Chapter 3.08
CONSUMER SALES TAX

Sections:

Article I. General

3.08.010    Levy of tax.

3.08.015    Interpretation of provisions.

3.08.020    Proceeds – Use.

3.08.030    Payment by buyer and collection by seller.

3.08.040    Seller – Liability to the City – Successor liability to the City.

3.08.050    Administration enforcement authority – Request for ruling.

Article II. Applicability

3.08.070    Applicability.

3.08.080    Place of sale, rental or service.

3.08.090    Apportionment for certain passenger transportation services.

Article III. Exemptions/Waivers

3.08.100    Exemptions.

3.08.110    Exemption for sales for resale.

3.08.120    Exemption for intermediate services and rentals.

3.08.122    Prepayment of estimated sales tax.

3.08.130    Waiver – Application for extension of time.

3.08.140    Waiver – Uncollected taxes, penalties and interest.

Article IV. Business License

3.08.150    Business license required.

3.08.160    License issuance – Display required – Compliance agreement – Bond requirements.

3.08.170    Business license nonassignable – Surrender requirements – Successor seller.

3.08.180    Business license index.

Article V. Computation

3.08.200    Addition of tax to sales price – Tax schedule.

3.08.210    Statement of tax.

3.08.220    Installment sales – Tax collected when.

Article VI. Returns/Records/Audit

3.08.250    Returns – Filing required – Filing schedule.

3.08.260    Conducting business regularly for partial year.

3.08.270    Returns – Contents.

3.08.280    Returns and sales tax – Filing and payment required by due date.

3.08.285    Application of payment.

3.08.290    Returns – Credit for costs of collection.

3.08.300    Returns – Confidentiality requirement – Exceptions.

3.08.310    Final return – Required information.

3.08.320    Records – Seller recordkeeping required – Loss of records.

3.08.330    Audit – Investigation authority – Seller’s consent to inspection of tax returns.

3.08.340    Estimate of tax due – Audit.

Article VII. Enforcement

3.08.350    Civil and criminal actions – Payment agreements – Joint bank accounts.

3.08.360    Failure to obtain business license – Civil penalty – Other remedies.

3.08.370    Failure to file returns or remit taxes – Civil penalties – Publication – Injunction.

3.08.380    Failure to keep adequate records.

3.08.390    Misuse of business license.

3.08.400    Misuse of exemption certificate.

3.08.410    Sales tax liens.

Article VIII. Definitions

3.08.430    Definitions.

Article I. General

3.08.010 Levy of tax.

There is levied and shall be collected and paid to the City a five percent consumer sales tax on all sales made, on all rentals made or performed, and on all services sold or performed within the City, unless the sale, rental or service is expressly and clearly exempted or excepted under the provisions of this chapter, State or Federal law. [Ord. 517-07 § 1, 2007; Ord. 444-02 § 1, 2002].

3.08.015 Interpretation of provisions.

The scope of the tax levied under this chapter shall be broadly construed. Exemptions and exclusions from the tax shall be narrowly construed and limited to the specific activities and transactions that expressly and clearly fall within the designations in this chapter of exempted or excluded activities or transactions.

3.08.020 Proceeds – Use.

The net proceeds from the taxes collected by the City pursuant to this chapter shall be used for general purposes relating to services, health and welfare of the City, and in administration of the City government.

3.08.030 Payment by buyer and collection by seller.

The obligation for the payment of the sales tax is upon the buyer. The seller shall collect the tax at the time of the sale or rental, and, with respect to services, the tax shall be collected upon the earlier of the sale within the City of the service or the performance of the service within the City. Except as otherwise provided in this chapter the seller shall be jointly and severally liable with the buyer to the City for all taxes the seller is required to collect, whether or not collected by the seller. [Ord. 348-97 § 2, 1997].

3.08.040 Seller – Liability to the City – Successor liability to the City.

A. All sales taxes collected or which should have been collected pursuant to this chapter are City moneys for which the seller is liable and at all times accountable to the City. All such City moneys shall be held by the seller in trust for the City in an account that is separate from other moneys of the seller.

B. Any person acquiring an ownership interest in an ongoing business or the accounts receivable of a business, whether by purchase, assignment, foreclosure, conveyance in lieu of foreclosure, relinquishment or otherwise, shall be liable for the payment of taxes, penalties and interest accruing and unpaid to the City on account of the operation of the business by the former owner, owners or assigns. Each person acquiring any interest in a business or the accounts receivable of a business shall request a statement from the City of the actual and estimated amount of current and past due taxes, penalty and interest of the business. The person acquiring the business or accounts receivable shall withhold from the acquisition price and pay over to the City the current taxes due and the past due taxes, interest and penalty.

C. The liability of a purchaser or other person acquiring a business or the accounts receivable of a business for outstanding taxes, penalties and interest accrued and unpaid by the former owner shall be limited to an amount stated in writing by the City in response to a request from the purchaser for a statement of sales tax liability.

3.08.050 Administration enforcement authority – Request for ruling.

A. The sales tax administrator shall enforce the registration licensing, reporting and the tax collection and payment requirements imposed in this chapter, including the authority to implement and make interpretations of the provisions in this chapter.

B. Any person who may be obligated to pay or collect the tax under this chapter, or any City official, may apply to the sales tax administrator for a determination on the application of this chapter to an actual fact situation. The sales tax administrator, with such review and assistance as may be requested from the City Attorney, shall provide a written interpretation of the applicability of this chapter to the fact situation described. The City shall be bound by a written determination issued under this subsection (B), but only with respect to the person to whom the interpretation is issued, and only for so long as such interpretation has not been revoked, withdrawn or modified and none of the code sections upon which the interpretation is based have been amended or repealed.

C. The sales tax administrator, after consulting with the City Attorney, may issue rules and procedures for making more definite the methods by which interstate travel is apportioned for purpose of taxation under this chapter. [Ord. 348-97 § 3, 1997].

Article II. Applicability

3.08.070 Applicability.

The tax levied under this chapter applies but is not limited to the following sales, rentals and the sale or performance of services:

A. Sale of any tangible personal property;

B. Sale or provision of natural or artificial gas, electricity, ice, steam, water, or other utility service;

C. Transportation for hire of persons, by common, charter or other carrier, including ground, marine and air transportation; provided, passenger transportation in interstate or foreign commerce and certain passenger rail transportation shall be apportioned;

D. Communication services, including transmission of voice, data, video and all other forms of information, whether local or long distance and whether by wire, fiber optic cable, radio waves or any other medium of transmission. This shall include all services and rental charges having any connection with the communication service, but not including deposits; long distance communications, whether interstate or intrastate, that originate or terminate in the City and are charged to a service address in the City are included without apportionment;

E. Printing or printed matter of all types and kinds and of any character, including the service of printing or over printing;

F. The rental or licensing of real property or an interest in real property whether in the form of rooms, living quarters, temporary lodging, offices, buildings, commercial, industrial, parking, storage, vacant or unimproved space of whatever name or nature, except that long-term residential leases shall be exempt as provided in WMC 3.08.100(A)(24);

