Chapter 4.20 SALES TAX

The city shall levy and collect a tax on sales, rents, and services provided within the city, pursuant to the provisions of AS 29.45.700(c) and 29.45.650 through 29.45.670, this chapter and Chapter 4.23, to be deposited in the general fund of the city and used for general revenue for the city. (Ord. 00-03 § 1 (part), 2000; Ord. 20-03 § 3, 2020.)

4.20.015 Legislative authority.

The city council may adopt and promulgate suitable rules and regulations for the application and interpretation of this chapter. (Ord. 00-03 § 1 (part), 2000.)

4.20.020 Definitions.

When not clearly otherwise indicated by the context, the following words and phrases, as used in this chapter and in Chapter 4.23, have the following meanings:

“Advertising” means services rendered to promote a product, service, idea, concept, issue, or the image of a person, including services rendered to design and produce advertising materials prior to the acceptance of the advertising materials for reproduction or publication, including research; design; layout; preliminary and final art preparation; creative consultation, coordination, direction, and supervision; script and copywriting; editing; and account management services.

“Alcoholic beverage” means beverages that are suitable for human consumption and contain one-half of one percent or more of alcohol by volume spirituous, vinous, malt or other fermented or distilled liquids, whatever the origin, that are intended for human consumption as a beverage and that contain alcohol.

“ATV” or “off-highway vehicle” means a vehicle designed or adapted for cross-country operation over unimproved terrain, ice or snow, and which has been declared by its owner at the time of registration and determined by the department to be unsuitable for general highway use, although the vehicle may make incidental use of a highway as provided in this title; it does not include implements of husbandry and special mobile equipment.

“Banking services” means deposit account services, loan transaction fees, transactions relating to the sale or exchange of currency or securities, transactions for conversion of negotiable instruments, safe deposit services, escrow collection services, late fees, overdraft fees, and interest charged on past due accounts.

“Boat” means a vessel used or capable of being used as a means of transportation on the water.

“Buyer” means a person to whom a sale of property or product is made or to whom a service is furnished and includes persons who are purchasers of personal or real property, rental space or services.

“Child care” means a regular service of care and education provided for compensation for any part of a day less than twenty-four hours to a child or children under sixteen years of age whose parents work outside the home, attend an educational program or are otherwise unable to care for their children.

“Coin-operated machine” means a slot machine, marble machine, juke box, merchandise vending machine, laundry, dry cleaning and any other service dispensing machine or amusement device of any kind which requires the insertion of currency to make it operative.

“Drug” means a compound, substance or preparation, and any component of a compound, substance or preparation, other than “food and food ingredients,” “dietary supplements” or “alcoholic beverages”:

1. Recognized in the official United States Pharmacopoeia, official Homeopathic Pharmacopoeia of the United States, or official National Formulary, and supplement to any of them; or

2. Intended for use in the diagnosis, cure, mitigation, treatment, or prevention of disease; or

3. Intended to affect the structure or any function of the body.

“Dues, membership and subscription” means monies paid for the purpose of membership, or qualifying or becoming eligible for goods or services, or discounts to goods or services.

“Food stamps” means obligations of the United States government issued or transferred by means of food coupons or food stamps to enable the purchase of food for the eligible household.

“Fuel” means refined petroleum and petroleum-based products used for internal combustion engines and as the primary source for residential heating or domestic hot water. This may also include other types of fossil fuels as well as fuel sources that are renewable.

“Government” means the federal government and any agency or instrumentality thereof; any state and any agency or instrumentality thereof; any local government within a state, and any unit, agency, or instrumentality of such local government; any tribal government; any other governmental instrumentality.

“Hotel” means any structure, or any portion of a structure, which is used, occupied, intended or designed for occupancy by transients for dwelling, lodging or sleeping purposes, and includes any hotel, inn, tourist home or house, bed and breakfast, motel, home or house trailer at a fixed location, or other similar structure or portion thereof.

“Insurance” means a contract whereby one undertakes to indemnify another or pay or provide a specified or determinable amount or benefit upon determinable contingencies.

“Internet service” means a service that enables users to access proprietary and other content, information, electronic mail, and the Internet as part of a package of services sold to end-user subscribers.

“Medical equipment and supplies, and prescriptions” means all medicines, medical goods or equipment prescribed by a health care provider licensed to practice in Alaska or any other state in the United States.

