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1996-19 Adding Chapter 3.30 Transient Accommodation TaxKODIAK ISLAND BOROUGH ORDINANCE NO. 96 -19 Introduced by: Mayor Selby Requested by: Borough Clerk Drafted by: Borough Attorney Introduced: 11/26/96 Public Hearing: 12/05/96 Amended: 12/05/96 Adopted: 12/05/96 AN ORDINANCE ADDING CHAPTER 3.30 TRANS /ENT ACCOMMODATION TAX TO THE KODIAK ISLAND BOROUGH CODE OF ORDINANCES TO IMPLEMENT AND ADMINISTER A TRANSIENT ACCOMMODATIONS TAX WHEREAS, the Board of Directors of the Kodiak Island Convention and Visitors Bureau submitted an initiative petition to place the question of levying and collecting a tax not to exceed five percent (5 %) of the amount charged persons for using transient accommodations on the October 1, 1996 election ballot; and WHEREAS, the petition has been duly certified by the Borough Clerk and approved by a majority of the qualified voters in the Kodiak Island Borough eligible to vote on the question; NOW, THEREFORE, BE IT ORDAINED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH THAT: Section 1: This ordinance is a general and permanent nature and shall become a part of the Kodiak Island Borough Code of Ordinances. Section 2: This ordinance shall take effect on the first day of January, 1997. Section 3: Title 3 of the Kodiak Island Borough Code of Ordinances is amended by adopting a new chapter 3.30 as follows: CHAPTER 3.30 Transient Accommodations Tax 3.30.010 Levy of sales tax. A sales tax of five percent (5 %) of the rental charge is levied on all transient rentals for accommodations within the Kodiak Island Borough. 3.30.020 Accrual and collection. Sales taxes imposed by this chapter are due and payable by the buyer at the time of payment for the rental and are delinquent if not paid when due. Every person making rentals that are taxable under this chapter shall collect the taxes from the purchaser at the time of the rental or, with respect to credit transactions, at the time of collection of the rental fee and shall transmit the money collected on a quarterly basis to the borough. Kodiak Island Borough, Alaska Ordinance No. 96 -19 Page 1 of 13 3.30.025 Allocation of sales tax proceeds. A. The sales taxes collected under section 3.30.010 shall be allocated to a separate fund or account to be appropriated and utilized solely for increased development of the tourist industry, and may be allocated for tourism programs, tourism enhancement projects, such as beautification within the borough, and the administrative costs associated with such programs; B. The sales tax collected in any of the six (6) villages may be appropriated for the purpose of the development of the tourist industry in the village. 3.30.030 Installment payments. When the payments for a rental are made on an installment basis, the entire sales tax shall be collected from the down payment, or, if a down payment is not made or is insufficient to pay the tax, then from the entire first installment payment or payments until the tax is paid. 3.30.040 General exemptions. A. The following classes of rentals are exempt from the tax imposed by this chapter: 1. Rentals to religious and charitable organizations as defined in subsections 501(c)(I), (3), and (4) of the Internal Revenue Code, for the conduct of regular religious or charitable functions and activities, and not for the support or maintenance of the general membership or for communal living; 2. Rentals to the United States, the State of Alaska, and any agencies or political subdivisions thereof; 3. Rentals which the borough is prohibited from taxing by the constitution or laws of the United States or the state of Alaska; 4. Rentals by businesses which provide sleeping accommodations as an incidental part of their business but do not provide transient accommodations separately as a business; i.e., fishing boat charters, guide operations not based in a lodge that also sells lodging, and similar services; 5. Rentals to nonprofit organizations operated primarily for the purpose of planning, promoting, and conducting organized group activities for participants who are eighteen (18) years of age or less; and 6. Rentals for accommodations located within a municipality which levies and collects a sales tax on transient room rentals. No certificate is required for the exemption provided by this subsection. 3.30.045 Partial exemption. A business that provides transient accommodations separately in the normal course of business, shall collect the tax on the estimated value of the rentals included in any package sales which include other services such as guiding or transportation. 3.30.055 Senior citizens exemption. A. A person sixty -five (65) years of age or older who has resided in the Kodiak Island Borough for a continuous period of thirty (30) days or more may obtain a senior citizens sales tax exemption certificate by submitting a completed application to the finance director on a form provided by the borough. The application must be signed Kodiak Island Borough, Alaska Ordinance No. 96 -19 Page 2 of 13 by the applicant under oath and shall contain information relating to the applicant's residence, marital status, rental or ownership of occupied dwelling, persons occupying the dwelling, and other information reasonably necessary to determine the applicant's eligibility and monitor the use of the exemption certificate. The applicant shall also submit for inspection and copying a birth certificate, or other evidence determined by the finance director to be adequate, to establish the