G. The rental of any tangible personal property to another, including the rental of any equipment, vehicles, vessels, aircraft, tools and other tangible personal property;

H. The sale of maintenance agreements and extended warranties;

I. The sale of food unless otherwise exempt;

J. The sale of advertising of all kinds, types and character, contracted for or sold in the City, including any and all devices used for advertising purposes and the servicing of advertising devices;

K. The sale of plays in games of skill or chance, including punchboard, rippie and similar chances, slot machines, and bingo plays, and plays on pinball, video game and other amusement devices of any kind; free plays are taxable when used as if each had been paid for in cash by the player;

L. The sale of plays on juke boxes and the sale of any tangible personal property, services or rights through a coin operated or other vending or dispensing machine or device;

M. The sale of tickets for transportation originating or terminating in the City of Whittier or for tickets of admission to places of amusement, entertainment, athletic or recreational facilities, including the use of free or complimentary passes and tickets, admissions, dues or fees; such free or complimentary passes or tickets, dues or fees are declared to have a value equivalent to the sale price or value of said tickets, passes, admissions, fees or dues;

N. The sales of tangible personal property made for, and services performed for, the purpose of developing, improving or repairing real property, or for the manufacture, modification or repair of personal property even though such real or personal property is intended for resale, or even though the tangible personal property purchased or services performed were acquired by a person who uses the same in the performance of a contract;

O. The sale or performance of services of dry cleaners, laundries, garages, barber and beauty shops, cold storage and locker plants;

P. The sale or performance of services by professionals such as accountants, consultants, physical therapists, real estate and insurance sales persons and attorneys, by artist and craft persons such as painters and cabinetmakers, by skilled and apprentice tradespeople such as electricians, carpenters, plumbers and welders, and by other persons performing services of any nature for another for compensation. All other services performed or sold not specifically exempted or excluded under WMC 3.08.100 through 3.08.120;

Q. The payment of commissions to brokers, agents, sales persons or others, whether or not the commission is earned on the sale of property, services or rights that are exempt from the tax levied under this chapter;

R. Sales where the order for goods is received or forwarded to a catalog, mail order or other seller outside the City by an agent, employee or other person within the City acting on behalf of or in association with the seller who is outside the City and the goods are delivered to the buyer in the City by any means. The person within the City who receives or forwards the order shall be the seller for purposes of this chapter and shall collect the sales tax due no later than upon delivery of the goods. However, if payment for the goods is made by the buyer directly or by credit card to the seller outside the City and such seller collects the tax due and timely remits the tax to the City, the person within the City who is the seller is relieved of their responsibilities under this chapter to the extent that such responsibilities are met by the seller outside the City.

S. The sales, rentals and services set out in this section do not constitute an exclusive list of the transactions and activities subject to the tax levied under this chapter, but are illustrative only and shall not be interpreted in any manner to limit the scope or application of tax levied under this chapter. [Ord. 10-2013 § 2, 2013; Ord. 517-07 § 3, 2007; Ord. 348-97 §§ 4, 5, 1997].

3.08.080 Place of sale, rental or service.

A. A taxable sale of tangible or intangible property occurs if any significant element of the making or performance of the sale agreement occurs within the City during the tax year, including, but not limited to, the offer to sell or buy and its receipt, the acceptance of the offer or the agreement to buy or sell, the delivery of any part of the property, and the payment or partial payment for the property.

B. A taxable rental occurs if any significant element of the making or performance of the rental agreement occurs within the City during the tax year, including, but not limited to, the completion of the execution of the rental agreement, the making of an oral rental agreement, the delivery of the fully executed rental agreement, the transfer or relinquishment of possession of the rented space or property to the lessee or renter, the possession or use of the rented space or property regardless of when the rental agreement was made or the use or possession of the space or property began and shall be taxable for the portion of the rental period that occurs during the tax year.

C. A taxable sale or performance of a service occurs when any significant element of the sale or performance of the service occurs within the City during the tax year, including the offer and acceptance, the delivery to the purchaser or to the person who is to provide a service of a ticket, coupon or other instrument entitling a holder to a service, the commencement of the performance of a service, the completion of the performance of a service, and the performance of any part of a service. The sale within the City of a service is taxable without regard to where the service is or is to be performed. Except as provided in WMC 3.08.090, the entire value of an unsegregated service is taxable if any part of the service is performed within the City during the tax year. The performance of a service is not taxable if the tax under this chapter was paid on the sale of the service. If a service sold outside the City is to be performed in part or in whole inside the City, the person providing the service is the seller under this chapter and shall be liable for the collection and remittance of the tax. [Ord. 348-97 §§ 6, 7, 1997].

3.08.090 Apportionment for certain passenger transportation services.

A. For purposes of WMC 3.08.100(A), passenger transportation services provided within the City that are a part of interstate or foreign travel shall include all services provided to the passenger while underway in interstate or foreign travel and all shuttle services, food, lodging and other services that were necessary for the completion of the interstate or foreign travel. Local adventures, sight seeing or other tours, side trips and similar activities that are not a necessary part of traveling from one point to another point in the interstate or foreign travel route are not a part of interstate or foreign travel.

B. One-half the cost or value of passenger transportation services provided by a private entity, and not part of interstate or foreign travel under subsection (A) of this section, that are sold outside the City for transportation that originates or terminates in Whittier and terminates or originates within another organized Alaska municipality shall be apportioned to the City of Whittier for the purpose of taxation under this chapter.

C. The sale within the City of passenger or vehicle transportation services on a publicly owned railroad is a sale occurring entirely within the City and the entire price of the sale is taxable. Passenger and vehicle transportation services sold outside the City for transportation into or out of the City shall be apportioned based upon the cost of such service between Portage and Whittier multiplied by the ratio of the length of the railroad track ordinarily traveled within the City to the length of the track between the ordinary points in travel between Portage and Whittier. Such ratio shall be as mutually agreed in writing between the City and the railroad or by actual measurement if such agreement cannot be reached.

D. Tours, travel, guiding, drop-off and pick-up, charters, and other commercial services involving the movement of individuals by any conveyance whether designated for the purpose of, by way of example only, sight seeing, whale, bird, glacier or animal watching, dinner, adventure, fishing, camping, or for any other purpose involving transportation of individuals which originate and ultimately terminate within the City without terminating in another organized municipality before the passenger returns to the City are not apportionable for any part of the time spent outside the City after the origination of the trip inside the City. The cost of a tour package that includes transportation into the City before the commencement of a tour that originates and terminates in the City and includes transportation out of the City following termination of the tour in the City shall be allocated so that the cost or value of the tour that originates and terminates within the City is taxed at its full cost or value. The preceding and following transportation into and out of the City may be apportioned, if qualified, under subsection (B) of this section. [Ord. 454-03 § 1, 2003; Ord. 348-97 § 8, 1997].

