopts, and incorporates herein by reference, the provisions of Ketchikan Gateway Borough Code Chapter 4.75, as adopted by Ketchikan Gateway Borough Ordinance No. 1917-substitute, effective August 1, 2020, as the City of Saxman Remote Seller Sales Tax Code subject to the modifications in this section.
(1) Where that Chapter 4.75 KGBC refers to the Ketchikan Gateway Borough it shall be read as applying to the City of Saxman for purposes of collection and enforcement of the Remote Seller Sales Tax Code.
(2) In KGBC 4.75.010, Interpretation, subsection (c), the reference to Chapter 4.50 KGBC shall be read as referring to SMC 3.30.120.
(3) In KGBC 4.75.050, Imposition – Rate, subsection (b) shall be read as referring to the rates of sales tax levied in SMC 3.30.050.
(4) In KGBC 4.75.050, Imposition – Rate, subsection (d) shall be read as referring to the exemptions in SMC 3.30.120.
(5) In KGBC 4.75.270, Savings clause, the references to Chapter 4.50 KGBC shall be read as references to SMC 3.30.010 through 3.30.160.
(b) Applicability. The City of Saxman Remote Seller Sales Tax Code adopted by this section shall apply as follows:
(1) Sellers with no physical presence in the City that have remote or internet-based sales in the City are subject to the City of Saxman Remote Seller Sales Tax Code instead of SMC 3.30.030 through 3.30.120.
(2) Sellers with a physical presence in the City that have remote or internet-based sales delivered to a taxing jurisdiction in Alaska outside the City boundaries are subject to the City of Saxman Remote Seller Sales Tax Code and SMC 3.30.030 through 3.30.120.
(c) Sellers with a physical presence in the City that have remote or internet-based sales delivered within the City boundaries are subject to SMC 3.30.010 through 3.20.120. [Ord. 20-11 § 2].