FY2007-06 - Transient Accommodations TaxKODIAK ISLAND BOROUGH
ORDINANCE NO. FY2007 -06
AN ORDINANCE OF THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH
AMENDING TITLE 3 REVENUE AND FINANCE CHAPTER 3.30 TRANSIENT
ACCOMMODATIONS TAXTO PROVIDE FOR COLLECTION THAT IS MORE EFFICIENT
WHEREAS, the transient accommodations tax imposed by Chapter 3.30 of the Kodiak Island
Borough Code of Ordinances (KIBC) must ordinarily be returned and remitted only once every three
months even if the operator of the business which generates that tax is delinquent with respect to
prior quarters; and
WHEREAS, requiring the operator of a business which generates the transient accommodations
tax to file returns and remit the tax on a monthly basis if that operator is delinquent with respect to
one or more prior quarters may help to avoid the accrual of large tax delinquencies and the loss of
tax revenues; and
WHEREAS, as Chapter 3.30 of the KIBC presently reads, the authority of the Kodiak Island
Borough to record a lien for the payment of the transient accommodations tax immediately upon that
tax becoming delinquent maybe in doubt; and
WHEREAS, it is desirable for Chapter 3.30 of the KIBC to set forth and adopt the same rules
regarding the priority of a lien for payment of the transient accommodations tax as are authorized by
Alaska Statute 29.45.650(e); and
WHEREAS, it is appropriate to amend the relevant sections of KIBC 3.30 to give the Finance
Director of the Kodiak Island Borough the discretion to require the operator ofa business which is
delinquent in the filing of returns or the remission of payments with respect to the transient
accommodations tax, to authorize the recordation of a lien for the payment of the transient
accommodations tax immediately upon its becoming delinquent, and to avoid any conflict with State
of Alaska statutes governing the priority of such a lien;
NOW, THEREFORE, BE IT ORDAINED BY THE ASSEMBLY OF THE KODIAK ISLAND
BOROUGH THAT:
Section 1: Classification. Section 2 and 3 of this ordinance are of a general and permanent
nature and shall become a part of the Code of Ordinances of the Kodiak Island Borough.
Section 2: Section 3.30.240 of the Kodiak Island Borough Code is hereby amended to read as
follows:
3.30.240 Lien for tax, interest, and penalty.
A. The tax, interest, and penalty imposed under this chapter and the lien filing fee
under subsection B of this section shall constitute a lien in favor of the borough
upon all real and personal property of every person required to collect and
remit the tax. The lien arises at the time of delinquency one-hundred-and
Kodiak Island Borough, Alaska
Introduced by Manager Gifford
Requested by Finance Director
Drafted by: Borough Attorney
Introduced: 09/07/2006
Public Hearing: 09/21/2006
Amended: 09/21/2006
Adopted: 09/21/2006
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Ordinance No. FY2007 -06
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er-Lsns —ar,d encumbrances
except those for property taxes and special assessments; provided, however,
that the lien is not valid as against a person in thc position of a prior
office of the recorder for the Kodiak Recording District in the manner provided
•
S13.10.090 through 1 3.10.150 and the lien is not valid
against a purchaser who, prior to thc recording of it, in good faith and without
actual notice of the lien or thc underlying tax liability, has acquired for fair
market value an interest in property otherwise subject to thc lien. and may be
recorded at any time thereafter. When recorded the lien has priority over all
other liens except (1) liens for property taxes and special assessments; (2)
liens that were perfected before the recording of the sales tax lien for amounts
actually advanced before the recording of the sales tax lien and (3) mechanics'
and materialmen's liens for which claims of lien under AS 34.35.070 or notices
of right to lien. Upon recordation a copy of the lien shall be sent to the last
known address of every person named in the lien. Failure to comply with this
requirement shall not, however, affect the validity of the lien or the borough's
right or authority to foreclose upon it.
B. Fees for the filing and releasing of liens authorized by this section shall be
established by resolution of the assembly.
Section 3: Section 3.30.140 of the Kodiak Island Borough Code is hereby amended by addition
of a paragraph I to read as follows:
I. A person who fails to timely comply with the provisions of this chapter relating
to the filing of quarterly reports and remittance of taxes collected for any one
quarter during a calendar year shall, if required by written notice from the
finance director file the required reports and transmit collected sales taxes
monthly until such time as the finance director determines that a willingness
and ability to comply with the requirements of this chapter has been
established. Monthly reports and remittances shall be due on the fifteenth day
of each month following the month of collection.
Section 4: Effective Date. Sections 2 and 3 shall become effective immediately.
ATTEST:
ADOPTED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH
THIS TWENTY FIRST DAY OF SEPTEMBER 2006
Nova M. Javier, CM
Kodiak Island Borough, Alaska
, Borough Clerk
KODIAK ISLAND BOROUGH
Ordinance No. FY2007 -06
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