Article III. Exemptions/Waivers

3.08.100 Exemptions.

A. The following classes of sales, services and rentals are exempt from the tax levied under this chapter:

1. Casual and isolated sales or rentals by a seller who does not regularly engage in the business of selling such goods or services, or making rentals; but only if the sale of goods or services or the rental does not occur for more than 10 days in a calendar year, and are not made through a dealer, broker, agent or consignee; the sale of fireworks is not a casual or isolated sale regardless of the duration, time, frequency or volume of such sales;

2. Hospital services and medical services performed by licensed medical doctors, dentists, osteopaths, optometrists, chiropractors, State licensed nurses, State licensed physician assistants, speech and hearing pathologists, State licensed psychologists, psychological associates, and licensed clinical social workers; physical therapists, when providing services prescribed by one of the foregoing, and retail sales of medicinal preparations, drugs or appliances for which a written prescription is required from one of the foregoing;

3. Subscriptions to newspapers and periodicals;

4. Dues or membership fees to nonprofit organization;

5. Sales of animal food, seed, plants and fertilizers to farmers using such commodities to produce goods for sale;

6. Sales of real property;

7. Sales, rents or services which the City is prohibited from taxing by the Constitution or laws of the United States or of the State of Alaska;

8. Services performed by morticians licensed under Alaska law;

9. Tuition and fees paid to nonprofit schools for educational services or paid to schools or student organizations within the schools for extracurricular activities or events;

10. Financial service transactions relating to the sale or exchange of currency or securities, transactions for conversion of negotiable instruments;

11. Interstate freight hauling services;

12. Premiums on insurance and bonds of guaranty and fidelity, but not including commissions on premiums;

13. Sale of foods purchased with coupons issued under the Federal food stamp program;

14. Retail sales of food:

a. When served in cafeterias or lunchrooms of elementary, secondary, post-secondary schools which are operated primarily for students and staff, and are not operated for the public or for profit;

b. When served to clients and staff, and not to the public or for profit, as part of services provided by a nonprofit or government organization licensed by the State of Alaska for the care of humans;

c. When delivered by a nonprofit organization to handicapped or senior citizens at their place of residence; or meals served on the premises of a nonprofit organization to senior citizens which receives funding from the State of Alaska or a political subdivision of the State; provided, that the sale price of such meals does not exceed the cost of delivery or service of such meals; and

d. Food sold for domestic home consumption;

15. A rental or other agreement for occupancy of 90 days or less for residential real property pending the closing of the sale of the property;

16. The portion of passenger transportation services and vehicle transportation services apportioned under WMC 3.08.090(A), (B) or (C) that are not apportioned to the City;

17. Passenger transportation service provided to a passenger by a passenger transportation business that has elected to be subject to Chapter 3.10 WMC whose election has been accepted by the City;

18. The provision of passenger transportation services on a railroad when:

a. The passenger does not pay the railroad directly for the rail passenger transportation service,

b. The passenger is a part of a tour or transportation group that has been transported to Portage by a passenger transportation business that has elected and been accepted by the City to be subject to Chapter 3.10 WMC,

c. The rail fare for the passenger will be paid by the passenger transportation business directly to the railroad at Portage, and

d. The passenger transportation business displays to the railroad agent at Portage at the time of payment for the passenger’s rail transportation an original certificate issued to the business under WMC 3.10.080.

The sale or provision of vehicle transportation by rail in connection with passenger transportation services that are exempt under this subsection (A)(18) are not exempt from the sales tax levied under this chapter but may be subject to apportionment under other provisions of this chapter;

19. Condominium fees on residential properties;

20. The performance of services covered by an exemption certificate for which a prepayment of estimated taxes has been made pursuant to WMC 3.08.122;

21. The provision of tour and passenger transportation services provided within the City of Whittier during calendar year 1997, but which were sold prior to April 1, 1997;

22. Passenger transportation services provided within the City that are a part of interstate or foreign travel when no part of the sale of such services occurs within the City of Whittier. Local services provided in connection with interstate or foreign travel, as described in WMC 3.08.090, are not exempt;

23. Cruise passenger transportation services provided on an overnight cruise vessel as part of a cruise scheduled to be at least 72 hours in duration and in which at least one night is spent outside of the jurisdictional waters of Whittier when no part of the sale of such services occurs within the City of Whittier. This subsection does not exempt local services, as described in WMC 3.08.090(A), provided in connection with cruise passenger transportation services that are exempt under this subsection;

24. All rentals of residential property for a term of 90 days or more evidenced by a written lease agreement with a term exceeding 90 days.

B. Sales, service and rentals to the following classes of buyers are exempt from the taxes levied under this chapter:

1. An organization that has obtained a 501(c) exemption ruling from the Internal Revenue Service, as long as proof of such exemption is provided to the City administration and an exemption certificate issued by the City is displayed to the seller at the time of sale;

2. A church that is organized as a nonprofit corporation under the laws of the State of Alaska, as long as proof of such incorporation is provided to the City administration and an exemption certificate issued by the City is displayed to the seller at the time of sale;

3. The United States, the State of Alaska, or any instrumentality or political subdivision of either.

C. Sales, rentals and services by the following classes of sellers are exempt from the provisions of this chapter:

1. An organization that has obtained a 501(c) exemption ruling from the Internal Revenue Service, as long as proof of such ruling is provided to the City administration prior to the sale, rental or service, but only when:

a. The sales are not liquor sales,

b. The sales are not sales of food sold through regularly conducted restaurant type operations, and

c. Gaming sales are not made by third party vendors or other persons operating a gaming permit held by the 501(c) organization;

2. Groups sponsored by public or nonprofit schools;

3. Churches, except when such organization is engaged in business for profit or is competing with other persons engaged in the same or similar business.

D. Any portion of a single sale of goods or services in excess of $5,000 when such sale occurs to any individual or organization on a single date. [Ord. 10-2013 § 3, 2013; Ord. 517-07 § 4, 2007; Ord. 491-05 § 2, 2005; Ord. 469-03 § 2, 2003; Ord. 454-03 § 2, 2003; Ord. 377-98 § 2, 1998; Ord. 371-98 § 2, 1998; Ord. 357-97 § 2, 1997; Ord. 348-97 § 9, 1997].

3.08.110 Exemption for sales for resale.

The following sales of tangible personal property are exempt under this chapter:

A. Sales to a wholesale or retail seller of property sold for the purpose of resale in the same form by the person purchasing the property for resale is exempt from the tax under this chapter if the property is held for resale within the City in a taxable transaction.

3.08.120 Exemption for intermediate services and rentals.

The following sales of services and rentals are exempt under this chapter:

A. Where personal property is rented from a dealer in a taxable transaction and the renter is then directly reimbursed by a third party for the exact rental expense, without markup, then that reimbursement is not a rental or lease subject to the City sales tax;

B. Services rendered by an employee to his/her employer.

3.08.122 Prepayment of estimated sales tax.

A. A taxpayer who is a contractor and who will be obligated to pay the sales tax under this chapter on services performed by subcontractors may apply for a sales tax prepayment certificate under the conditions of this section if the contractor is the prime contractor on a contract with a government agency that is exempt from the payment of the sales tax under this chapter.

