FY1965-5 Providing for Consumer's Sales TaxISLAND BOROUGH AS FOLLOWS:
period and
KODIAK ISLAND BOROUGH .
ORDINANCE NUMBER 65- •5
AN ORDINANCE OF THE KODIAK ISLAND BOROUGH, KODIAK,
ALASKA, PROVIDING FOR THE LEVY AND COLLECTION OF A CONSUMERS' SALE
TAX NOT EXCEEDING ONS PERCENT OF THE SALES PRICE ON ALL RETAIL
SALES, ON ALL RENTS, AND ON ALL SERVICES MADE WITHIN THE BOUNDARIES
OF THE KODIAK ISLAND BOROUGH AND PROVIDING FOR PENALTIES
BE IT ORDAINED BY THE $OROUGH ASSEMBLY OB' - THE KODIAK
WHEREAS, Section 07.15.320, of A. `asks Statutes, pro -
vides that a first or second -class borough, may by ordinance adopted
without weighted voting, adjust its iijoperty tax structure in whol
or in part to the property tax strult re of any home rule city
within it, including but not limited to, excluding personal property
from taxation, establishing,$ycemptions, and extending the redempti
Page One, ORDNANCE NUMBER 65- 5
WHEREAS, the CY OF KODIAK is a home rule city within
tile confines f the bpund ies of the KODIAK ISLAND BOROUGH and
the ITY OF KO IiK had e7cluded personal property from taxation
and p ovided reof a onepercent (1 %) sales tax and
WHE EAS, the KODIAK ISLAND BOROUGH ASSEMBLY, is desiro
of adjust 'ng it property tax structure in part to the property
tax struct e o the CITY OF KODIAK by excluding personal property
tax from exe •t on and providing for a one percent (1 %) sales tax
in lieu there
s
NOW, THEREFORE, be it ordained by the KOD•IAK ISLAND
BOROUGH ASSEMBLY that a Consumers' sales tax not exceeding one
I percent (1 %) of the sales price be levied upon all retail sales,
on all rents and on all services made within the KODIAK ISLAND
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BOROUGH and that this proposition be placed before the qualified
I voters of the KODIAK ISLAND BOROUGH at the next regular borough
election to be held on the first Tuesday of October at which elec-
tion the qualified voters of the KODIAK ISLAND BOROUGH shall vote
on the question of whether the Kodiak Island Borough shall collect
a one percent (1 %) sales tax on all retail sales, on all rents and
on all services made within the boundariesof the KODIAK ISLAND
BOROUGH in lieu of a pesonal property tax and that if the vote is
favorable, this ordinance known as the KODIAK ISLAND BOROUGH sales
tax ordinance shall immediately become effective.
THIS ORDINANCE SHALL BE KNOWN AS THE KODIAK ISLAND
BOROUGH SALES TAX ORDINANCE.
LEVY OF TAX ON ALL RETAIL SALES, ON ALL RENTS AND ON
ALL SERVICES MADE WITHIN THE KODIAK ISLAND BOROUGH. On and after
the adoption of this ordinance by the qualified voters of the
KODIAK ISLAND BOROUGH, a consumer sales tax not exceeding one perc nt
(1 %) of the sale price on all retail sales, on all rents, and on
all services made within the KODIAK ISLAND BOROUGH shall be levied
and collected.
Section one. Levy of tax on buyers of goods, wares
and merchandise. On and after the effective date of this ordinanc
every buyer of goods, wares and merchandise within the KODIAK
ISLAND BOROUGH, if not excepted or exempted as hereinafter provide
Page Two, ORDINANCE NUMBER 65-
(shall pay to the Seller, for the use and benefit of the KODIAK
t
SLAND BOROUGH, atax of one percent (1 %) of the retail price of all
such goods, wares and merchandise, by him purchased provided, that
on cash sales, such tax shall be due and payable at the time of sal (p,
and on credit sales only to the extent of payment or payments actual
1
lly received on such accounts at the time such payment or payments,
are received.
A. Exceptions and exemptions:
No tax shall be levied upon the following:
1. On sales definitely made for the purposes of
2. On wholesale sales made to licensed dealers.
3. On isolated sales made by any one not primarily
in the business of buying and selling.
