Chapter 3.16 SALES TAX ON RAW FISH

A. "Buyer" means a person who purchases raw fish. "Buyer" also includes, but is not limited to, an officer or employee of a corporation or a member or employee of a partnership, limited partnership or a limited liability company who, as an officer, employee, or member, is under a duty to collect and/or pay the tax that is required by this chapter.

B. "Seller" means a person who has caught raw fish and sold them to a buyer. (Ord. 2005-05 (part), 2005; Ord. 80-7 §1, 1980: Ord. 32 §6, 1972).

3.16.020 Tax levied.

There is levied a sales tax of three percent on the sale of all raw fish harvested or sold within the boundaries of the borough, measured by their gross sale value in dollars paid by fish buyers, including indirect consideration and bonus amounts paid for fuel, supplies, gear, ice, handling, tender fees, or delivery, whether paid at the time of purchase of the raw fish or tendered as a deferred or delayed payment. (Ord. 2009-08 §2, 2009: Ord. 96-10 §2, 1996: Ord. 80-5 §1, 1980: Ord. 32 §1, 1973).

3.16.030 Payment of tax--Procedure--Obligation on seller.

The obligation to pay the tax is upon the seller, however, the buyer shall retain the sales tax at the time of the sale and shall remand the amount retained to the borough as provided in Section 3.16.040. Collection is enforceable by the certified tax collector of the borough; provided, however, that this shall not limit the liability of the seller to the borough. (Ord. 32 §2, 1973).

3.16.040 Payment of tax--Buyer accountable to borough.

All sales taxes collected or which should have been collected are borough moneys held in trust for the account of the borough by the buyer. The buyer us at all times accountable to the borough for such moneys. The taxes collected or which should have been collected are not subject to garnishment or attachment, and in the event of lien, judgment, or bankruptcy proceedings are not consid-

ered assets of the buyer. (Ord. 2005-05 (part), 2005: Ord. 32 §3(1), 1973).

3.16.050 Payment of tax--Deadline--Return information and
records of purchases.

The buyer shall pay to the borough all taxes collected or the amount of any taxes which should have been collected on the sales of raw fish harvested or purchased within the borough by the fifteenth of the month following the calendar month in which the taxes were or should have been collected. Every such buyer shall file with the borough, upon forms furnished by it, a sales tax return setting forth the following information, which return shall be submitted together with legible purchaser’s copies of a fish purchase ticket (Alaska Department of Fish and Game form) for each purchase transaction for the period covered by the return:

A. The calendar month covered by the return;

B. The date the return is prepared;

C. Primary gross purchase price of raw fish harvested or purchased within the borough;

D. Taxes due thereon;

E. Such other information as may be required by regulation.

The complete return together with the fish purchase ticket copies and the remittance in full or the amount of tax due, must be transmitted to the borough on or before the fifteenth day of each calendar month following the calendar month in which the taxes were collected or should have been collected. The buyer is liable for payment of the full amount of any taxes due whether such taxes were collected or not by the buyer. (Ord. 80-5 §2, 1980: Ord. 79-1 §1, 1979: Ord. 76-2 §1, 1976: Ord. 32 §3(2), 1973).

3.16.060 Payment of tax--Administration costs retained when.

If a complete return is filed with the entire tax remitted including penalties and interest within the time allowed, the buyer may retain three percent of the total tax due to cover his costs of administration of the tax; provided, the amount deducted and retained may not exceed three hundred dollars ($300). (Ord. 99-8, 1999: Ord. 32 §3(3), 1973).

3.16.070 Return to be filed when no tax is due.

Any person who filed or should have filed a sales tax return for a prior calendar month shall file a return, even though no tax may be due. This return shall show why no tax is due and, if the business is sold, the name of the person to whom it was sold. (Ord. 76-2 §2, 1976: Ord. 32 §3(4), 1973).

3.16.080 Seller--Final return required when--Responsibility of successor--Publishing names of businesses assumed to have ceased conducting business.

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

B. Any purchaser acquiring an ongoing business or the accounts receivable of a business shall be liable for the payment of taxes, penalties and interest accruing and unpaid to the borough on account of the operation of the business by the former owner, owners or assigns; provided however, that the borough shall first make all reasonable efforts to collect the tax from the person who owned the business at the time the liability was incurred.

C. A prospective lessee or purchaser of any business or business interest may inquire as to the obligation or tax status of any business upon presenting to the manager a release of a tax information request signed by the registered owner of the business. The liability of a purchaser or other entity for outstanding taxes, penalties and interest accrued and unpaid by the former owner shall be limited to an amount stated in writing by the borough in response to a release of information request. The borough shall have fifteen days to respond to the request. (Ord. 86-7 §1, 1986: Ord. 32 §3(5), 1973).

3.16.090 Exemptions.

The following classes of retail sales, services and rentals are exempt: all sales which are not raw fish. (Ord. 32 §4, 1973).