B. The application containing the information required under this section and such additional information as the City may require must be submitted to the City Manager and must be accompanied by a nonrefundable application fee equal to 0.01 percent of the prime contract amount, but not exceeding a fee of $1,000.

C. Each application must contain: a copy of the executed contract with the governmental agency for which the contractor will be purchasing subcontractor services and either the material set out in subsection (C)(1) of this section or the material set out in subsections (C)(2) through (6) of this section, or a combination of some materials from both.

1. Estimates based on industry standards, industry experience, and estimates of time, place, and value of subcontract work; provided, if such estimates and information are submitted, the Manager shall attempt to discuss the estimates and information with the contracting agency and its supervising engineer for the project or shall consult with a third party engineer, contractor or other person with experience in type of project involved.

2. A copy of executed subcontracts.

3. An affidavit or sworn statement that:

a. The total of its subcontracts for services qualifying under subsection (C)(4) of this section, including unexecuted subcontracts, will exceed a sum of $2,000,000, and

b. The services to be performed by the subcontractors will be provided in Whittier over a period of at least 12 months.

4. An affidavit or sworn statement that the subcontracts are for services to be performed:

a. In part within the City, and in part, outside the City, or

b. In part during a tax year and, in part, outside a tax year, or

c. Both subsections (C)(4)(a) and (b) of this section.

Subcontracts to be performed entirely within the City during a tax year and subcontracts made or executed in Whittier are fully taxable and may not be included for purposes of this section.

5. A schedule of work for the prime contract.

6. A schedule of subcontractor work broken down to show:

a. The subcontract or subcontractor, including all additional tiers of subcontracts and subcontractors;

b. The type or types of work to be performed under each subcontract;

c. An estimate of the value and the volume of person-days involved for all work to be performed within the City;

d. Of the work set out under subsection (C)(6)(c) of this section, the amount to be performed during each tax year, broken down as under subsection (C)(6)(c) of this section.

D. The Manager may require additional information. The Manager shall review the materials submitted and determine the estimated value of the subcontract work that would be subject to the sales tax if such work were performed under a segregated contract. A segregated contract is a contract under which the value of the services performed within the City during a tax year may be accurately determined under the bona fide payment, pricing and performance terms of the contract that requires or allows segregation, measurement and pricing of services performed within the City during a tax year. The Manager may investigate relevant matters and may consult with others in the process of determining the estimated value of the segregated subcontract work that would be subject to the sales tax. The estimate of value shall be conservative and shall include all work subcontracted by each subcontractor. Upon a determination of the estimated value, the Manager may increase the estimate by such amount as the Manager believes is appropriate taking into account the estimated time for performance of the prime contract and the subcontracts, the accuracy, reliability and certainty of estimates and other factors that may affect the accuracy of the estimated value. The result is the basis for computing the estimated sales tax liability. If the subcontract services to be provided to the contractor extend over more than two tax years, the Manager shall allocate the total estimate among the tax years involved.

E. Upon a determination of the basis and allocation among tax years, the Manager shall present the basis, its computation and its allocation among tax years to the taxpayer and to the City Council at the next Council meeting held at least five days after the date the basis is mailed or transmitted by facsimile to the taxpayer. The Manager’s basis determination and allocation shall be used as the basis for the grant of a sales tax prepayment certificate unless the Council, by four affirmative votes, disapproves the estimate, or by four affirmative votes approves an amended amount, at the meeting at which the basis is presented. If the Council disapproves the estimate without approving a different amount, a sales tax prepayment certificate may not be issued. If the Council approves an amount different from the Manager’s estimate, the amount approved by the Council shall be the basis for the issuance of the sales tax prepayment certificate; the Manager shall reallocate the amended basis amount among the tax years if the Council does not do so in connection with its action to approve the amended amount.

F. The Manager shall compute the estimated sales tax liability by multiplying the appropriate basis by the sales tax rate in effect for each tax year. The sales tax shall be allocated to the different tax years in same proportion as the basis is allocated when subcontractor work will occur over a period of two or more tax years. The Manager shall notify the contractor in writing of the final basis and the estimated sales tax due for each tax year over which subcontractor work is to be performed. The contractor shall be issued a sales tax prepayment certificate upon payment of the full amount of estimated taxes due for the first tax year covered by the basis determination. The payment must be transmitted to the City within 20 business days of the date of the written notice from the Manager.

G. A certificate shall be issued for each tax year for which payment is received. If the first payment made is for less than all of the tax years covered by the basis determination, the certificate shall be issued only for the tax years for which full payment is received. Payment for any tax year not covered by an issued certificate must be transmitted to the City on or before the fifteenth business day of January of the calendar year in which the tax year to be covered by the subsequent certificate occurs. Interest at the rate of 12 percent per annum shall be due on payments not transmitted as required under this section. A penalty of 20 percent of the amount due for the tax year is imposed and shall be paid if payment is not transmitted, with all interest due, before the first day of the tax year. A contractor whose timely payment for the first tax year includes full payment of the estimated tax liability for one or more subsequent tax years in the order of their occurrence may deduct two percent of the estimated liability for the second tax year, plus four percent of the estimated tax liability for the third tax year, and similarly, an additional two percent more for each additional tax year for which the estimated tax liability payment is made with the payment for the first tax year. A contractor whose timely payment for the first year includes the full payment for all subsequent tax years and who does not take any of the deductions authorized in the preceding sentence shall be exempt from the adjustment provisions of subsections (I) and (J) of this section.

H. During the tax year covered by a certificate issued under this section, the contractor to whom issued is exempt from the payment of the sales tax on services performed for the contractor under a subcontract for services described in subsection (C)(4) of this section that are necessary for the performance of the contractor under the prime contract. Services performed by second and subsequent tier subcontractors are similarly exempt from the sales tax. Subcontractors performing services exempted under this subsection are exempt from the filing requirements of this code with respect to the exempt services, but are not exempt from the business license requirement of this code.

I. If the sales tax rate, the length of the tax year or the location of the City limits change during the period of time for which the estimated sales tax was computed, the City Manager shall reexamine the materials submitted with the application and shall be provided with such additional information as may be requested from the contractor and any subcontractor. The Manager shall make a new estimate of the value of services performed within the City if the tax year or the City limits were changed and shall recompute the estimated tax liability using the appropriate basis if the tax rate was changed. The redetermination of the basis and recomputation of the estimated tax liability shall be made for the period of time commencing with the change that requires the redetermination or recomputation by the Manager. The Manager shall compute the difference between the recomputated estimated tax liability for the period following the change and the estimated tax liability for the same period as if the change had not occurred. If only a change in tax rate during a tax year is involved, the Manager shall allocate the basis for that tax year on a pro rata time basis and shall compute the prior and new estimated tax liability for the period affected by the change in rate. No referral to the Council is required before implementation of the requirement for payment of the difference in estimated sales tax liability that results solely from a change in the tax rate. If the change involved a change in the tax year or City limits, the redetermination of the basis for the remaining tax periods shall be presented to the taxpayer and to the City Council in the same manner as the Manager’s determination of the original basis is required to be presented under subsection (E) of this section. The authority of the Council with respect to the redetermined bases and the effect of Council action shall be as provided in subsection (E) of this section.