4. On sales made to the government of the United
States, the State of Alaska, the City of Kodiak, the Kodiak Island
Borough and all duly organized agencies thereof;
5. On sales of school lunches.
6. On medicines by prescription.
Section Two. On and after the effective dates of this
resale.
,ordinance, every person who buys within the KODIAK ISLAND BOROUGH,
any service or any service combined with other things of value,
!including but not limited by the following schedule of "taxable
services ", shall pay to the person, firm, association or corporatioln
furnishing such service, and for the uses and benefit of the KODIAKj
ISLAND BOROUGH, a tax of one percent (1 %) of the total cost or charge
made for such; provided that services as construed herein shall
include all things of value for which the Seller makes a charge to
r and regardless of whether such charge be made for servi es
the Buyer, a g
alone or for services combined with other things of value.
Page Three, ORDINANCE NUMBER 65-
A. Taxable Services: The following services shall
be taxable under the foregoing levy: services from lawyers,
accountants, barbers, services from shoe repair shops; services
from telephone companies; services from power and light companies;
services from cold storage plants, including cold storage box
and locker rentals; services from hotels, rooming houses and
apartment houses, other than rent; services from launderies and
drycleaners; services from carpenters and cabinet makers; serviced
from house painters and decorators; services from tinsmiths and
sheet iron workers; services from water supply organizations;
services from freight hauling organizations; scavenger services;
taxi and bus services, except that pupils going to and from
schools shall not pay tax for such trips; services from restauranls,
soft drink parlors, ice cream parlors; services from oil delivery,
organizations; services from watchmakers; services from radio,
television and mechanical refrigeration repair and servicemen;
services from photographers, including all film development; serve
ices from printing establishments; services frm garages; services
from mechanics and machinests, electricians and plumbers and all
services of similar nature; all rental charges, including rentals
on lying quarters; services of beauty parlors; services of welder ;
services of stove cleaners and services of all other tradesmen an4
craftsmen.
B. Exceptions and Exemptions:
1. Services rendered by or to the Unitd States
government; the State of Alaska; the City of Kodiak; the Kodiak
Island Borough, and any duly organized agency thereof;
2. Services rendered by banking institutions.
Page Four, ORDINANCE NUMBER 65-
parlors.
4. Services rendered by airlines and on sales made
of insurance policies.
employer.
scale:
3. Services rendered by doctors, dentists and funeral.
5. Services rendered by a salaried employee to his
Section Three. Levy of tax on buyers of amusement and
entertainment unless excepted and exempted by provision of sub-
section "A" herein following, any person who, on and after the
effective date of this ordinance buys a ticket or pays a fee for
any kind of bpublic entertainment, or amusement, within the KODIAK,
ISLAND BOROUGH shall at the time of purchase, pay to the Seller fo$r
the use and benefit of the KODIAK ISLAND BOROUGH, a tax of one
percent (1 %) of the sales price.
A. Exceptions and Exemptions: The foregahg tax shall
not apply to:
1. Entertainment offered exclusively to members
of fraternal organizations.
2. Entertainment given to raise funds for religioup,
charitable, educational or health uses.
Section Four. Sellers Responsibility and Liability.
A. Every Seller of goods, wares, merchandise and
services included within the meaning of this ordinance shall be
responsible and liable to the KODIAK ISLAND BOROUGH for the collect
tion of a tax provided for herein and shall account for and pay
such taxes when due, to the KODIAK ISLAND BOROUGH in accordance
with this chapter, as hereinafter provided. The Seller shall add
this tax to the sale price in strict accordance with the following
CHARGE TAX
Under 25¢ None
.25 through .45 .01
.46 through .75 .02
.76 through1.24 .03
1.25 through 1.45 . .04
1.46 through 1.75 .05
1.76 through 2.24 .06
2.25 through 2.45 .07
2.46 through 2.75 .08
2.76 through 3.24 .09
3.25 through 3.45 .10
Over 3.45 continue on same scale
Page Five, ORDINANCE NUMBER 65 -.
'Provided, however, that upon individual sales of goods,
war merchanise or services ata price in excess of $500.00,
a tax shall only be paid on the first $500.00 of the price.