applicant's age. The exemption certificate shall be issued without charge in the name of the applicant and shall be valid for a period of three (3) years. B. An exemption certificate issued to a person who is prevented or impaired from personally making purchases or payments by a physical or mental infirmity may designate not more than two (2) other persons who shall be authorized to utilize the certificate when making purchases and payments on behalf of and for the sole use and benefit of the certificate holder or the certificate holder's spouse. C. No person may utilize a senior citizen tax exemption certificate to purchase or acquire rentals that are to be utilized by a person or persons other than the certificate holder, the certificate holder's spouse, a dependent of the certificate holder, or another person or persons who would be qualified to have a senior citizens exemption certificate issued to them under this section. As used in this section, "dependent" means a child of the certificate holder or the certificate holder's spouse who resides with the certificate holder when not attending school and who receives more than one -half (Y2) of his or her support from the certificate holder. 1. Notwithstanding any other provisions of this chapter no person may utilize a senior citizen tax exemption certificate to rent a room which will be used in a commercial business or enterprise or for the production of income. 2. Persons making rentals to or for the benefit of a senior citizen which are exempt from tax under the provisions of this section shall confirm the identity of the person or persons presenting an exemption certificate, if not personally known to them, by requesting identification and shall maintain records of each such exempt rental with an appropriate reference to the senior citizen exemption certificate number. If the person making the rental has reason to believe that it is not for use by a senior citizen or other qualified user, because of the volume, type of purchase, or other facts, that person shall promptly report the possible fraudulent use of the exemption certificate to the borough finance director. The finance director shall investigate the rental, and if the finance director determines that the exemption certificate is being abused, the matter shall be referred to the mayor who shall conduct such further investigation as is determined necessary and present the facts to the assembly for authorization to initiate prosecution or revocation action, or both. 3. Senior citizens' exemption certificates shall be subject to revocation as provided in section 3.30.070 of this chapter. 3.30.060 Certificate of exemption. A. A person entitled to the exemption under section 3.30.040 shall apply to the borough for a certificate of tax exemption which will be issued without charge to qualified persons. The application shall be submitted on a form provided by the borough finance office and shall contain the name, address, type of organization, the section under which the exemption is claimed, and such other information as is Kodiak Island Borough, Alaska Ordinance No. 96 -19 Page 3 of 13 required by the finance department. Duplicate certificates will be issued on request. B. The certificates of exemption shall be valid for a period of one (1) year and the expiration date shall be printed on the face of the certificate. Exemption certificates may be renewed annually, without charge, by completing an application form containing information required to assess the continued existence of the exemption. 3.30.070 Revocation of certificate of exemption. A. A certificate of tax exemption may be revoked by the mayor for any of the following acts or omissions: 1. Falsification of any statement or information in the application for certificate of exemption; 2. Utilization of the tax - exempt certificate for the purchase or acquisition of nonexempt rentals; 3. Knowingly or negligently permitting or authorizing the use of the certificate by a person other than an authorized agent or employee of the person or entity to whom the certificate was issued. B. Prior to revocation of a certificate, the holder of the certificate shall be provided with notice of the alleged violation not Tess than ten (10) days prior to the proposed effective date for revocation of the exemption certificate. The person or entity to whom the certificate was issued may request a hearing before the mayor regarding the alleged violation by filing a written request with the mayor prior to the effective date for revocation. If requested, the hearing shall be held within twenty (20) days after the date of receipt of the request, and the exemption certificate shall not be revoked prior to the date of hearing. C. A decision of the mayor revoking an exemption certificate may be appealed to the assembly by filing a written notice of appeal with the borough clerk within ten (10) days after receipt of the decision. The hearing on the appeal shall be scheduled before the assembly at a regular or special meeting held within thirty (30) days after receipt of the notice of appeal. The assembly may, in its discretion, hear the matter either on the record or de novo. If the appeal is heard de novo, no evidence may be presented before the assembly which was not presented before the mayor. D. If an exemption certificate is revoked, a new certificate may not be issued to the same person or entity for a period of two (2) years from the date of revocation. E. The revocation provided by this section is in addition to any other penalties provided by law for the violations. 