1987-28 Amending the KIB Code by Adding Chapter 3.26 Sales Tax Providing for the Levying and Collection of a Sales Tax and Penalties for Failure to CollectKODIAK ISLAND BOROUGH
ORDINANCE NO. 87 -28 -0
AN ORDINANCE OF THE KODIAK 'ISLAND BOROUGH AMENDING THE KODIAK ISLAM
BOROUGH CODE BY ADDING CHAPTER 3.26 SALES TAX PROVIDING FOR T'IE LEXYING AND
COLLECTION OF A SALES TAX AND PENALTIES FOR FAILURE TO COLLECT.
WHEREAS, the State of Alaska has made substantial ..ndiog :eduction
and may pass further r e duc t :cns in .,_:nu faf IScdla :. L . nd prd;: ams >uch as
education, municipal assistance and revenue sharing, and
WHEREAS, the Kodiak Island Borough is responsible f/or more than $28
million of programs in education, health and genera! p :ogra. s. and
WHEREAS, about S20 milt an of the revenue to au port ttiese programs
has come from the State of Alaska while about S1.8 mill is collected in
local property tax from Kodiak I land 3orough real aa`tlersonal property
owners, and
WHEREAS, it is the desire of the As semb•Ly t determine if the Kod1a
Island Borough voters would prefer to spread the anticipated tax increases
across more people with a sales tax or continue to use all tax revenue from
property owners only, and
that
WHEREAS, the ordinance was adopted _ita ing the sales tax question o
the ballot for the regular election of October 1987 for the voters to
ratify or defeat the levy of a sales tax.
ATTEST:
By
Borough Cler
NOW, THEREFORE, BE 1' ORDAINED - by !he Kodiak Island Borough Assembt
Section 1: This ordinance 'Co a permanent and general nature and
shall become a part of the Code of 0rAin noes.
Section 2: A new chapter, 3/26, Sales Tax, is hereby enacted.
Section 3: This ord •nVye ecomes effective on January 1, 1988 if
passed by a majority of the voters o :ng an the question at the regular
election of October 6. 1987.
PASSED AND APPROVED ..t.nr/s _ day of 1387.
KODIAK ISLAND DOROUCH
By
Borough Mayor
Sy
Presiding Officer
First Readin Approval Date: 3 September 1987
Second Read/n9, Public Hearing, Approval Date:
Adoption D ter
Effective ate: January 1. 1988
Section
3.26.010
' 3.26.020
3.26.030
3.36.040
3.26.060
3.26.060
3.26.070
3.26.060
3.26.090
3.26.100
3.26.110
3.26.120
3.26.130
3.26. 140
3.26.160
3.26.160
3.26.170
3.26.110
3.26.190
3.26.200
Definitions
Levy of ales tax
General exemptions
Exemption of sales for resale
Senior citizens exemption
Certificate of exemption
Revocation of certificate of exemption
Installment payments
Accrual and collection
Allocation of sales tax proceeds
Tax collectors -- registration certificate
Failure to obtain registration certificate
Addition of tax
Assumption of tax prohibited
Tax schedule
Maximum taxable sale
Title to tax proceeds
Sales tax returns
Credit for taxes
Administrative costs and reimbursements
3.26.210 Penalty and interest
3.26.220 Determination of exemptions
3.26.290 Failure to collect taxes
3.26.240 P Ion of records -- collection of arrsars tax
3.26.260 Failure to f1Is return -- estimated ax
3.26.260 Returns confidential
3.26.270 Corrections of errors on tax ret rns
3.26.260 Refund of overpayment
3.26.290 Recovery of taxes
3.26.300 Lien to secure payment of tax
3.26.310 Foreclosure against real property
3.26.320 Collection by distraint and sale
3.26.330 Prohibited acts and penalt s
3.26.340 Three year voter review
3.26 010 Definitions. As used i this chapter the following definitions
shall apply:
(a) "Buyer or "purchase" eons a person who acquires an interest in
real or personal property, or tie right to use real or personal property, or
who acquires services for cons ,(deratlon.
(b) "Charitable organiz Lion" moans an organization having as its
primary purpose relief of th poor and distresse or of the underprivileged.
(c) "Finance director' means the tax collector of the Kodiak Island
Borough or as authorized 'dent of the Borough.
(d) "Rental" means {ermitting the use or occupancy of real or personal
property for considuati /n.
(e) "Residential Snit" means one or more rooms and • single kitchen in a
dwelling designed as a/unit tor occupancy by not more than one family for
living or sleeping purposes.
(f) "Residential uses" means for use within • residential unit.
(g) "Sale" me ns • transfer or exchange of any property. of every kind
and description, o the right to use or occupy such property, for
consideration.
(h) "Sales rice" or "charges means the consideration whether money.
credit, or other property or interest in property, without deduction for
delivery costs taxes, or any other expanse. The receipt of property or an
Interest in pr party as consideration, the "sales price* or "charge" shall be
based on the rket value of the property or interest In property.
(1) " a saagent. Iler" means p n, whether acting as • principal, agent. or
broker, wk sails, 1 , or rents real or personal property or provides
services t another for consideration.