J. Following the Council meeting at which the predetermined bases were presented, the Manager shall notify the contractor of the redetermined bases for the current and each remaining tax year and the difference in the recomputed estimated tax liability for the current and each remaining tax year. The current tax year is included if it is the tax year during which a change occurred. The contractor shall transmit to the City the difference in estimated tax liability for each tax year for which the contractor has prepaid the taxes. Such payment must be transmitted to the City within 20 business days of the date of the notice of the redetermined bases and recalculated estimated tax liability. All estimated tax liability payments for tax years that have not yet been made shall be increased by the amount of the estimated tax liability difference and shall be transmitted to the City subject to interest and penalty as required for the originally computed payment. If payment required under this subsection is not transmitted as required, a certificate issued for a tax year affected by a redetermination of the basis or a recomputation of the estimated tax liability is suspended and ineffective from the date payment must be transmitted until full payment of the amount due, including interest and penalty, is received.

K.1. Upon receipt of the prepayment of estimated sales tax for one or more tax years, the City shall issue to the contractor a sales tax prepayment certificate for such tax years. The certificate shall state the name of the contractor to whom issued, a description of the project or work to which the certificate applies, the tax year or years during which it applies, a statement setting out the substance of the conditions of subsections (H) and (K)(2) of this section, whether the tax liability amount is subject to adjustment and such other information, statements or conditions as the Manager determines to be appropriate for all certificates or for a particular certificate.

2. Upon the payment of the estimated tax due for the first tax year, without regard to interest or penalties that may be due, the contractor becomes absolutely liable for the prepayment of the estimated sales tax allocated to each other tax year covered by the basis determination. Acceptance or use of the certificate constitutes the irrevocable promise of the contractor, for itself and its successors in interest, to pay the prepaid tax amount as required under this section for each year for which payment has not been made.

L. Notwithstanding any other provision of this section establishing consequences or rights arising out of a computation of estimated tax liability or any prepayment of estimated tax liability, the estimated tax liability of a contractor shall be adjusted under the conditions set out in this subsection. The adjustments under this subsection shall be made at any time the City determines that a single change order, amendment or other change in the contract results in an increase in the contract amount equal to more than 10 percent of the original prime contract price or when the City determines the sum of all change orders, amendments and other changes to the contract totals more than 20 percent of the original prime contract. The price of the original prime contract is the price used to make the original determination of the estimated value of the work that would be subject to the City’s sales tax. The increase in the value of the work subject to the sales tax shall be computed by multiplying the cost or value of the change orders involved by the percentage determined by dividing the original determination of the estimated value or cost of the work that would be subject to the sales tax by the original cost of the prime contract. The value or cost so determined shall be the basis for the computation of the additional sales tax liability. If appropriate, the value determined under this subsection, or the tax liability, may be apportioned amount the tax years remaining under the project. The increase in the tax liability apportioned to the current tax year, if any, and to any following tax year for which the estimated tax liability has previously been paid, shall be paid by the contractor and shall be transmitted to the City within 20 business days of the date of notice to the contractor of the additional tax liability. All other payments of additional liability determined under this section shall be paid with, and as a part of, the estimated tax liability for the tax year involved. [Ord. 371-98 § 3, 1998].

3.08.130 Waiver – Application for extension of time.

A. The sales tax administrator may grant extensions on any time limitation described in this chapter upon application filed on or before the date specified as the original time limitation; provided, that:

1. Such an extension is a dire necessity for bookkeeping reasons and would avert undue hardship upon such person or firm;

2. Such person or firm is not delinquent in any payment of tax or filing of returns or otherwise in violation of this chapter;

3. The extension is not for more than seven days.

B. The Council shall have no authority to grant any extension of time or waiver of any provision of this chapter or any regulations adopted pursuant to this chapter, but may amend the provisions of this chapter by ordinance.

3.08.140 Waiver – Uncollected taxes, penalties and interest.

A. The sales tax administrator may forgive the payment of sales taxes uncollected by a seller, plus interest and penalty thereon, and penalties for failure to file owing by a seller to the City upon a determination by the sales tax administrator that such uncollected sales taxes:

1. Have never been collected by a substantial portion of a clearly definable class of seller; or

2. Have never been collected on a substantial portion of a clearly defined class or type of transaction or service; or

3. Where an interpretation is affirmatively provided by the City to an inquiring seller, and the seller in reasonable reliance upon that interpretation fails to collect a sales tax, which collection is later determined to have been legally required under this chapter.

B. The sales tax administrator shall notify the Council in writing of any such incidence of forgiveness which shall be final unless otherwise determined by the Council within 30 days of such forgiveness.

Article IV. Business License

3.08.150 Business license required.

All sellers shall file with the City an application for a business license on a form provided by the City, prior to commencing business, or the opening of an additional place of business. Each business shall be licensed under the advertised name of the business, and each separate place of business shall be licensed under its own separate account. The application shall include the name, position held and address of each person within the business with authority to draw on the funds of the seller and shall contain additional data as the sales tax administrator may require.

3.08.160 License issuance – Display required – Compliance agreement – Bond requirements.

A. Upon receipt of a properly executed application indicating that all returns required to have been filed pursuant to this chapter by the applicant as seller or agent of any seller have been filed, and that all sales taxes required to have been remitted to the City have been paid, the sales tax administrator will issue a business license for the fee of $25.00. This license shall state the physical and mailing address of the place of business to which it is applicable, the applicable City and State of Alaska business license number and shall authorize the seller to collect the tax.

B. The certificate must be prominently displayed at the place of business named in the certificate. A seller who has no regular place of business shall attach such license to his/her stand, truck or other merchandising device.

C. Where the application or City records indicate that applicant is currently in violation of filing and remittance requirements of the City sales tax provisions, the sales tax administrator may deny the application for a business license until such time as applicant enters a binding agreement setting out a method by which full compliance will be attained.

D. Before issuing a business license to a business that was delinquent in the payment or filing of a return two or more times during the preceding calendar year, the sales tax administrator may require an applicant to post a cash or other bond with the City in an amount sufficient to insure the full and prompt collection and payment of sales taxes during the next four quarters. The bond is forfeited upon the failure to timely file one sales tax return or to timely make full payment of taxes collected; however, the forfeiture of the bond does not discharge the obligation of the seller to pay the taxes due to the City and the City reserves the right to collect any and all delinquent amounts, interest and penalties owed by the applicant.

E. Upon payment of the fee of $10.00, the sales tax administrator will issue a duplicate business license to any seller whose license has been lost or destroyed.

3.08.170 Business license nonassignable – Surrender requirements – Successor seller.

The business license is nonassignable and nontransferable and must be surrendered to the sales tax administrator by the seller to whom it was issued upon his ceasing to do business within the City. If there is a change in the form of organization such as from a single proprietorship to a partnership or a corporation, the admission or withdrawal of a general partner, or a change in seller’s agent for service, the seller making such change shall surrender his old license to the sales tax administrator for cancellation. The successor seller shall file a new application for a business license. Upon receipt of such application, properly executed, as provided in this chapter, a new business license will be issued to such successor seller.