“Medical services” means those professional services rendered by persons duly licensed under the laws of this state to practice medicine, surgery, chiropractic, podiatry, dentistry, and other professional services rendered by a licensed midwife, certified registered nurse practitioners, and psychiatric and mental health nurse clinical specialists, and appliances, drugs, medicines, supplies, and nursing care necessary in connection with the services, or the expense indemnity for the services, appliances, drugs, medicines, supplies, and care, as may be specified in any nonprofit medical service plan. “Medical services” includes hospital services.

“Monthly” means occurring once per calendar month.

“Newspaper” means a publication of general circulation bearing a title, issued regularly at stated intervals at a minimum of not more than two weeks, and formed of printed paper sheets without substantial binding. It must be of general interest, containing information of current events. The word does not include publications devoted solely to a specialized field. It shall include school newspapers, regardless of the frequency of the publication, where such newspapers are distributed regularly to a paid subscription list.

“Person” means and includes individuals and every person recognized in law and every group of persons who act as a unit; an individual, trust, estate, fiduciary, partnership, limited liability company, limited liability partnership, corporation, or any other legal entity.

“Professional services” means services performed by architects, attorneys-at-law, certified public accountants, dentists, engineers, land surveyors, surgeons, veterinarians, and practitioners of the healing arts (the arts and sciences dealing with the prevention, diagnosis, treatment and cure or alleviation of human physical or mental ailments, conditions, diseases, pain or infirmities) and such occupations that require a professional license under Alaska Statute.

“Property” and “product” mean both tangible property, an item that can be seen, weighed, measured, felt, or touched, or that is in any other manner perceptible to the senses; and intangible property, anything that is not physical in nature (i.e., intellectual property, brand recognition, goodwill, trade, copyright and patents).

“Quarter” means trimonthly periods of a calendar year; January—March, April—June, July—September, and October—December.

“Receive” means:

1. Taking possession of property;

2. Making first use of services;

3. Taking possession or making first use of digital goods, whichever comes first.

The terms “receive” and “receipt” do not include temporary possession by a shipping company on behalf of the purchaser.

“Resale of services” means sales of intermediate services to a business the charge for which will be passed directly by that business to a specific buyer.

“Sale” or “retail sale” or “sale at retail” means any transfer of property for consideration for any purpose other than for resale, every sale or rental of real property or sale or rental of personal property (whether tangible or intangible), every sale or exchange of services, including barter, credit, lease, installment and conditional sales, for any purpose other than resale when such resale is made in the regular course of business and includes, but is not limited to, the following transactions:

1. Selling property; or

2. Renting, leasing, or letting of real or personal property, accommodations, facilities, or services of any nature whatsoever; or

3. Storing for use or consumption any item or article of personal property; or

4. Rendering occupational or professional services of any nature whatsoever; or

5. Furnishing materials and rendering services in connection therewith to accomplish the installation, construction, repair or completion of a specific end product or project; or

6. Selling real estate comprising parcels of land and buildings or improvements thereto, either separately or conjunctively; provided, however, that an isolated sale of property by an owner not engaged in the real estate business shall not be taxable; but in the event a commission or other fee on such isolated sales is collected by a real estate agent or broker, the tax shall be applicable to the commission or service charge of the agent or broker; or

7. Transfer of the product of a manufacture or construction process to the user of the product; or

8. Importing, or causing to be imported, property from outside the city for sale or for rent, storage, distribution, use or consumption within the city; or

9. Soliciting business, either directly or indirectly, as a representative or agent of a manufacturer, wholesaler, retailer, or distributor of merchandise or by the distribution of catalogs or other advertising matter or by any means whatever, and by reason thereof receiving orders for property from buyers or consumers for use, consumption or distribution for use, consumption or storage within the city; and the foregoing shall include every person who, as a representative, agent or solicitor, receives and accepts orders from buyers or consumers from within the city for future delivery; or

10. Selling or furnishing, preparing and serving food or beverages, alcoholic or nonalcoholic, for consumption on or off the premises of the seller; or

11. Selling bingo cards or pull tabs; or

12. Every use or play of a coin-operated machine; or

13. Transacting or engaging in any type of business not enumerated herein.

Sale within the City.