CHAPTER 3.26
SALES TAX
• ) 26 020 levy of sales to ;. (a) A sales tax of one (11 percent of the fates
price or charge is levied on all sales. rentals, and services made within the
borough.
(0) For
purposes of the tax levied by this section, a sale of tangible
personal property Is made within the borough if:
1. The sale is made by a Desi seas located within the bor oNgh and
delivery occurs within the borough,
2. The sale is made by • business located within the bo ough, the
order is received or solicited within the borough or payment is r ceived
within the borough. and delivery is made to • purchase within th Kodiak
I Island borough, or
3. The sale Is made by a business located outside o(/ the borough as
• result of solicitation inside of the borough and payment or delivery occurs
within the borough.
(c) For the purposes of the tax levied by this sectlo services are
made within the borough if, regardless of the location of • business
rendering the services
1. The services, or any essential or substaatib1 part thereof, are
Ithin the borough, or
2. The order for the services is solicited o received within the
borough or payment is received within the borough. the services are rendered
by • business maintaining an office, •pent, or employ • within the borough.
and the services benefit or directly relate to any p rso•. property, or
organization within the borough.
(d) The sales tax on rentals Is applicable f r all real property located
within the borough and to rentals of personal pro arty from a business within 1
the borough and from a business located outside he borough under
circumstances which authorize the imposition of /a sales tax were the property i
to have been sold rather than rested.
3 26 090 General exemptions. The following classes of sales, rentals, and
services aro exempt for the tax imposed by is chapter:
(a) Casual and isolated sales and re ale of personal property. and
services not rendered In the regular sour of business of the seller.
(b) Medical services performed by l ceased medical doctors, dentists.
osteopaths. optometrists, psychiatrists psychologists, and chiropractors,
sales of medicinal p ions and dr s prescribed by medical doctors, and
hospital services.
(c) Sales. rentals. and service to religious and charitable
orgaolzatlons as defined in subs•eti ns S01(c)(11, (3), and (4) of the
Internal Revenue Coda. for the tend ct of regular religious or charitable
functions and activities. and not or the support or maintenance of the
I membership or for commune living.
(d) Salts of food in schoo cafeterias and lunchrooms that are operated
primarily for students.
(e) Sales and services b non profit schools and student organizations
within schools for support of the school, organization, or extracurricular
activities or events.
(1) Sales rentals. an services to the United States, the state of
Alaska, and any agencies o political subdivisions thereof.
(g) Dues or fees to, tubs, labor unions. and fraternal organizations.
(h) Subscriptions y newspapers and periodicals.
(1) Sales of •nlmwi food. seed, plants. and fertilizers to farmers or
ranchers for farm use.
(j) Sales of Ins rance end bonds of guaranty and fidelity.
(k) F 1 ch gee.
(11 Transport• ion charges of commercial airlines, steamship companies.
or air or boat char or operations.
(m) Services rendered by banking or savings and loan institutions or
credit unions. /
(n) Services rendered by an employee to an employer in the normal course
of employment. /
(o) Sated. rentals, and services which the borough Is prohibited from
Taxing by the constitution or laws of the United States of the state of
Alaska.
(p) R tail sales in dining rooms or cafeterias of food furnished by
nonprollt resolutions under programs wholly or partially supported by
men funds.
(p)/ N y and bebysitting services.
(rl/ Long distance transmission of telephone and telegraph messages.
(0 Sales of heating fuel exclusively for residential uses (not to
include fuel used in or on watercraft).
(t) Sales of electrical service to exclusively residential unite.
(u) Sales of propane gas exclusively for residential uses (e.g., ,
cooking, water heating. heating, clothes drying).
(v) Sale of fuel used in stationary power plants that generate
electrical energy exclusively for privets residential consumption.
(w) Sales, rentals, and services to nonprofit associations or /
organizations operated primarily for the purpose of planning, promoting, and
conducting organized group activities for participants who are 16 years of age
or less.
(x) Charges for garbage /refuse collection for garbage /refu /• generated
exclusively by residential use.
(y) Sales of water and newer utility services by ■ gem/mental unit.
(z) Rentals and services of ports and harbor facilities owned and
operated by a government unit.
3 26.040 Ex•motion of sales for resale. The following sages of property end
services are exempt for the sales tax:
(a) Sala of properly to wholesale dealers !anted in the borough who
deal in property of the type sold, for the purpose of •,subsequent sale by
! such dealer in the borough.
(b) Seim to retail dealers located in the born h. who deal in property
of the type sold. for the purpose of a subsequent rat 11 sale by such dealer
In the borough. which sale will be subject to the to imposed by this chapter.
Cc) Sales of tangible personal property to a arson engaged In
manufacturing within the borough of products sold rim•rlly within the
borough, which property is converted into or bsco es an ingredient or
component part of the manufactured product or a ontalner therefor, or
otherwise enters directly into the manulacturin process.
(d) Sales to a building or construction contractor or subcontractor. for
use on a project within the borough of building materials, supplies. and other
tangible personal property to be incorporat•4/ or use as component parts of a
completed structure, driveway, landscaping, nd other portions of the project
and services utilized directly in the const motion, erection, landscaping. $n
similar work on the project. This •x•mpti n shell not apply to tools,
equipment. fuel. clothing, food. and simi er Items of property utilized but
not incorporated into • project.