3.08.180 Business license index.

The sales tax administrator or his/her designee shall maintain in a public place within the City administration building a current index alphabetized by name of business and name of owner, updated not less than monthly, of all current business licenses for public inspection. Applications for a business license are public records available for public inspection.

Article V. Computation

3.08.200 Addition of tax to sales price – Tax schedule.

A. The tax to be added to the sale price, charge or rental shall be five percent of the sales price, charge or rental rounded to the nearest cent by eliminating any fraction of less than one-half cent and by increasing any fraction of one-half cent or more to the next highest cent; provided, when the sale price is computed mechanically by a delivery device such as a full dispensing pump, the tax may be computed by the device and rounding not applied. Each seller shall be furnished the schedule of tax payable on each taxable amount from $0.01 to $100.00. Any one sale of items separately priced shall be taxed upon the aggregate amount.

B. The sale price of goods, services, or rights sold through coin operated machines shall be computed as though the total amount deposited included the tax without rounding and the tax may be computed based on gross revenues rather than on individual sales. [Ord. 517-07 § 1, 2007; Ord. 444-02 § 1, 2002].

3.08.210 Statement of tax.

A. The seller shall, whenever feasible, separately state the tax to the buyer on the receipt or invoice of each taxable transaction. When not feasible to state separately, the seller shall prominently display a sign or notice indicating the imposition of the tax or the inclusion of the tax in the price.

B. A seller shall not advertise, hold out or state to the public or to any buyer, directly or indirectly, that the tax payment or any part thereof imposed by this chapter will be assumed or absorbed by the seller, or that it will not be added to the sales price or that it will be refunded or assumed, in whole or in part.

3.08.220 Installment sales – Tax collected when.

When a sale is made on a credit or an installment basis, the sales tax shall be collected at the time of the sale.

Article VI. Returns/Records/Audit

3.08.250 Returns – Filing required – Filing schedule.

A. Every seller shall file a sales tax return, on forms furnished by the City, according to the filing schedule established by the City for that seller for each period that falls between April 1st and October 1st, whether or not any sale was made.

B. All sellers shall file sales tax returns on a quarterly basis, except as follows:

1. When the seller is delinquent with the City, returns shall be filed monthly, until all delinquencies are cured, and for not less than the next six months thereafter that fall within a tax year.

2. A seller with a delinquent account, which includes a balance due of over $25.00 or a missed filing, who fails to cure the delinquency within 15 days of the date of a notice of delinquency sent by regular mail, shall file on a monthly basis.

C. Where a new business license is issued because of a change in the form of the seller’s organization, or a change in the seller’s business name that does not substantially change the ownership interests, the seller shall continue to file on the same schedule as applied to the prior business until required or permitted to file on a different schedule by the City.

D. A seller on a weekly schedule may apply in writing at any time to the City for a change in the filing schedule. The City may consider the seller’s sales tax return filing history in making a determination on the application, but no change may be approved unless the seller has substantially complied with this chapter for the previous six months that fall within the tax year. [Ord. 15-2014 § 2, 2014; Ord. 568-11 § 2, 2011; Ord. 532-08 § 2, 2008; Ord. 348-97 § 10, 1997].

3.08.260 Conducting business regularly for partial year.

A seller who conducts business within the City on a regular basis for part of a tax year only need not file a tax return under this chapter with respect to any scheduled reporting period during which the business is not conducted except the first scheduled reporting period during the tax year during which no sales were made following any reporting period during which sales were made. A taxpayer who anticipates not conducting business within the City during the tax year for one or more scheduled reporting periods shall so notify the sales tax administrator in writing, stating the date which the business intends to cease business within the City for the current year and the date on which the business intends to resume such business during the tax year or all penalties will apply.

3.08.270 Returns – Contents.

Every seller required by this chapter to collect sales tax shall file with the City upon forms furnished by the City a return setting forth the following information with total sales rounded to the nearest dollar:

A. Gross sales;

B. The nontaxable portions separately stating the amount of sales revenue attributable to each class of exemption or exception;

C. Computation of taxes to be remitted;

D. Sworn statement of the owner or agent stating that all the information on the return is true and accurate;

E. Such other relevant information as may be required by the sales tax administrator.

3.08.280 Returns and sales tax – Filing and payment required by due date.

A. Taxes collected or which should have been collected by a seller hereunder are due shall be paid to the City at the expiration of the reporting period established for that seller.

B. The completed return, together with remittance in full for the amount of tax due, must be transmitted to the City on or before the last business day of the month following the period for which the tax is due (i.e., the April-June reporting period is due the last business day of July).

C. A transmittal of taxes made by mail shall not be considered delinquent if the postmark applied by the post office on the envelope clearly indicates the date of mailing to be on or before the day the taxes are to be transmitted to the City. If no postmark is applied by the post office, or if the date in the post office-applied postmark is not readable, the taxes and filing will be treated as having been transmitted on the day actually received by the City. [Ord. 28-2015 § 2, 2015; Ord. 15-2014 § 3, 2014; Ord. 568-11 § 2, 2011; Ord. 532-08 § 2, 2008; Ord. 348-97 § 11, 1997].

3.08.285 Application of payment.

Payments received by the City under this chapter from a seller shall be applied in the following order to amounts due the City by the seller under this chapter:

A. Audit fees due pursuant to WMC 3.08.340.

B. Penalties beginning with the oldest penalty.

C. Interest.

D. Taxes due beginning with the taxes due for the longest time.

3.08.290 Returns – Credit for costs of collection.

A. If a return is filed and tax payments are remitted by the filing deadline, a seller in full compliance with this chapter may retain three percent of the tax collected, to a maximum of $100.00 per month, to cover the costs of collecting the tax.

B. If the seller is not in full compliance with this chapter, or the seller files or pays under an extension of time granted by the sales tax administrator; the seller is not eligible for and may not retain the three percent credit.

C. Full compliance for the purposes of this section means that a seller does not have an account with a balance due, does not have a missing or incomplete return outstanding and is making a timely filing with full payment for the period for which the return is due.

3.08.300 Returns – Confidentiality requirement – Exceptions.

A. Returns which include remittance in full of all sales taxes due and which are timely and properly filed with the City for the purposes of complying with the terms of this chapter and all data obtained from such returns are confidential, and such returns and data obtained therefrom shall be kept from inspection by all private persons. Nothing contained in this section shall be construed to prohibit the audit and investigation by the City of any return filed under this chapter or of the books and records of any seller required to file any return under this chapter.

B. Nothing contained in this section shall be construed to prohibit the delivery to a person, or his duly authorized representative, of a copy of any return or report filed by him, nor to prohibit the publication of statistics so classified as to prevent the identification of particular buyers or sellers, nor to prohibit the furnishing of information on a reciprocal basis to other agencies or political subdivisions of the State or the United States concerned with the enforcement of tax laws.