1. For the purpose of the tax levied by this chapter, a sale of personal property is made within the city if:

a. The sale is made by a business located within the city;

b. The sale is made by a seller located outside of the city as a result of solicitation inside of the city and payment or delivery occurs within the city;

c. The sale is made by a seller whose principal place of business is outside of the city if such seller maintains any office, distribution, sales house, warehouse or any other place of business or solicits business or receives orders through any agency, salesperson or other type of representative within the city.

2. For the purposes of the tax levied by this chapter, services are within the city if, regardless of the location of the business rendering the services:

a. The services, or any essential or substantial part thereof, are rendered within the city; or

b. The order for the services is solicited or received within the city or payment is received within the city, or the services are rendered by a business maintaining an office, agent, or employee within the city.

“Sales price” or “selling price” or “purchase price” means the total amount of any consideration paid by a buyer in terms of money and, in the case of a sale involving an exchange of property and/or services, the fair market value of the property or services exchanged, including delivery or installation costs; means consideration, including cash, credit, property, products, and services, for which property, products, or services are sold, leased, or rented, valued in money, whether received in money or otherwise, but excluding the sales tax without any deduction for the following:

1. The seller’s cost of the property or product sold;

2. The cost of materials used, labor or service cost, interest, losses, all costs of transportation to the seller, all taxes imposed on the seller, and any other expense of the seller;

3. Charges by the seller for any services necessary to complete the sale, other than delivery and installation charges;

4. Delivery charges;

5. Installation charges; and

6. Credit for any trade-in, as determined by state law.

“Seller” means and includes persons who are vendors of property, persons furnishing services, the lessors of rental space or goods, and all persons making sales including consignees and persons who conduct sales where items will be sold for a commission or fee or a marketplace facilitator facilitating sales on behalf of a seller.

“Services” means and includes all services of every manner and description which are performed or furnished for compensation of any kind, except services rendered to an employer by an employee, including but not limited to:

1. Professional services;

2. Services in which a product or sale of property may be involved including personal property made to order;

3. The sale of transportation services;

4. Services rendered for compensation by any person who furnishes any services in the course of their business or occupation;

5. Services wherein labor and materials are used to accomplish a specified result;

6. Commissions earned during business conducted within the city; and

7. Any other services including advertising, maintenance, recreation, amusement and craftsmen’s services.

“Snow machine” means a motor vehicle designed to travel over ice or snow, and supported in part by skis, belts, cleats, or low-pressure tires.

“Tax cap” means a maximum taxable transaction.

“Telephone service” means the providing by any person of access to a telephone network, telephone network switching service, toll service, or coin telephone services, or the providing of telephonic, video, data, or similar communication or transmission for hire, via a telephone network, toll line or channel, cable, microwave, or similar communication or transmission system.

“Transient” means any person who exercises occupancy or is entitled to occupancy by reason of concession, permit, right of access, license or other agreement for a period of thirty consecutive calendar days or less, counting portions of calendar days as full days. Any such person so occupying space in a hotel shall be deemed to be a transient until the period of thirty days has expired unless there is an agreement in writing between the operator and the occupant providing for a longer period of occupancy, or the occupant has paid in advance for over thirty days’ occupancy. In determining whether a person is a transient, uninterrupted periods of time extending both prior and subsequent to the effective date of the ordinance codified in this chapter may be considered.

“Transportation services” means the transportation of individuals for hire.

“Wholesale sale” means a sale of goods by a merchant selling them in the regular course of his business; or a sale of goods by a merchant selling them in the regular course of his business at wholesale prices to jobbers, dealers, or other wholesalers for the purpose of taxable resale in the city. The term does not include a sale by a wholesaler to users or customers when such sale is not for taxable resale in the city.

“Wholesaler” means a merchant who sells goods, in the regular course of his business, to retailers who sell to consumers, or sells goods in the regular course of his business to jobbers, dealers, or other wholesalers, for the purpose of taxable resale in the city. To qualify as a wholesaler, the merchant must be regularly recognized as such, and known to the trade as such. (Ord. 00-03 § 1 (part), 2000; Ord. 20-03 § 4, 2020.)

4.20.030 Imposition of tax.

A. There shall be levied and collected within the city a tax on all sales at retail made within the city, all professional or occupational services, all materials furnished and services rendered in connection with the accomplishment of a specific project or end product, all rental of property, facilities and accommodations. The applicable tax rate (see Section 4.20.080A) shall be added to the sales price.