3 26 060 Senior citizens exemption a) A person sixty-five years of age or
older who has resided in the Kodiak I land borough for ■ continuous period of
30 days or more may obtain • senior Miens salsa tax exemption certificate
by submitting • completed applicati n to the riming director on a form
provided by the borough. The appl'cation must be signed by the applicant
under oath and shall contain Infor •Hon relating to the applicant's
residence. marital status. rent* or ownership of occupied dwelling, persons
occupying the dwelling. and oth information reasonable nee esssry to
determine the applicant's •ligi pity and monitor the use of the exemption
certificate. The applicant s 11 also submit for inspection and copying ■
birth certificate. or other a Idence determined by the finance director to be
adequate, to establish the • plieant's age unless the applicant has previously
established eligibility thr ugh the asssswr 's office for senior ei tizea
property exemption. The • emotion certificate shell be issued without charge
in the name of the •pplle nt and shall be valid for • period of 3 years.
(b) An ex•mptioe c rtificate 1 who is prevented or
impaled from p I1 making purchases or payments by • physical or mental
infirmity may designer not more than two other persons who shell be
authorized to utilize the certificate when making purchases and payments on
behalf of and for th sole use and benefit of the certificate holder or the
certificate holder' spouse.
(c) No perm may utilize a senior citizen tax exemption certificate to
purchase or acquit property or rentals that are to be consumed or utilized by
a person or perm s other than the certificate holder, the certificate
holder's spouse, a dependent of the certificate holder, or another person or
p ersons who wou d be qualified to have • senior citizens exemption certificate
'issued to th under this section. As used In this action, •dependant" means
a child of th certificate holder or the certificate holder's spouse who
resides with the certificate holder when not attending school and who racily'
more than o e -half of his or her support from the certificate holder.
(a) arsons making sales or rentals to or for the benefit of • senior
citizen w ich are exempt from tax under the provision• of this section shall
confirm • identity of the person or persons pr•s•nhag an exemption
certlfl te. 11 not personally known to them, by requesting Identification and
shall Main records of each such exempt sale with an appropriate reference
to th senior citizen exemption certificate number. If the person making the
WO or rental has reason to believe that it Is not for use or consumptigii of
a senior citizen or other qualified user, Deems* of the volume, type of/
purchase, of other facts, that person shall promptly report the possib1
fraudulent use of the exemption certificate to the borough finance director.
The finance director shall invastigate the sale or sales, and if the , finance
director determines that the exemption certificate is being abused, / the matter
shall be referred to the borough mayor who shall conduct such furth,ir
investigation as is determined nee easary and present the facts to (he assembly
for authorization to initiate prosecution or revocation action, of both.
(e) Senior citizens' *emotion certificates shall be subject to
revocation as provided In section 3.26.070 of this chapter.
3.26 060 'Certificate of exemotlo6. (a) A potion entitled t the exemption
under section 3.26.036 or subsections (c), (i) or (w) of sec ion 3.26.030
shall apply to the borough for • c•rtifisete of tax esempti n which will be
Issued, without charge, to qualified persons. The applies Ion shall be
submitted on • form provided by the finance dir•cter and all contain the
name. address. typed of organization, the section under ich the exemption is
claimed, and such other information as Is required by t finance director.
Duplicate certificates will be Issued on request.
(b) A construction contractor or subcontractor r, questing exemption
under subsection (d) of section 3.26.035 must apply the borough for •
certificate of tax exemption which will be issued, thout charge. to
qualified licensed contractors or subcontractors. he exemption shall be
valid for a period of one year, at the and of whit an accounting of the use
of the exemption shall be made to the finance dir ctor reflecting each
building project and the cornet location of the project by legal description
and any other commonly recognized address from Which services, materials,
supplies, or other property are purchased or obtained.
(c) The certificates of exemption shall' be valid for * period of one
year and the expiration date shall be print* on the fact of the certificate.
Exemption certlflc*tos may be renewed annua ly, without charge, by completing
an application form containing information required to asssss the continued
existence of the exemption.
(a) A csstificat• of tax
'empties may be revoked by the boroug mayor for any of the following acts or !
omissions,
1. FalatficatIos of any s tomtit or information in the application
for certificate of •x•mptlonr
2. Utilization of the t - exempt certificate for the purehas• or
acquisltIos of noo•a•mpt property, rentals. or srvisesl
3. Knowingly or negli• ntly permitting or authorizing the use of
the certificate by a person oth• than an suthoriz•d agent or employes of the
person or entity to whom the ce tificat• was issues.
CIO Prior to revocation 1 • certificate, the holder of the certificate
shall be provided with notice of the alleged violation not less *has tan days
prior to the proposed affect v• Oat* for r•voc•tlon of the exemption
certificate. The person or entity to whom the certificate was Issued may
request a nearing before to borough mayor regarding the alleged violation by
filing • written request lth the finance director prior to the affective data
for revocation. If requ sted, the hearing shall be held within twenty days
•ltsr the date of r e n a l .1 of the request, and the exemption certificate shall
not be revoked prior t• the date of hearing.