3.30.080 Tax collectors registration certificate. A. All persons engaged in selling or renting property subject to the tax imposed by this chapter shall file an application for a certificate of registration not later than the date of commencing business in the borough or opening a place of business within the borough. An application for a new business not previously registered to collect sales taxes shall be accompanied by a one hundred dollar ($100) deposit, or, in the case of a person who does not maintain a permanent place of business within the borough or who is not a local resident residing within the Kodiak Island Borough, a two hundred dollar ($200) deposit which the registrant may recover by a deduction from the remittance submitted with the first quarterly return filed or, if that return is Kodiak Island Borough, Alaska Ordinance No. 96 -19 Page 4 of 13 insufficient, the balance shall be refunded. If applicant has established credit with the borough, the finance director may waive the required deposit. B. Upon receipt of a properly executed application, on a form provided by the finance director, accompanied by the required deposit, the finance director shall issue the applicant a certificate of registration, stating the address of the place of business to which it is applicable and authorizing such person to collect the sales tax. The certificate shall be prominently displayed at the place of business named on the certificate. C. The certificate of registration is nonassignable and nontransferable, and must be surrendered to the finance director by the person or entity to whom it is issued upon cessation of business at the location named in the certificate. If the business is continued at the same location but there is a change in its business form, the certificate holder making such change shall surrender the old certificate to the finance director for cancellation and the successor organization shall apply for a new certificate of registration. Upon receipt of such application properly executed, a new certificate bearing a new number will be issued to such successor. D. When there is a change of address for the certificate holder's place of business, a new certificate of registration is required, bearing the same registration number, showing the new address. E. An applicant for a new certificate required to reflect a change in business form or a change of address for an existing certificate holder is not required to post a deposit with the application. 3.30.082 Failure to obtain registration certificate. A. It shall be unlawful for any person to engage in, or continue in, business within the borough or to conduct activities within the borough unless and until such person obtains a certificate of registration. In the event the finance director ascertains that any such person is engaging in, or continuing in, business within the borough without a certificate of registration, one (1) or more of the following remedies may be sought: 1. Conduct a special audit of such person's records and make a demand upon such person to obtain a sales tax certificate, in which case such person who has engaged in business or activities within the borough without a certificate shall pay a special fee to reimburse the borough for the expense of the audit, which fee shall be the lesser of the sum of one thousand dollars ($1,000) or ten percent (10 %) of any tax found to be due. However, the fee may be waived at the discretion of the finance director for good cause shown. The finance director shall also assess any delinquencies, and applicable penalties and interest, if any, against such person, if such person engaged in rentals which were or are subject to the borough sales tax. 2. Report the facts to the borough attorney for appropriate action. 3.30.090 Addition of tax. A. The tax collector shall add the tax imposed by this chapter to the rental charge, showing the tax as a separate and distinct item. The tax imposed on more than one (1) separate rental may be shown as a total tax on the aggregate price of all rentals made at one time. Kodiak Island Borough, Alaska Ordinance No. 96 -19 Page 5 of 13 B. The tax to be collected and remitted may be determined by multiplying the gross receipts from the services or product by .05 and dividing that product by 1.05. 3.30.100 Assumption of tax prohibited. No person may advertise or state to the public, or to any tenant directly or indirectly, that the tax imposed by this chapter or any part thereof will be assumed or absorbed by that person, or that it will not be added to the charge, or that it will be refunded; nor may any person assume, absorb, or fail to separately state the tax to the tenant unless otherwise specifically authorized by this chapter. 3.30.110 Tax schedule. The amount of the tax to be added to the rental charge for transient room rentals shall be determined in accordance with the following schedule: Charge Tax Under 5 cents None $.05 through $.17 $.01 .18 through .30 .02 .31 through .50 .03 .51 through .89 .04 .90 through 1.09 .05 Over $1.10 Continue on same scale 3.30.120 Maximum taxable sale. A. If the charge for rental of any property exceeds five hundred dollars ($500) for a single transaction, that portion of the price or charge in excess of five hundred dollars ($500) shall be exempt from the tax levied by this chapter. B. In determining the maximum tax payable with regard to a single transaction for rentals, each day shall be deemed a separate service transaction. The maximum tax payable shall be applicable to each deemed service transaction with tax payments to accrue and become payable at the time of filing the next quarterly return to be submitted following receipt of payment for the service. 