3.16.100 Dedication of proceeds.

The net proceeds from the taxes levied by this chapter shall be used exclusively for school purposes and borough operation on a basis determined annually by the assembly. (Ord. 32 §5, 1973).

3.16.110 Regulation adoption authorized.

The assembly may take any action necessary or appropriate to the implementation of this chapter by promulgating regulations, which may include the adoption of forms. Such regulations or any procedures adopted by the assembly are effective at the time indicated by them. (Ord. 32 §7(1), 1973).

3.16.120 Assembly to rule on application of chapter.

Should a taxpayer under this chapter be in doubt as to the application of the chapter to an actual situation facing him or about to face him, he may apply to the assembly for a ruling on the issue. (Ord. 32 §7(2), 1973).

3.16.130 Certificate of registration--Application.

All buyers purchasing raw fish shall file with the borough an application for a certificate of registration annually on a form prescribed by the borough, not more than one day after the beginning of the purchase of fish or the opening of an additional place of business. (Ord. 84-10, 1984: Ord. 32 §8(1), 1973).

3.16.140 Certificate of registration--Issuance--Display.

Upon receipt of a properly executed application, the borough manager will issue, without charge, a certificate of registration defining the applicant’s place of business to which it is applicable and obligating the buyer to retain the tax. The certificate must be prominently displayed at the buyer’s place of business within the boundaries of the borough. (Ord. 32 §8(2), 1973).

3.16.150 Certificate of registration--Nonassignable and nontransferable.

The certificate of registration is non-assignable and nontransferable and must be surrendered to the borough manager by the buyer to whom it was issued upon his ceasing to do business at the location named therein. If the business is continued at the same location but there is a change in its form of organization, such as from a single proprietorship to a partnership or a corporation, the admission or withdrawal of a partner, or any other change, the buyer making such change shall surrender his old certificate to the borough manager for cancellation. The successor buyer is required to file a new application for a certificate of registration. Upon receipt of such application, properly executed, a new certificate will be issued to such successor buyer. (Ord. 32 §8(3), 1973).

3.16.160 Purchase records to be open to inspection.

A buyer who obtains or should obtain a certificate of registration in accordance with this chapter hereby consents to the inspection of his fish purchase record in order to facilitate the accomplishment of the provisions and objectives of this chapter. (Ord. 32 §8(4), 1973).

3.16.170 Tax schedule.

The tax to be added to the sales price shall be in accordance with the following schedule:

	Price		Tax
$	.01 - .13	$	.00
	.14 - .46		.01
	.47 - .79		.02
	.80 - 1.13		.03

For sales above, the tax shall be an amount equal to three percent of the sales price, rounded off to the nearest cent by eliminating any fraction less than one-half cent and by increasing any fraction of one-half cent or over to the next highest cent. Each certificate holder shall be furnished the schedule of tax payable on each taxable amount from fourteen cents to one hundred dollars. Any one sale of raw fish separately priced shall be taxed upon the aggregate amount. (Ord. 32 §9, 1973).

3.16.180 Protest of tax--Procedure.

A. In the event a buyer or seller believes his transaction to be exempt, he may secure from the borough a certificate of protest, which shall be filled out by the parties of interest and delivered to the borough with the amount of the disputed tax.

B. The certificate shall show the respective names and addresses of the seller and the buyer, the nature of the claim of exemption, and such other information as may be prescribed by the borough.

C. All certificates of protest shall be delivered to the borough within five days prior to the date of the regularly called meeting of the assembly.

D. All parties of interest shall be advised in writing of the date the protest will be heard.

E. At the date of the next regularly called meeting of the assembly a public hearing will be held with an opportunity for all parties of interest to be heard.

F. The assembly will rule on each protest, and send to the parties of interest a notice that his claim has been allowed or disallowed, within thirty days after receipt of the certificate of protest by the borough. If the claim has been allowed, a refund, with six percent annual interest from the date of receipt of tax moneys, shall be remitted with the notification. The decision of the assembly shall be rendered in writing and shall be final, subject to judicial review. (Ord. 32 §10, 1973).

3.16.190 Returns and information declared confidential--Exceptions.

Returns filed with the borough for the purpose of complying with the terms of this chapter and all data obtained from such returns are confidential, and such returns, and data obtained therefrom, shall be kept from inspection by all private persons, except as necessary to investigate and prosecute violations of this chapter.

Nothing contained in this section shall be construed to prohibit the delivery to a person, or his duly authorized representative, of a copy of any return or report filed by him, nor to prohibit the publication of statistics so classified as to prevent the identification of particular buyers or sellers, nor to prohibit the furnishing of information on a reciprocal basis to other agencies of the state or the United States concerned with the enforcement of tax laws. (Ord. 32 §11, 1973).