(e) A decision •f the borough mayor revoking an exemption certificate
may be appealed to t • assembly by filing • written notice of appeal with the
finance director wi in tan days after receipt of the decision. The hearing
on the appeal shal be scheduled before tea• assembly at • regular or special
meeting held with' thirty days after receipt of the notice of *ppeel. The
assembly may, in is discretion, hoar the matter filthier on the record or de
novo. If the •p eal is hoard de novo, no evidence may be presented before the
assembly which as not presented belor* the borough mayor.
(d) If exemption certificate Is , • new certificate may not b•
- issued to the same person or entity for • period of two years from the data of
revocation.
(el T • revocation provided by this section is in addition to any other
penalties rovided by law for the violations.
When the payments for a purchase, rents', or
service ars mad* on an Installment basis. the •afire sales tax should be
0011 *0 •d from the down payment, or, if • down payment is not made or is
insufficient to pay the tax, then the entire first installment payment of/
payments until the tax is paid.
/
3 28 090 Accrual and collection. Sales taxes imposed by this chapter / du•
and payable by the buyer at the time of payment for the purchase, sir Vice. or
rental and are delinquent if not paid when due. Every person makin sales or
rentals or rendering services that are taxable under this chapter s all
collect the taxes from the purchaser at the time of the sale, rent 1. or
service or, with respect to credit transactions. at the time of e• Il•ction of
the sale price. rental, or service fee and shall transmit the mo ey collected
on • quarterly basis to the borough.
3.26.100 Allocation of sales tax oroceeds. One hundred pare nt (100%) of
sales taxes collected under this chapter shall be allocated 0 support of the
Kodiak Island Borough school district.
3.26 110 Tax collectors-- r•a1stration certificate. (a) 11 persons engaged
in selling or renting property or rendering services subj at to the tax
imposed by this chapter not currently registered with th Kodiak Island
Borough shall 111• an application for a certificate of •gistratlon with the
borough finance director not later than May 16. 1987. r the dote of
commencing business in the borough, or opening of • p ace of business in the
borough, whichever first occurs. An application for • new business not
previously registered to collect sales taxes shall e accompanied by a one
hundred dollar deposit which the registrant may re over by a deduction from
the remittance submitted with the first quarterly return filed or, if that
return Is Insufficient. the balance shall be ref nd•d. If an applicant has
established credit with the borough, the financ director may waive the
required deposit.
(b) Upon receipt of a properly executed application, on • form provided
by the finance director. accompanied by the required deposit, the finance !�
officer shall Issas the applicant a certllle to of registration, stating the
address of the place of business to which I is applicable and authorizing
such person to collect the sales tax. The certificate shall be prominently
displayed at the place of business named n the certificate or. if there Is
regular place of business. the certifies • shall be attached to the stand.
truck. or other merchandising or servlc device.
(c) The certificate of registrat on is lgsable and
le. and must be •urrend•.ed to the finance director by the person',
or entity to whom it is issued upon &lotion of business at the location
named In the certificate. If the b iness Is continued at the same location
but there is a change In Its busin s form, the certificate holder making such
change shall surrender the old ear iticat• to the finance director for
caacell•tlon and the successor or anization shall apply for a new certificate .I
of registration. Upon receipt o such application properly executed. a new
certificate bearing • new numbs will be issued to such successor.
(d) When there is a chin a of address for the certificate holder's place
of business, a new certifleat of registration is required, bearing the same
registration number, showing the new address.
(e) An applicant for new certificate required to reflect a change in
business form or a change •f address for an existing certificate holder is not •
required to post • d•posl with the application.
9.26.120 Failure to obain reaistration certificate. It shall be unlawful
for any person to eng■ In, or continue In, business within the borough or to
conduct activities wit in the borough other than casual or occasional sales,
unless and until such person obtains a certificate 01 registration. In the
evert the fl i actor ■scertaia& that any such person is sagaging In. or
continuing in, bust ass within the borough. other than casual or occasional
sales, without a e rtlficate of registration. one or more of the following
remedies may be s ught:
(a) Conduc • special audit of such person's records and make • demand
upon such parse!' to obtain • sales tax certificate, In which case such person
rho has engage* in business or activities within the borough without •
certificate shall pay a special fee to reimburse the borough for the expense
of the audit q 'which fee shall be the Iesser of the sum of one thousand dollar
or ten pore y t of any tax found to be due. However, the lee may be waived
the dlscret/fon of the lineage director for good Mlle shown. The finance
director shall also assess any delinquencies, and applicable penalties and
interest. //if any, against such person, if such person •ngaped in sales or
other tr`asestlons which were or are subject to the borough sales tax.
(bI Report the facts to the borough attorney for appropriate action.
3 26 130 Addition of tat. (a) The tax collector shell add the tax impos
by this chapter to the price or charge, showing the tax as a separate and
distinct item. The tax imposed on the sale of more than one separately rived
Item may be shown as a total tax on the aggregate price of all items par Chased
and d elivered at one time. Tax levied by a city shall also be added t the
'price as required by the applicable city code.