B. Where a purchaser has failed to pay and a seller has failed to add to the sales price and collect the tax imposed by this chapter, the tax is included in the purchase price and, as in other cases, constitutes city funds in the hands of the seller held in trust for the city from the moment of collection. The city shall be paid but a single tax on a single sale. The burden of the tax here imposed shall, in the normal course of events, rest upon the purchaser except as provided in this subsection. (Ord. 00-03 § 1 (part), 2000.)

4.20.050 Exemptions.

The tax levied by this chapter shall not apply to the following:

A. Air Travel. Sale of air transportation services;

B. Banking. Fees for banking services charged by banks and credit unions;

C. Casual and Isolated Sales. Casual or isolated sales not made in the regular course of business of the seller.

For purposes of administering this regulation, the term “casual” means occurring, encountered, acting or performed without regularity or at random. The term “occasional” and the term “isolated” mean occurring alone or once, an incident not likely to recur, sporadic;

D. Child Care Services. Child care, pre-elementary, and baby-sitting services;

E. City Sales. Landfill and boat harbor fees, and wharfage and handling services when sold by the city;

F. Dues and Fees. Dues, fees, or tuition paid to clubs, labor unions and fraternal or religious organizations;

G. Electricity, Internet and Telephone. Sales of electricity, internet, and telephone if the customer’s physical location of service is not within the city; charges for long distance telephone conversations;

H. Federal and State Prohibitions.

1. Sales the city is prohibited from taxing under the Constitution and laws of the United States or the Constitution and the laws of the state of Alaska are exempt;

2. Sales to an employee of the state, its political subdivisions, or the federal government are only exempt when the governmental employee provides proof that the sale is for government business by paying for the sale with a government voucher, purchase order, check or warrant, or providing verifiable documentation to the seller to allow the seller to readily determine that the sale is for government business;

3. Sales to the extent paid for with food coupons, food stamps or other types of certificates issued under the Food Stamp Act;

I. Fish. Sales of fish subject to tax under Chapter 4.21;

J. Funeral. Sales of cemetery plots, caskets, burial items, and funeral services sold by a funeral home;

K. Government and Tribal Entities. Sales to the United States government, the state and its political subdivisions, a federally recognized Indian tribe, the city or any department thereof; provided, however, that the exemption shall not be applicable to the sales of materials and supplies to contractors for the construction or manufacture of property for government agencies or tribal entities on a contract bid award, in which the contractor shall be deemed the buyer or consumer or user subject to payment of the tax;

L. Health and Medical.

1. Professional services provided a person licensed or certified by the state of Alaska as a doctor of medicine, surgery, osteopathy, or veterinary medicine, a chiropractor, a dentist, a naturopath, an optometrist, an audiologist, a hospital, an occupational therapist, a physical therapist, a massage therapist or nurse, psychologist or psychological associate, a clinical social worker, an alcohol and drug counselor, or a marital and family therapist when the services provided require such license or certificate;

2. Assisted living services provided in accordance with an assisted living plan and in an assisted living home licensed as such by the state;

3. Fees for supplies, equipment and services provided by a hospital, medical, or dental clinic for patient treatment, including laboratory and x-ray services; sales of prescription drugs;

M. Insurance. Sales of insurance policies, guaranty and fidelity bonds;

N. Newspapers. Carrier sales made directly to consumers or users of newspapers;

O. Nonlicensed Business. Sales of goods and services made by persons not required to obtain a business license under Chapter 4.16;

P. Nonprofit Organizations. Sales, services, and rentals to organizations that have obtained a 501(c)(3) or 501(c)(4) exemption certificate from the Internal Revenue Service, and which are made in the normal conduct of activity, but not to individual members or employees thereof for their own personal consumption, use or accommodation; the exemption does not apply where such organizations are engaged in business for profit or savings, or competing with other persons engaged in similar business;

Q. Professional Services. Professional services provided to a customer or client whose principal residence or place of business is not within the city of Dillingham if the services are provided or performed primarily or entirely outside the city;

R. Public Food.

1. Sales of food in school and college cafeterias and lunchrooms that are operated primarily for teachers or students and are not operated for profit;

2. Sales in dining rooms or cafeterias of food furnished by nonprofit organizations under programs wholly or partially supported by government funds;