3.30.130 Title to tax proceeds. The title to the taxes collected pursuant to this chapter shall vest in the borough upon collection by the tax collector. 3.30.140 Sales tax returns. A. Each person who rents property taxable under this chapter in any quarter ending March 31, June 30, September 30, and December 31 shall, on or before the last day of the month following the end of each quarter year, or April 30, July 31, October 31, and January 31 respectively, complete, sign, and file with the borough a return for that quarter, upon forms furnished by the borough, setting forth the following: 1. The amount received from all rentals made within the borough; 2. The amount received from nontaxable rentals, with a brief explanation of the nontaxable status; 3. The amount received from taxable rentals; 4. The amount of tax attributable to the taxable rentals; Kodiak Island Borough, Alaska Ordinance No. 96 -19 Page 6 of 13 5. The taxes collected; and 6. Such other information and supporting papers as the finance director may require in the reporting form. B. The taxes collected shall be remitted with the reporting form after deducting any administrative fees that may be allowed by section 3.30.160. C. If the last day of the month is a Saturday, Sunday, or legal holiday, tax returns and remittances shall be considered filed on time if delivered or postmarked on or before the last day of that month. D. A person making rentals within the borough shall make a return, even though none of the reported transactions are taxable. E. 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 (1) 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 (15th) day of each month following the month of collection. Any person may, upon notification to the finance director, file reports and transmit taxes monthly. F. A person doing business within the borough for a period of time that is expected to be, less than six (6) months in duration shall file sales tax returns and remit taxes on a monthly basis as provided in subsection E of this section. G. A final sales tax return shall be filed and the tax due remitted within fifteen (15) days after the date of selling or terminating a business. The purchaser of the business shall withhold a portion of the purchase money sufficient to pay any sales tax, penalties, and interest that may be due until seller displays a receipt from the borough evidencing total payment of the tax, interest, and penalties due. If the purchaser fails to withhold the required sum from the payment due to the seller, the purchaser shall also be liable for the taxes, penalties, and interest owed by the seller to the borough. 3.30.150 Credit for taxes. A person who has collected and remitted a tax on a borough rental, which tax is subsequently determined not to be due because a refund is granted for cancellation, payment is refused on a check received in conjunction with a rental, or similar circumstances, may take a credit against future taxes. Proper documentation shall be made available by the tax collector, on request, to substantiate the credit taken. 3.30.160 Administrative costs and reimbursements. To compensate renters for keeping the sales tax records and filing returns as required by this chapter and making prompt remittances, those persons shall be entitled to a fee equal to two percent (2 %) of the amount of the tax collected, and that amount may be deducted when making remittances; provided that the reports and remittances are postmarked on or before the due date for such reports and remittances. A person filing a report or remitting taxes collected after the due date forfeits the right and claim to the fee provided by this section and shall remit the entire tax due. Kodiak Island Borough, Alaska Ordinance No. 96 -19 Page 7 of 13 3.30.170 Penalty and interest. A. A person who fails to remit taxes collected on or before the due date shall pay, in addition to the tax due, a penalty of five percent (5 %) of the tax that is then due and unpaid for each month or any fraction of a month during which any part of the tax remains unpaid until a total penalty of twenty percent (20 %) has accrued, which penalty shall be added to all returns until the tax, penalty, and interest have been paid. For the purposes of this section, partial payments shall be credited first to penalty and interest and then to the tax obligation originally due. B. Taxes that are not remitted to the borough when due shall draw interest from the date of delinquency until paid at the rate of fifteen percent (15 %) per year. Interest shall not accrue on the late payment penalty assessed by subsection A of this section, but shall accrue on the civil penalty assessed by section 3.30.190. 3.30.180 Determination of exemptions. A. Every rental made within the borough, unless explicitly exempted by ordinance, is presumed to be subject to the tax imposed by this chapter. B. A tenant who claims an exemption under a provision of this chapter for which a certificate of exemption is required shall display the certificate at the time of the rental and the certificate number shall be noted on the receipt, invoice, or other evidence of the transaction. C. A tenant who believes the tax has been charged in error may make a claim to the borough for refund within thirty (30) days after the date of the rental. D. If the finance director denies a refund of the tax, the taxpayer may appeal to the mayor by filing a written notice of appeal, within ten (10) days after the finance director's decision, setting forth all facts relating to the claimed exemption. The mayor shall provide an opportunity for a hearing within thirty (30) days after the receipt of the notice of appeal. 