(b) The owner or other person providing products or services ty r ough •
.coin- operated vending or amusement machine shall collect the tax ley'ied by
' this chapter and may include that tax in the fee charged to operata/ the
'machine. The allocation of the payment required to operate the mgEhine,
'between the purchase price and sales tax, shall be explained by n•tic• or
- marking on the device.
(c) A business selling 9 gasoline or diesel fuel delivered o the
!customer's vehicle in bulk may include the sales tax as an •xt a charge in the
;metered price for the fuel If • notice is posted on the meter or pump, or
otherwise prominently displayed, explaining the allocation o the total cost
'between the charge for the fuel and the sales tax.
(d) A business engaged in the sale of b onsumption on the
premises may, in lieu of adding the tax as a separate its , include the tax
iimposed by this section in the price for the beverage. notice shall be
''pr0 10.11 ly displayed In the establishment dispensing t e b pas explaining
!t he allocation of the total price between the charge 1• the beverage and the
Isaias tax collected.
(e) A business providing for -hire passenger v• el• transportation
iiserviees may, in lieu of adding the tax as a severe item, include the tax
.imposed by this chapter in the charge for the tran ortatton. A notice shall
':be prominently displayed In each for -hire pssseng vehicle explaining the
' allocation of the total charge between transport• ion charges and the sales
,itax collected.
(f) When authorized by this section to be /included in the price or
charge for a product or service, the tax to be collected and remitted shall be
determined by multiplying the gross receipts rom the services or product by
ilbe provided by the borough.
06 and dividing that product by 1.05. Noti es required by this section shall
Cher a•
3.26.140 Assumption of tax prohibits() o person may advertise or state to
the public, or to any buyer. tenant, or onsumer of property or services,
directly or indirectly that the tax Imp sod by this chapter or any part
thereof will be assumed or absorbed by hat person, or that it will not be
added to the sales price or chugs, or that It will be refunded; nor may any
person assume, , or fail to se r•tely stet* the tax to the buyer,
tenant, or consumer, unless othsrwis specifically authorized by this chapter.
H 29 150 Tax schedule. Thu amours of tax to be added to the purchase prices,
rental, or service charge shall b determined In accordance with the following
schedule In addition to any sale tax levied by • city where the sale is
oeeuringr
Tax
Under 49 cent Nona
9 .60 through /•1.49 6.01
1.50 through 2.49 .02
2.50 through 3.49 .03
3.50 and over Continuo as same scale.
3.25.190 Maximum taxayta salt. (a) If the sales price of an Item or items
or the charge for rental of any property or psrformaacs of any service exceeds
five hundred dollars for a single transaction, that portion of the price or
charge In excess of Aloe hundred dollars shall be exempt from the tax levied
by this chapter. i
(b) In deterOilning the maximum tax payable with regard to • single
transs*Hon for the rendering Of services On a substantially regular basis,
which services •75 generally repetitive In nature and are to be performed over
a period Of tim/ under a contract, each period 01 gayest Or partial payment
under the costs shall be deemed • ssp•r•te service t ion. The
maximum tax payable shall be applicable to each deemed service transaction
with tax payafsntg to accrue and become payable at the time of filing the next
quarterly return to be submitted following receipt of payment for the service.
(c) Nor purposes of computing the maximum tax, a rental of property for
• period a excess of one month shall be deemed as • series of rentals with
each ten I transaction terminating as • rental payment is made. The maximum
sales tqW payable shall be applicable to each deemed rental with tax payments
to accrue and become payable at the time of filing the next quarterly retur
to be submitted following receipt of the rents'.
3.26 170 Title to tax proceeds. The title to the taxes collected pursuant to
this chapter shall vest in the borough upon collection by the tax colleftor
Title to taxes collected on behalf of any city within the Kodiak 'sten/
Borough shall vest in each respective city upon collection by the finance
director. Cities within the Kodiak Island Borough may be authorized to
continue to collect their own sales tax so described in their code '1 the
finance director determines such an authorization to be in the bas interest
of the city and the Kodiak Island Borough.
3 26 160 Sales tax returns. (al Each person who sells or ren s property or
renders services taxable under this chapter in any quarter end g March 31,
June 30. September 30, and December 31 shall, on or before th last day of the
month following the end of each quarter year, or April 30, J y 31, October
31, and January 31 respectively, complete, sign, and file wi h the borough a
return for that quarter, upon forms furnished by the borou , setting forth
the following:
1. The amount received from all sales, roots's, and services made
or rendered within the borough'
2. The amount received from nontaxable sales rentals, and
services, with • brief explanation of the nontaxable s *tot
3. The amount received from taxable sales, rentals, and services'
4. The amount of tax attributable to the 'sable sales, rentals.
and services'
6. The taxes collected'
6. A listing of rental propsrty(i•el b street address showing the
total number of units end the number of units rated for each month of the
reporting period' and
7. Such other information and suppo tiag papsra as the assembly may
require In the reporting form.