B. The Seller shall be accountable to the KODIAK ISLANI
BOROUGH for any and all such taxes immediately upon the tax being
due and pale to the Seller and regardless as to whether the tax
has actually been collected by the Seller. Provided, nevertheless,
that with respect to charge accounts, the liability of the Seller
to account for and pay over to the Borough shall arise only to
the extent of payment or payments received on such accounts.
C. The taxes payable by the Seller to the KODIAK
ISLAND BOROUGH as in this chapter provided, shall be paid quarterly
of each calendar year. The total tax payable to the KODIAK ISLAND!
BOROUGH for any given quarter shall be paid to the Clerk of the
ij Borough for the use and benefit of the KODIAK ISLAND BOROUGH on
or before the last day of the month following the end of the qu
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ter, and all taxes payable but not so paid, shall become delinquent
on the first day of the following month. The Seller, if he shooses
may.pir to the KODIAK ISLAND BOROUGH an amount equal to one percent
(1 %) of his gross sales or services, instead of the amount of taxes
actually collected, but he may not change from memethod to the
other without first obtaining consent to do so, in writing from
the Borough Chairman.
Accompanying every tax remittance, the Seller shall
deliver to the KODIAK ISLAND BOROUGH, a statement of the tax
accounts, complete in detail and sworn to by the Seller or other
person having personal knowledge of the Seller's business, and upon
form furnished by the KODIAK ISLAND BOROUGH. The Seller shall
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.Page Six, ORDINANCE NUMBER 65- J
Borouhairman for a determination of the accuracy of any tax
report so furnished and in respect to any taxes which the said
also furnish to the KODIAK ISLAND BOROUGH, when requested to do
b the
sa �I °otter and additional information deemed necessary by
Borough Chairman may consider unaccounted for.
D. Any and all taxes which are not paid by the Seller
to the KODIAK ISLAND BOROUGH when due shall draw interest from
the date of delinquency until paid at the rate of eight percent
(8 %) per annum.
E. If the Seller fails to pay to the KODIAK ISLAND
BOROUGH any tax payable under this chapter, then due, the Seller
shall pay a penalty of ten percent (10 %) of the tax which is then j
due and unpaid.
alties due and payable to the KODIAK ISLAND BOROUGH under this
chapter may be enforced through civil action brought in a court
of competent jurisdiction.
G. To compensate sellers for keeping sales tax record
and filing returns as required by this chapter, a discount equal
to three percent (3 %) of the amount of tax due will be allowed,
and Sellers may deduct that amount when making remittances, pro-
viding that returns be filed before the date of delinquency. A
Seller filing a delinquent return forfeits his right aid claim to
such discount and must remit one hundred percent (100 %) of the
tax due, plus the penalties and interest hereinabove stipulated.
Section Five Disposition of Tax Funds:
A. All of the monies collected under this ordinance
shall be in lieu of personal property taxes for all areas of the
KODIAK ISLAND BOROUGH outside of the CITY OF KODIAK.
Page Seven, ORDINANCE NUMBER 65-
F. Collection of any tax or taxes, interest and pen-
Section Six. Penalties for violation: Any person,
firm, Atgraition or corporation found guilty of a violation of any
of the provisions of this ordinance shall pay a fine not to exceed
i 'i$300.0 or be imprisiond in jail for a period of not more than
11 ,thirty (30) days or both fined and imprisoned, upon conviction in
il
y the district magistrate's court.
!I Section Seven. Ratification. This ordinance shall
Il be adopted and become effective upon approval of the majority of
votes of the qualified electors of the KODIAK ISLAND BOROUGH at
the next regular KODIAK ISLAND BOZO UGH election to be held on the
first Tuesday of October, 1965, after the results of the same have
results thereof,
i t
been canvassed and entered upon the records and the r
have been publicly declared and certified as to the requirements
''of law.
i 1 ' c.t_ ?; ci / s 1965
First reading and approval date: August 19,
Second reading and approval date: September , 165
BY:
KODIAK ISLAND BOROUGH
BY: •
Chairman
Presiding officer
Page Eight, ORDINANCE NUMBER 65 -—