3.30.190 Failure to collect taxes. A. A person required by this chapter to collect sales taxes levied, who fails to collect such taxes on taxable transactions, shall be assessed with a civil penalty of double the tax that should have been collected, as determined by an audit. B. If any of the following defenses are established, the civil penalty imposed by this section shall be waived: 1. The securing, in good faith, of a certificate of exemption or a statement of eligibility for exemption from the person against whom the tax would have been levied; 2. Proof of a belief, based upon advice of legal counsel or the borough finance director, that the rental was not subject to the tax levied by this chapter, accompanied by proof of notification in writing to the mayor based on such belief prior to or immediately following the transaction; 3. A reasonable attempt, in good faith, to collect the tax from the buyer. C. A renter who fails to pay the tax levied by this chapter on a taxable transaction shall be assessed with a civil penalty of double the taxes that should have been paid. D. The civil penalties imposed by this section shall be in addition to any other civil or criminal penalties imposed by this chapter. Kodiak Island Borough, Alaska Ordinance No. 96 -19 Page 8 of 13 3.30.200 Preservation of records collection of arrears tax. A. Every person required by this chapter to collect and remit taxes shall keep and preserve suitable records of the rentals, together with invoices, bills of sale and other pertinent records and documents which may be necessary to determine the amount of the tax due under this chapter and to substantiate the information provided in filed returns. The records required to be maintained shall be preserved for not Tess than three (3) years after the remittance of the taxes and shall be subject to examination by the borough finance director or any other authorized employee of the borough while engaged in reviewing or auditing the records of any taxpayer required to make a return under the provisions of this chapter. The borough shall give written notice of intent to conduct an audit under this section not less than five (5) days prior to the audit. B. Collection of arrears tax by the borough shall be limited to the period of three (3) years prior to the date when the finance director or authorized agent began an audit of the taxpayer's records, wrote to the person through use of regular mail concerning an apparent violation of this chapter, or took some other recorded action to require a certificate of registration or other compliance with this chapter. 3.30.210 Estimated tax. If the borough is unable to ascertain the correct tax to be paid by a seller because of the failure or refusal of the seller to file a return, keep accurate records, or allow their inspection, or because a return has been falsified, the borough may prepare an estimate of the tax due based on any information that may be available. Notice of the estimated tax shall be provided to the seller and shall become final for the purpose of establishing the tax liability unless the seller, within thirty (30) days after receipt of notice of the estimated tax, files an accurate return supported by records determined by the finance director to be satisfactory, establishing a lesser liability. 3.30.220 Returns confidential. Except in connection with official investigations or proceedings of the borough, whether judicial or administrative, involving taxes due under this chapter, no officer, employee, or agent of the borough may divulge any information disclosed in a report or return filed under this chapter. The prohibition of this section shall not prohibit the preparation and use of statistical summaries of sales tax data that do not disclose the identity of any person filing reports required by this chapter. 3.30.222 Corrections of errors on tax returns. If the taxpayer makes an error or errors in computing the tax on a return, the finance director or authorized agent, shall correct such error or errors and immediately notify the person filing the return by ordinary mail that such correction has been made. Any additional tax due, together with applicable penalty and interest in accordance with section 3.30.170, for which the taxpayer becomes liable shall be payable immediately by the taxpayer. If the taxpayer makes an error which results in overpayment of tax, the finance director shall allow credit against taxes due on future returns, or shall authorize a refund in accordance with section 3.30.224. 3.30.224 Refund of overpayment. The finance director, or authorized agent, shall refund overpayment of taxes brought about by mathematical errors in the return or reports filed by the person remitting the tax; computational errors made by the remitter or borough Kodiak Island Borough, Alaska Ordinance No. 96 -19 Page 9 of 13 personnel with respect to said return or reports; duplicate payments by remitter; or any overpayment made by a person filing a tax return that may be determined as a result of an audit of such person's records; provided, however, that in no event shall the remitter of sales taxes be entitled to a refund for overpayment of sales taxes where the overpaid taxes have actually been collected by said person. In the event the amount of overpayment is one hundred dollars ($100) or less, a cash refund may be authorized at the discretion of the finance director. In no event shall there be a refund for overpayment that were made more than three (3) years prior to the discovery of the overpayment by the person filing the returns or the finance director or authorized agent. 