(b) The taxes collected shall be remit •d with the reporting form otter
deducting any edmin)strative fees that may allowed by section 3.26.200.
(el If the last day of the month Is Saturday, Sunday, or legal
holiday, tax returns and remittances shal be considered filed on time if
delivered or postmarked on or before the est day of that month.
(d) A p making salsa or rent s or rendering services within the
borough shall make • return, even thou none of the reported transactions are
taxable, unless the p le a linens d medical doctor, dentist. osteopath.
optometrist. chiropractor hospital, sllgious or charitable organization. or
club, or • labor union.
(s) A person who falls to tim ly comply with the provisions of this
chapter relating to the filing of uarterly reports and remittance of taxes
collected for any ono quarter dur ng a calendar year shell, if required by
written notice from the finance ir ector, the the required reports end
transmit collected sales taxes onthly until such time as the finance director
determines that a wll ling nd ability to comply with the requirements of
this chapter has been est•bli •d. Monthly reports and remittances shall be
due are the last day 01 each ••nth following the month of collection. Any
p may. upon notificeti•n to the finance director, file reports and
transmit taxes monthly.
(1) A psrsoo doing sine's within the borough for • period of time that
is, or can reuoa• ex sated to be, less than six moaths in duration shall
file sales tax returns d remit taxes on a monthly basis as provided in
subsection (el of this tattoo.
(g) A final sal tax return shall be filed sad the tax due remitted
w ithin fifteen days ter the date of selling or terminating a business. The
purchaser of the bus assn shall withhold • portion of the purchase mosey
su1110 1 ant to pay - •y salts tee. penalties, And interest that may be due until
saber displays a •celpt from the borough evidencing total payment of the
tax, Interest, an, penalties due. If the purchaser falls to withhold the
required sum fro the payment due to the seller, the purchase shall also be
liable for the seas, penalties, and interest owed by the seller to the
borough.
A person who has collected and remitted a ten on
• sale, *hi h lax is subsequently determined not to be duo because of refund
le granted for returned merchandise, payment is refused on a check received in
conjunct' /n with • sale. or similar circumstances, may take • credit against
future taxes. proper documentation shall be mode available by the tax
collsctlr, on request. to substantiate the credit taken.
• 3.26 200 Administrative costs and reimbursements. To compensate seller/
renters. and persons rendering services for keeping the sales fax 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 of the amount of
the tax collected, and that amount may be deducted when making remittances'
provided that the reports and remittances are received on or before / the due
date for such reports and remittances. A person filing • report or/ remitting
taxes collected after the due date forfeits the right and claim t' the fee
provided by this section and shall remit the entire tax due. /
2_.26.210 pe le
collected on or before the due date ) shall• pay, who fails to he t taxed
penalty of five pay, in addition for to (o sex hue, •
percent o} the tax that is then due and unp•i f each month
'i or any fraction of a month during which any part of the tax •mains unpaid
until a total penalty of twenty percent has accrued, which *natty shall be
I added to all returns until the tax, penalty, and interest ave been paid. For
the purposes of this section, partial payments shall be c edited first to I
penalty and interest and then to the lax oblig•tio■ orig'nall y due.
(61 T axes that are not remitted to the borough wh due shall drew
interest from the date of delinquency until paid at th rate of fifteen
percent per year. Interest shall not accrue on the t
•sauced by subsection (a) of this section, but shall accrue the penal
civil
penalty esseaaed by section 3.26.230.
21.26 220 Determination of exemptions. (a) Every sal• of
property
and every rental made within the borough or rends ed or received by a person sry
;! within the borough, unless explicitly exempted b ordinance, is presumed to be
subject go the tax imposed by this chapter
A
l I who claims an exemption under a of this chapter for which r a service
certificate of exemption i• required shall drepl•y the certificate at the time
of the purchase or rental and the entitle • number shall be noted on the
c oce pt. invoice, or other evidence If the ran section.
. Cc) A purchaser. tenant, or ter p son obtaining property or services
, who believes the tax has been , for refund within thirty days after I In rror may make • claim to the borough
h• t of
(d) If the finance director defile • r•fund the tax, the taxpayer may
appeal to the borough mayor by filing written notice of appeal, within ten
days alter the finance director's des lion, setting forth all facts relating
to the claimed exemption. The borou -h mayor shall provide an opportunity for
• hearing within thirty days after • receipt of the notice appeal.
(a) A erired by this
collect sales taxes levied, who f 11* to collect such taxes on taxable•p ter to
transaction•, shall th should have been collected, as •efarmined by an audit. double the tax that
(b) If any of the folio op dsfeases are established, the civil penalty
imposed by this section shall be waived:
1. The securing, n good faith, of a certificate of exemption or a
statement of eligibility to exemption from the person against whom the tax
would have been levied,
2. proof of ■ *lief, based upon advice of legal counsel or the
borough finance director that the cal•, rental, or rendering of service was
•j not subject to the tax *vied by this chapter, accompanied by proof of
notification In writin• to the borough mayor based on such belief prior to or
immediately following he transaction'
buyer. 3. A roes • able attempt. in good faith, to collect the tax from the
i (c) A purchsefr, renter, or other person obtaining property or services
who (•Its to pay t • tax Isel by th is chapter on a taxable transaction shall
! pad. Ith civil penalty of double the taxes that should have been
(d) The c vil penalties imposed by this section shall be in addition to
i any other clvl or criminal penalties Imposed by this chapter.