C. Nothing contained in this section shall be construed to prohibit the disclosure through enforcement action proceedings or by public inspection or publication of the name, estimated balance due, and current status of payments, and filings of any seller or agent of any seller required to collect sales taxes or file returns under this chapter, who fails to file a return or who fails to remit in full all sales taxes due by the date required under WMC 3.08.290. Entry into any agreement whether pursuant to the provisions of this chapter or otherwise shall not act as any prohibition to disclosure of the records of that seller as otherwise provided in this chapter.

D. A prospective lessee or purchaser of any business or business interest may inquire as the obligation or tax status of any business upon presenting to the sales tax administrator a release of tax information request signed by the registered owner of the business.

E. Notwithstanding any other provision of this section, the City may disclose any information, data or records of a seller that are in the possession of the City in any civil or criminal action brought by the City in the enforcement of any provision of this title.

3.08.310 Final return – Required information.

Fifteen days prior to the sale, lease, or other disposition, or change in ownership interest, other than a transfer of outstanding shares of stock, or upon incorporation of any business licensed pursuant to this chapter, the business seller shall file a notice with the City together with an informational return identifying the name and address of each person or entity involved in the change, the nature of the change and the effective date of the change.

3.08.320 Records – Seller recordkeeping required – Loss of records.

A. Every seller engaged in activity subject to this chapter shall keep and preserve suitable records of all sales made and such other books or accounts as may be necessary to determine the amount of tax the seller is obligated to collect. Every seller shall preserve suitable records of sales for a period of six years from the date of the return reporting such sales, and shall preserve for a period of six years all invoices of goods and merchandise purchased for resale, and all such other books, invoices and records as may be necessary to accurately determine the amount of taxes which the seller was obliged to collect under this chapter.

B. A seller shall immediately notify the City of any fire, theft or other casualty which prevents compliance with this chapter. The casualty constitutes a defense to any penalty provided in this chapter if determined to be the proximate cause of the failure to comply for a given reporting period, but does not excuse the seller from liability for taxes due. Accidental loss of funds or records is not a defense against the liability for taxes required to be collected, interest and penalties under this chapter.

3.08.330 Audit – Investigation authority – Seller’s consent to inspection of tax returns.

A. 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 seller, the sales tax administrator may hold investigations and hearings concerning any matters or memoranda of any seller, may require the attendance of any seller or buyer, or any officer or employee of a seller or buyer at the hearing, and may require production of all relevant business records.

B. A seller required to register for sales tax collection under this chapter consents to the inspection of the seller’s Federal income tax returns in order to facilitate the accomplishment of the provisions and objectives of this chapter.

3.08.340 Estimate of tax due – Audit.

In the event that the City is unable to ascertain the amount of tax due from a seller because the seller has failed to keep accurate records, to allow inspection of records, has failed to file a return or has falsified records, then the City shall estimate the tax due based upon any information available to it. The estimate, including interest and penalties due to the date of the estimate, shall become final for the purpose of determining liability of the seller 30 calendar days from the date the City mails notice of the estimate to the seller unless the seller earlier files an accurate, auditable return indicating a lesser liability or unless a greater liability is shown upon audit. If the City audits a seller following the filing of an estimate under this section by the City, and the audit shows that more tax is due than was set out in the City’s estimate, the seller shall be liable for an audit fee equal to the cost to the City of the audit, in addition to any other penalties or fees due under this chapter.

Article VII. Enforcement

3.08.350 Civil and criminal actions – Payment agreements – Joint bank accounts.

A. Nothing in this chapter shall be construed to prevent the City from filing and maintaining a civil action to recover any taxes, penalties, interest, and fees due from a seller. Failure to obtain a business license under this chapter or to collect taxes which otherwise should have been collected under this chapter shall not be a defense to an action by the City against such seller to recover all amounts due.

B. The sales tax administrator may enter into an agreement secured by a confession of judgment or a deed of trust on property with sufficient equity to cover the liability for delinquent sales taxes, interest, penalty and fees on such payment terms as the administration finds reasonable; provided, that the terms shall require full payment of all obligations of the seller within a maximum period of 24 months from entry of such an agreement, unless a shorter term is required by other provisions of this code, in which case those provisions shall be followed. The sales tax administrator may not enter a repayment agreement with a seller who has been involved in a repayment agreement under this subsection within the prior five years, unless otherwise provided in this code.

C. All businesses or owners of businesses against which the City has an outstanding judgment may be required by the sales tax administrator to deposit sales tax moneys collected, on a weekly basis, to a joint bank account upon which the City is signatory. Dual signature would be required for withdrawal from the account.

D. A person convicted of a violation of a provision of this chapter shall be subject to a fine of not more than $500.00; provided, for a subsequent conviction for a violation of any provision of this chapter that occurs within three years of a prior conviction for a violation of any provision of this chapter, the person shall be subject to a fine of not more than $1,000 and imprisonment for not more than 90 days. Each day upon which a violation continues is a separate violation. The failure or refusal of a person to comply with an order of the sales tax administrator specifically authorized by this chapter is a violation of a provision of this chapter.

3.08.360 Failure to obtain business license – Civil penalty – Other remedies.

A. A seller who fails to obtain a business license as required by this chapter, after notice in writing of the obligation to get a business license has been delivered personally or by regular mail to the seller, the seller’s place of business, or the last known address of the seller is subject to a civil penalty not to exceed $1,000, in addition to any taxes, penalties and interest owing pursuant to this chapter, plus costs and actual attorney fees incurred by the City in the collection of the civil penalty assessed against the seller.

B. The City may pursue any other civil or criminal remedies against a seller who fails to obtain a business license required by this chapter, including injunctive relief.

3.08.370 Failure to file returns or remit taxes – Civil penalties – Publication – Injunction.

A. Failure to file two or more returns in any one tax year after notice from the City to the seller’s address last shown on its business license application constitutes an infraction, punishable by a fine not to exceed $500.00.

B. A seller who fails to file a return within the time required by this chapter, or who fails to remit all taxes required to be collected by him, or later found to be due, is subject to a penalty of five percent per month of the amount of taxes found or estimated to be due until paid, to a maximum of 25 percent. The filing of an incomplete return, or the failure to remit all taxes due, is the equivalent of filing no return. All taxes due but not paid within the time required by this chapter shall accrue interest at the rate of 15 percent per annum.

C. Any seller who fails to file a return required under this chapter within 15 days of written notification by regular mail, regardless of whether any taxes were due for the reporting period for which the return was required, shall be subject to a penalty of $100.00 for each return not filed, in addition to any penalty for late filing.

D. Sellers who have not filed returns for two consecutive reporting periods during a tax year who have not notified the sales tax administrator that they have temporarily or permanently ceased to do business in the City shall be assumed to have ceased conducting business and shall be removed from the roll of active businesses. A business removed from the active businesses roll may not thereafter conduct business within the City until reinstated to the roll. Reinstatement of a business removed from the active businesses roll pursuant to this section may occur only upon payment of a reinstatement fee of $75.00.