3.30.226 Protest of Tax. A. A buyer who protests the payment of the tax levied under this chapter shall pay the tax and shall provide the seller and the finance director with a written statement of protest within five (5) working days of the sale that identifies the sale, rental or service that is the subject of the tax protested, the amount of tax paid, the buyer's and seller's name, mailing address, telephone number and the basis for the protest. B. If the seller protests his liability on an assessment under section 3.30.210 which has become final, he shall pay the tax under written protest setting forth the basis for the protest. No action for a refund may be maintained nor may a defense to nonpayment be maintained in a civil action unless the amount in dispute has been paid by the seller under written protest filed at or before the time of payment. 3.30.230 Recovery of taxes. Taxes due but not paid may be recovered by the borough in an action against the tenant if that person has failed or refused to pay the tax on request by the seller or submitted a false certificate of exemption. Taxes collected but not transmitted and taxes not requested or demanded by the person charged with the duty of collecting of tax may be recovered by an action against the person renting the property. 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 and continues until liability for the tax is satisfied or the property of the delinquent person is sold at foreclosure sales. The lien has priority over all other liens and encumbrances except those for property taxes and special assess- ments; provided, however, that the lien is not valid as against a person in the position of a prior mortgagee, pledgee, or judgment creditor until notice of the lien is filed in the office of the recorder for the Kodiak Recording District in the manner provided for federal tax liens in AS 43.10.090 through 43.10.150 and the lien is not valid against a purchaser who, prior to the recording of it, in good faith and without actual notice of the lien or the underlying tax liability, has acquired for fair market value an interest in property otherwise subject to the 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. Kodiak Island Borough, Alaska Ordinance No. 96 -19 Page 10 of 13 B. Fees for the filing and releasing of liens authorized by this section shall be established by resolution of the assembly. 3.30.250 Foreclosure against real property. A lien for the tax, interest, and penalties created by this chapter may be foreclosed, when authorized by the assembly, by commencement of an action in the superior court pursuant to the procedure set forth in AS 09.45.170 220. 3.30.260 Collection by distraint and sale. A. The borough may collect taxes, with interest, penalties, and other additional amounts permitted by law, by distraint and sale of the property of the person liable to pay the taxes, interest, penalty or other additional amount, who neglects or refuses to pay them within ten (10) days after receipt of notice and demand for payment. B. In case of neglect or refusal to pay taxes or deficiencies as provided in this section, the finance director may obtain a warrant authorizing the finance director to levy upon, seize, and sell any property, except exempt property, belonging to the person for the payment of the amount due, with interest and penalty. When distraint is made as provided in this section, the finance director shall make an inventory of the property served and leave a signed copy of that inventory with the owner or possessor of the property, or at the dwelling or usual place of business, if a person of suitable age and discretion can be found, or if the taxpayer is a corporation or other type of organization with an officer, manager, general agent, or agent for process, with a notation of the amount demanded and the time and place of sale. C. The finance director shall immediately publish a notice of the time and place of sale at public auction, together with a description of the property distrained, in a newspaper published in the borough and post a copy of the notice at the post office nearest the place where the sale is to be made. D. The time of sale shall be not less than fifteen (15) or more than sixty (60) days from the date of the notification to the owner or possessor of the property, and the place proposed for the sale shall not be more than five (5) miles from the place of making the distraint. The sale may be continued from time to time in the discretion of the finance director, but not for more than thirty (30) days after the date specified in the notice. E. The property distrained shall be restored to the owner or possessor if, before the sale, payment of the amount due is made to the finance director charged with the collection, together with the fees and other charges. F. The finance director shall give to the purchaser a certificate of sale on payment in full of the purchase price. The certificate of sale: 1. Is prima facie evidence of the right of the finance director to make the sale, and conclusive evidence