parses r•qu red by this chapter to collect and remit taxes shall ) hp B and
D ea table records of the gross salsa. rentals, or service receipts,
together th bills of sale and other pertinent records and documents which
may be n essar to determine the amount of the tax due under this chapter and
to subs ntiate the information provided In filed returns. The records
required to be maintained shall be pres•rvsd for three 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 env;
in reviewing or auditing the records of any taxpayer required to make o rstu.
under this provision so this chapter. The borough shall give written notice of
intent to conduct an audit under this section not less than five days prior to
the audit.
Cbl Collection of arrears tax by the borough shall be limited/to the
period of three years prior to this 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. /
B 26 260 Failure to file return -- estimated tax. If the bor /ugh is unable to
ascertain the correct tax to be paid by • seller because of /the failure or
refusal of the seller to file a return. keep accurate risco ds, or allow their I
• inspection, or because • return has been falsified, the b rough may prepare an
estimate of the tax due based on any information that ma be available.
. Notice of the estimated tax shall be provided to the sal er and shall become
final for the purpose of establishing the tax liability unless the seller,
within thirty days after receipt of notice of the •sti tad tax, files an
accurate return supported by records determined by th finance director to be
satisfactory. establishing a lesser liability.
3 26 260 Returns confidential. Except In connect on with official
investigations or proceedings of the borough, whe her judicial or
;I administrative, involving taxer due under this c apter, no officer, employee
or agent of the borough may divulge any information disclosed in a report or
return tiled under this chapter. The prohibition of this section shall not
prohibit the preparation and use of statistic," summarise of sales tax data
that do not disclose the identity of any per On filing reports required by
this chapter.
. If the taxpayer makes an
error or errors In computing the tax on rehire. the finance director or
authorized agent shalt correct such erro or errors end immediately notify the
person filing the return by ordinary ma 1 that such correction has been made.
Any additional tax due, together with pplicable penalty and interest in
accordance with section 3.26.210, for which the taxpayer becomes liable shall
be payable Immediately by the taxpay r. 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 shill authorize • refund in accordance with
section 3.26.260.
i 26 260 Rtiu•d of overpayment The finance director shall refund
overpayment of taxes brought • ut by mathematical errors in the return or
reports filed by the person r Ming the taxi computational made by
the remitter or borough per, net with respect to said return or reports'
duplicate payments by remits ri or any overpayments mode by • person filing a
tax return that may be date mined as • result of as audit of such person's
records; provided. however that in no event shall the remitter of sales taxes
be entitled to a refund 1 r overpaymeet of sales taxes where the overpaid
taxes have actually been collected by said person. In the event the amount of ,
overpayment is one hund ed dollars or lose a cash refund may be authorized at
the discretion of the inane* director. In no event shall there be • refund
for overpayments that were made more then three years prior to the discovery '
of the overpayment b the person filing the returns or the finance director or '
authorized agent.
Taxes due but not paid may be fee oesrsd by the .
In an ac on against the buyer, tenant, or recipient of services if
that person has ailed or refused to pay the tax oh request by the seller or
submitted a fel s certificate of •xempfi o•. Taxes collected but not
mitted a taxes not requested or demanded by the person charges with the
duty of colls sing of tax may be recovered by an action against the person
soiling or rienting the property or services.
3 26 300 %rion to secure Dement of tat. Ca) The tax imposed by this
chapter, ogether with any penalty and interest that may accrue. shall
constitu e • lien in favor of the borough upon all of the property, real and
' p e. and any interest in such property owned or held by the person or
persons required to pay the tax. The lien arises at the time of delinquency
and continues for • period of two years from the data of notice to the borough
of the delinquency unless an action is initiated during that period to/
foreclose the Ilan or the lien is satisfied by distraint and sale. /
(b) The date of notice to the borough of delinquency shall be tfie first
of the following events to occur:
1. A required return is filed accurately reflecting the fax due and
the return is not accompanied by the required remittance.,
2. A notice of estimated tax is provided to a /
and the thirty day period for filing an accurate return has 'coifed.
borough
(0) The Ilan created by this section is not valid against /a mortgagee,
deed of trust beneficiary, or other person holding • lien or sicurity interest
i in the property. or • purchaser or judgment creditor. who acq ires an interest
in the property prior to filing by the borough of a notice o lien in the
office of the Kodiak district recorder.
3"26.310 Foracln.,,.. ao _ r
I and penalties created by this chapter may be foreclosed, hen tax
authorized interest by
the assembly, by eommoneement of an action in the super3 r court pursuant to
the proesdur• set forth in AS 09.15.170 -220.
3.2L320 Coli ,: -- .
(a) The
I taxes, with interest, penalties, and other addition' amounts p t
i tldet
law, by distraint and sale of the a t pay by
tom, interest, addition of the p r who liable to pay the
penalty or other additional amours who neglects or refugee
to pay them within ten days after receipt of noti -• and demand for payment.