E. If the sales tax administrator has reason to believe that a seller who has been removed from the roll of active businesses pursuant to this section or as a result of written notice by the business to the sales tax administrator is in fact continuing to conduct business, the sales tax administrator may cause a proceeding to be filed in the Superior Court requesting the issuance of an injunction prohibiting that business from continuing to conduct business.

F. As soon as practicable after the expiration of 15 days following the end of each calendar month during the tax year, the sales tax administrator shall publish in customary circulation in the appropriate area of the City, a list of every seller who:

1. Was conducting business in the City and was required to file a return during that month, but who has not filed the required return, unless the seller has paid any balance due for that period in full;

2. Did not pay all balances due; or

3. Is delinquent in the payment of amounts owed entered under the provisions of this chapter. [Ord. 03-2020 § 4, 2020; Ord. 403-00 § 2, 2000; Ord. 348-97 § 12, 1997].

3.08.380 Failure to keep adequate records.

A. No person may falsify or misrepresent any fact or matter in any return, statement, application, or other document submitted to the City under this chapter.

B. No person may falsify any records required to be kept by a seller under this chapter. No person may submit or provide falsified or misleading records or other documents to the City or its auditor.

C. No seller may refuse to allow inspection at reasonable times of records required by this chapter to be kept by a seller.

D. Misrepresentation of a fact or a matter occurs and documents are misleading when the representation or information is presented as complete with respect to the subject but additional, undisclosed, relevant facts or information known, or that should be known, to the seller would cause the person examining the representation or document to understand or interpret the representation, information or document in a manner less favorable to the seller.

3.08.390 Misuse of business license.

No person may conduct business within the City under a business license issued to a different person.

3.08.400 Misuse of exemption certificate.

A. No person may use an exemption certificate to avoid, or to assist another in avoiding, the payment of the tax levied under this chapter on a transaction to which the exemption does not apply.

B. No person may use an exemption certificate to benefit a person who is not entitled to the tax exemption under the certificate.

3.08.410 Sales tax liens.

A. The sales tax administrator may cause a sales tax lien to be filed and recorded against all real and personal property of a seller where the seller has:

1. Failed to file sales tax returns for two consecutive filing periods as required by the chapter; or

2. Failed to pay all taxes, penalties and interest due for more than two consecutive filing periods.

B. Prior to filing a sales tax lien, the sales tax administrator shall cause an additional written notice of intent to file a lien to be mailed by certified mail to the last known address of the delinquent seller. Neither the failure to mail such notice, nor the failure of the seller to receive such notice invalidates a lien filed by the City.

Article VIII. Definitions

3.08.430 Definitions.

For the purpose of this chapter when not clearly indicated by the context, the following words and phrases have the following meanings:

“Buyer” means and includes each person who purchases, rents or leases tangible property, including space, and who acquires within the City services or the rights to services, or who receives services within the City for which the tax under this chapter has not previously been paid.

“Coin-operated machine” means a slot machine, marble machine, jukebox, merchandise vending machine, laundry, dry cleaning and any other service-dispensing machine or amusement device of any kind which requires the insertion of a coin to make it operative.

“Consideration” means the overall consideration, whether money, credit, right or other property expressed in the terms of money, paid or delivered by a buyer to a seller, all without any deduction on account of the cost of tangible 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.

“Food sold for domestic home consumption” means substances, whether liquid, concentrated, solid, frozen, dried or dehydrated form, that are sold for ingestion or chewing by humans and are consumed for their taste or nutritional value. Food for domestic home consumption includes bakery items (bread, rolls, buns, biscuits, bagels, croissants, pastries, donuts, Danish, cakes, tortes, pies, tarts, muffins, bars, cookies, tortillas, etc.) which are sold for other than immediate consumption and dietary supplements. Alcoholic beverages, tobacco, and food sold through vending machines are not food for domestic consumption. Nor does food for domestic home consumption include prepared foods. “Prepared foods” are foods generally intended for, and which are ready for, immediate consumption including but not limited to: food sold in a heated state or heated by the seller; two or more food ingredients mixed or combined by the seller for sale as a single item; or food sold with eating utensils provided by the seller, including plates, knives, forks, spoons, glasses, cups, napkins, or straws.

“Monthly” means the period beginning the first day of a calendar month and ending with the last day of a calendar month.

“Nonprofit organization” means an association, corporation or other organization where no part of the net earnings of the organization inures to the benefit of any member, shareholder or other individual.

“Overnight cruise vessel” means a ship with a capacity of not less than 75 passengers with overnight accommodations, which must include a berth for every passenger.

“Person” means and includes individuals and every organization or entity recognized in law and every group of persons acting as a unit.

“Quarterly” and “quarter” mean each calendar quarter of three consecutive months beginning the first day of the first month of the quarter and ending with the last day of the third month of the quarter; the first calendar quarter begins on January 1st each year.

“Rentals,” “rent” and similar terms include leases, licenses, and other transactions involving the temporary transfer of possession or right to use property without the transfer of title.

“Sale” or “retail sale” means and includes:

1. Every sale, exchange or performance of services;

2. Every rental or lease of personal property, whether tangible or intangible;

3. Every sale of the use or play of a coin-operated machine;

4. Installment, credit and conditional sales;

5. Every sale of use or title in tangible personal property, regardless of quantity or price, whether sold by coin-operated machine or otherwise;

6. Every rental or lease of real property;

7. Gaming sales authorized by AS 05.15.

“Sales price” means consideration paid by the buyer whether money, credit, rights or other property, expressed in terms of money equal to the fair market value of the consideration and including delivery or installation costs, taxes, or any other expenses whatsoever, measured by the gross sales price of the seller.

“Sales tax administrator” means the person designated by the City Manager to administer and enforce the provisions of this chapter; provided, in the absence of such a designation, it shall be the City Treasurer.

“Seller” means and includes persons who are vendors of property, persons furnishing services, the lessors of rental space or goods, and all persons making sales, including consignees and persons who conduct sales where items will be sold for a commission or fee.

“Services” means all services of every manner and description which are performed or furnished for compensation, including but not limited to:

1. Professional services;

2. Services in which a product or sale or property may be involved, including personal property made to order;

3. Utilities and utility services not constituting a sale of personal property, including sewer, water, solid waste collection or disposal, electrical, and telephone services and repair;

4. Transportation services to or from Whittier;

5. Services rendered for compensation by any person who furnishes any such services in the course of his/her trade, business or occupation, including all services rendered for commission, but does not include services performed by an employee for an employer;

6. Any other services, including advertising, maintenance, repair, recreation, amusement and craftsman services other than services performed by an employee for an employer.

“Tax year” means the period beginning April 1st and continuing through September 30th each year.

“Time of sale” means the time at which the sale or rental agreement is reached between the buyer and the seller, without regard to the agreed time for delivery, performance, or payment.

“Temporary lodging” means any lodging of 31 days or less.

“Weekly” means the week beginning on Sunday and ending with Saturday.

“Wholesale sale” means the sale of goods or articles to another for resale in the same form purchased. [Ord. 517-07 § 5, 2007; Ord. 454-03 § 3, 2003; Ord. 348-97 § 13, 1997].