of the regularity of the proceedings in making the sale; 2. Transfers to the purchaser all right, title, and interest of the delinquent taxpayer in and to the property sold; 3. Where the property consists of stock, is notice, when received, to the corporation to record the transfer on their books and records in the same manner as if the stock were transferred or assigned by the party holding the stock in lieu of an original or prior certificate, which is void, whether cancelled or not; and Kodiak Island Borough, Alaska Ordinance No. 96 -10 Page 11 of 13 4. Where the subject of the sale is security or other evidence of debt, is a good and valid receipt to the person holding it, as against a person holding or claiming to hold possession of the security or other evidence of debt. G. If property seized and sold is not sufficient to satisfy the claim of the borough for which distraint or seizure is made, the finance director may, thereafter, and as often as is necessary, proceed to seize and sell in like manner any other property subject to the lien created by this chapter until the amount due from the taxpayer together with all expenses is fully paid. H. A person in possession or control of property subject to distraint, upon which a levy is made, shall, upon demand by the finance director making the levy, surrender the property to the finance director, unless the property is, at the time of the demand, subject to an attachment under judicial process. A person who fails or refuses to so surrender the property is personally liable to the borough for a sum equal to the value of the property not so surrendered, but not exceeding the amount of the taxes or deficiencies, including penalties and interest for the collection of which levy is made, together with costs and interest from the date of the levy. I. All persons shall, on demand of a police officer about to distrain or having distrained on property or rights of property, exhibit all books containing evidence or statements relating to the property liable to distrain for the tax due. J. The provisions of this chapter are not exclusive but are in addition to all other existing remedies provided by law for the divorcement of a levy and collection of taxes of the borough. 3.30.270 Prohibited acts. A. No person may: 1. Fail or refuse to file a completed tax return required by this chapter, upon demand or falsify any material statement in that return; 2. Fail or refuse to collect taxes levied by this chapter and remit those taxes to the borough as required; 3. Conduct any business in the borough relating to rentals subject to taxation under this chapter without first applying for and obtaining a certificate of registration to collect the taxes imposed on rentals; or 4. Falsify any portion of an application for a certificate of exemption. 3.30.280 Definitions. A. As used in this chapter the following definitions shall apply: 1. "Accommodations" mean a structure or portion of a structure which is occupied or intended for occupancy by transients for dwelling, lodging, or sleeping pur poses. This term includes hotels, motels, tourist homes, houses or courts, lodges, lodging houses, inns, rooming- houses, youth hostels, trailers, bed and breakfasts, and dormitories. This term does not include any hospital, medical clinic or nursing home. 2. "Buyer" or "purchaser" means a person who acquires an interest in real or personal property, or the right to use real or personal property, or who acquires services for consideration. 3. "Charitable organization" means an organization having as its primary purpose relief of the poor and distressed or of the underprivileged. Kodiak Island Borough, Alaska Ordinance No. 96 -19 Page 12 of 13 4. "Rental" means permitting the use or occupancy of real or personal property for consideration other than by means of a capital lease. 5. "Residential unit" means one or more rooms and a single kitchen in a dwelling designed as a unit for occupancy by not more than one (1) family for living or sleeping purposes. 6. "Residential uses" means for use within a residential unit. 7. "Sale" means a transfer or exchange of any property of every kind and description, or the right to use or occupy such property, for consideration. 8. "Sales price" or "charge" means the consideration, whether money, credit, or other property or interest in property, without deduction for delivery costs, taxes, or any other expense. The receipt of property or an interest in property as consideration, the "sales price" or "charge" shall be based on the fair market value of the property or interest in property. 9. "Seller" means a person, whether acting as a principal, agent, or broker, who sells, leases, or rents real or personal property or provides services to another for consideration. 10. "Transient" means a person who occupies or rents and has available for the person's own occupancy or occupancy by any other person a suite, room or rooms in a hotel -motel for fewer than thirty (30) consecutive days. An employee who occupies or has available for fewer than thirty (30) days a suite, room or rooms rented or leased for more than thirty (30) consecutive days by an employer for use on a rotating basis i)y employees is not a transient. ATTEST: o nna F. Smith, CMC /AAE, Borough Clerk Kodiak Island Borough, Alaska ADOPTED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH THIS FIFTH DAY OF DECEMBER, 1996 KODIAK ISLAND BOROUGH % /i e M. Selby, Borough 1A. 4 14_ Ji/yLC� Robin Heinrichs, Presiding Officer Jer Ordin.ee No. 96-19 s,e 13 of 13