(b) In case of neglect or refusal to pay t sea or deficiencies as
provided In this section, the finance director ay issue a warrant authorizing -; any pollee officer to lev upon a iz•, and aeV1 any property, except exempt
property, belonging to the period for the payment of the amount due, with
interest and penalty. when distraint is mad as provided in this section, the:
police officer charged with th asrrl esa sh i make an inventory of the
property served and leave a signed copy of hat Inventory with the owner or
poasasehr of the property. or at the dwell ng or usual place of business, if a
person of suitable age and discretion can be found. or if the taxpayer is •
corporation or other type of organ izatio with an officer, manager, general
agent. or agent for process, with a not tion of the amount demanded and the
time and place of sale.
If (c) The polies officer shall i diately publish • notice of the time
j and place of sale at public auction. together with a description of the
if property distraln•d, in a nospaper .ublish•d in the borough and post a copy
it of the actin* at the post office n crest the place where the sale is to be
made.
II (d) The time of sale shall
days from the date of the notifi
11 property. and the pl
miles from the place of makln
time to time in the discretto
if thirty days after the date s
(a) The property dlst
ch. before the salt, p•ym• s of th e amount due Is made to the police officer
ith the collecti.n, together with the fees and other charges.
(f) The polies olfvicer conducting the sale under this section shall give
to the purchaser a cert of sale on payment In full of the purchase
price. The certificate 'of sale:
facie evidence of the right of the police officer to
elusive evidence of the regularity of the officer's
the sale,
ors to the purchaser all right, title, and interest of the
o the property sold,
• the property consists of stock, is notice, when received.
a to record the transfer on their book• and records in the
f th
• not less than fifteen or more than sixty
anon to the owner or po•ausor of the
for the sale shall not be more than five
the distraint. The sale may be continued from
of the police officer, but not for more than
stifled In the notice.
tined shall be restored to the owner or poasaas
Is prim
it make the sale, and c
proceedings In maki
2. Iran
delinquent in and
S. Wits t
to the eorporati
same manner se s oek qr t ransf•rrsd or assigned by the
or 9 Y party whether
the stock In lieu of an original I -cancelled or ot1 and prior certificate. which is void, whether
s. Where the subject of the sale Is security or other evidence of
debt, Is a odd sAd valid receipt to the pson holding It, as against ■
. Pe non Aol in er or claiming to h old ion of the security or other
;I evidence of debt.
i (91,' If property seized and sold Is not sufficient to satisfy the claim
of the yorougb for which distraint or seizure is made, the police officer may,
thereatjter, 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 distra
upon which • levy Is made, shall, upon demand by the police officer making ,ne
levy, surrender the property to the police officer, 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 to
surrendered, but not exceeding the amount of the taxes or deficiencies,
including penalties and interest for the collection of which I{vy in mad*.
together with costs and interest from the date of the levy.
(1) All persona shall, on demand of • police officer a out to distraint
or having dlstrained on property or rights of property, exh /bit all books
containing evidence or statements relating to the property / liablt to distrain
for the tax due.
(J) The provisions of this chapter are not exclusi but are In additions
to all other existing remedies provided by law for the forcement of • levy
and collection of taxes of the borough.
3 26.330 Prohibited acts and oenaltits. (a) No per on may:
1. Fail or refuse to file • completed tax return required by thia
chapter, upon demand, or falsify any material state ant in that return;
2. Fail or refuse to collect taxes leaf d by this chapter and remit:
those texts to the borough as required;
3. Conduct any business In the boroug relating to sales, rentals,
or services subject to taxation under this chap er without first applying for
and obtaining • certificate of registration to oollsct the taxes imposed on
salts, rental, and servicss1 or
4. Falsify any portion
exemption.
(b) A person who violates a prohlbiti n contained in subsection (a) of
this section is, upon conviction, punishab t by • fins of not more than three
hundred dollars or Imprisonment for a ter not to exceed thirty days, or by
both.
(c) A person who violates any oth r provision of this chapter not
specifically set forth in subsection ( ) of this section ie. upon convictio.
punlehablt by • fine of not mar* than, wo hundred dollars.
of an appli cation for a certificate of
3 26.340 Thrall near voter review. he question of continuing to levy and
collect the sales tax described in his chapter shall be put to the registered:
voters of the Kodiak Island 6oroug, every third year at the regular election.
KODIAK ISLAND BOROUGH
Codes for Taxable Activities
July 1, 1987
A TI ITY
7310 Advertising
7900 Amusements
7333 Artists /Photographers
5813 Bars /Package Stores
7230 Beauticians
7390 Business Services'
2091 Canneries -
4800 CommunicatioNs
1500 Contracting'
7600 General Repair Services
2000 Grocers
8000 Health Services
7010 Hotels /Motels
8100 Legal Services
6700 ,Miscellaneous Services
5912 / Pharmacies
7299 Personal Services
6610 Rentals
5812 i Restaurants
5300 / Retail Sales to Consumers
7540 Service Stations
4120 Taxi Cabs
4930 Utilities
7530 / Vehicle Repairs