3.16.200 Buyer required to keep records.

Every buyer engaged in activities subject to this chapter shall keep and preserve suitable records of all purchases made by him, and such other books or accounts as may be necessary to determine the amount of tax which he is obliged to remand. Every buyer shall preserve the return reporting such purchases, and shall preserve, for a period of four years, all invoices of raw fish purchased, and all such other books, invoices, and records as may be necessary to accurately determine the amount of taxes which the buyer is obliged to remand under this chapter. (Ord. 32 §12(1), 1973).

3.16.210 Investigations and hearings authorized.

For the purpose of ascertaining the correctness of return, the assembly may hold investigations and hearings concerning any matters covered by this chapter, and may examine any relevant books, papers, records, or memoranda of any buyer or seller and may require the attendance of any seller or buyer, or any officer or employee of the seller or buyer at the hearing. The assembly may engage the professional services of an accountant to assist in the determination of the correctness of the returns. (Ord. 2008-08 §3, 2008: Ord. 32 §12(2), 1973).

3.16.220 Certificate of registration--Failure to obtain--Penalties.

A buyer who is obligated to obtain a certificate of registration but fails to do so within one day from the date of receiving raw fish is subject to a civil penalty of three hundred dollars for failure to initially file for the certificate, and three hundred dollars for each day of business operation thereafter. (Ord. 32 §13(1), 1973).

3.16.230 Failure to file a return.

A buyer who fails to file a return as required by this chapter, or who fails to remit taxes due by the due date, is subject to an initial penalty of ten percent and an additional penalty of five percent per month of the tax due. (Ord. 76-2 §3, 1976: Ord. 32 §13(2), 1973).

3.16.240 Falsification or misrepresentation of records--Penalties.

Falsification, unless demonstrated to be unwillful, or misrepresentation of any record required hereunder, subjects the person making such falsification or misrepresentation to a penalty two times the amount of any tax due or lost because of such falsification or misrepresentation

and a fine of three hundred dollars for each instance of misrepresentation. (Ord. 32 §13(3), 1973).

3.16.250 Refusal to allow inspection--Penalty.

The failure of a seller and/or buyer to allow the inspection, at reasonable times, of records required to be kept by this chapter subjects the buyer to a penalty of three times the amount of any deficiency found or estimated to have occurred by the borough in the tax accounting of the seller and/or buyer, if confirmed by an independent audit provided by the buyer. (Ord. 32 §13(4), 1973).

3.16.260 Estimation of tax by borough.

In the event that the borough is unable to ascertain the tax due to be remitted by a buyer by reason of the buyer’s failure to keep accurate books, refusal to allow inspection, failure to file a return, or falsification of records, the borough may make an estimate of taxes due based on any information available to it. Notice of the estimate of taxes due shall be furnished to the buyer, and shall become final for the purposes of determining liability of the buyer to the borough in thirty days, unless the buyer earlier files an accurate return, supported by satisfactory records, indicating a lesser liability. (Ord 32 §13(5), 1973).

3.16.270 Maintenance of suits.

Nothing in Sections 3.16.220 through 3.16.260 shall prevent the borough from filing and maintaining an action to collect any taxes due or which should have been collected in addition to any penalty assessed. (Ord. 32 §13(6), 1973).

3.16.280 Lien created.

The tax as imposed by this chapter together with all penalties and interest, and administrative and legal costs incurred, shall constitute a lien in favor of the borough upon all the buyer’s and seller’s real and personal property. The lien arises upon delinquency, and continues until the liability for the amount is satisfied or the property is sold at a foreclosure sale. The lien has a priority as allowed by AS 29.45.650(e). The lien is not valid until notice of the lien is filed in the office of the recorder for the district in which the property is located. (Ord. 2001-06, 2001).

3.16.290 Accelerated returns required when.

A buyer who fails to file a tax return or who has been late in filing may be required by the assembly to file returns and remit taxes on a daily basis. (Ord. 76-2 §4, 1976: Ord. 32 §15, 1973).

3.16.300 Extensions--Filing deadline.

For good cause shown, the assembly may grant extensions on any time limitation described in this chapter. Any application for an extension must be filed before the date specified as the original time limitation. (Ord. 32 §16, 1973).

3.16.310 Criminal acts designated--Penalties.

A. Each of the following acts, unless determined to be unintentional, constitutes a misdemeanor, and is punishable by imprisonment for up to thirty days, and by a fine of up to three hundred dollars, in addition to any civil penalty assessed:

1. Failure to obtain a certificate of registration;

2. Failure to file a return or failure to remit taxes due;

3. Falsification or misrepresentation of any record filed with the borough or required to be kept according to this chapter, if used to mislead borough tax authorities.

B. Each act listed in this section constitutes a separate offense and each day constitutes a separate offense for continuing crimes of omission or concealment. (Ord. 32 §17, 1973).

For statutory provisions concerning a borough sales tax not to exceed three percent, see AS 29.53.415.