S. Resale. Sales of goods to a wholesaler, retailer, or other purchaser if such purchaser resells the same goods, in the same or altered form, and the resold goods will not be exempt from the tax levied under this chapter. To obtain the exemption provided for in this subsection, the purchaser shall display or provide to the seller at the time of the sale a copy of the purchaser’s resale certificate. If the purchaser buys goods for resale and for personal or other use at the same time, only the goods that are sold for resale are exempt. Supplies, services, tools, repair services, equipment or other goods or services purchased to support a business but not for resale are not exempt;

T. Tax Cap. The selling price amount of any sale (other than the rental or lease of real or personal property or any provision of services) in excess of three thousand five hundred dollars. For purposes of this exemption the following rules apply:

1. The sales price of multiple items purchased by the same buyer from the same seller at the same time, and which are delivered on one date, shall be combined and treated as a single sale or transaction. If the buyer is purchasing a number of items for a construction, improvement, or renovation package, the sales price of the multiple items purchased at the same time as a package shall be combined even though delivery or payment for some of the items may be made at different times. A “package” is defined as an arrangement where the buyer or seller has obtained all required permits (i.e., city land use permit or other building permit), and there is a written agreement with seller identifying the total price being paid.

2. Each payment for a single item paid for on an installment basis shall be considered a separate sale with the exception that installment payments for snow machines, ATVs, boats, boat motors, and vehicles that are seller financed by a business operating within the city or by a financial institution are subject to the sales tax cap on the total amount of the sale.

3. For purposes of computing the amount of any sale or transaction, items purchased on account or on credit on different days shall not be combined and treated as a single sale or transaction. (Ord. 17-08 § 2, 2017; Ord. 18-03 § 2, 2018.)

4.20.060 Tax based on sales price.

The tax which seller shall collect from the buyer and pay to the city shall be the applicable percentage of the sales price in dollars derived from all taxable retail sales made within the city, and shall be applicable to all persons except as may otherwise be provided in this chapter. (Ord. 00-03 § 1 (part), 2000.)

4.20.070 Liability for tax.

A. Every seller within the city shall add the applicable tax herein imposed to the total selling price and collect the applicable tax from the buyer at the time of the sale or at the time of collection on credit transactions, and such tax shall be a debt from the buyer to the seller until paid, and shall be recoverable at law in the same manner as other debts.

B. Nothing in this chapter shall limit the liability of the buyer or the seller to the city. All sales taxes collected or which should have been collected pursuant to this chapter are city monies for which both the seller and the buyer are at all times liable to the city.

C. Any person who acquires or succeeds to an ownership interest in an ongoing business shall be liable for the payment of all taxes, interest, penalties and administration costs accruing and unpaid to the city on account of operation of that business by the former owner. This section shall not apply to any person who acquires their ownership interest in the ongoing business as a result of the foreclosure of a lien that has priority over the city’s sales tax lien under this section. Any person who acquires or succeeds to an ownership interest in an ongoing business operating within the city must immediately notify the city of the acquisition or succession and inquire as to whether any property of that business is subject to a lien under this section. (Ord. 00-03 § 1 (part), 2000.)

4.20.080 Tax rate.

A. The tax to be added to the sale price, shall be ten percent for alcohol and transient lodging and six percent for all other sales at retail. Any one sale of items separately priced shall be taxed upon the aggregate amount. Each seller shall be furnished the schedule of tax payable on each taxable amount from one cent to one hundred dollars.

B. The revenue from a coin-operated machine shall be treated in gross without reference to the amount paid or played on a particular transaction. (Ord. 00-06 § 1, 2000; Ord. 00-03 § 1 (part), 2000; Ord. 01-04 § 2, 2001.)

4.20.085 Sales of fuel delivered outside city limits.

A. Notwithstanding any other provision of this chapter, city of Dillingham sales tax applies to fuel sales in which fuel is sold by a seller located in Dillingham and delivered to a buyer located outside of Dillingham. Sales tax does not apply to the delivery charge for such sales.

B. If the buyer is not located within any other municipality that collects a sales tax on the transaction, the seller shall collect from the buyer the full amount of Dillingham sales tax, which shall be remitted to Dillingham.

C. If the buyer is located outside Dillingham and within a municipality that collects sales tax on the transaction, the seller shall collect from the buyer the full amount of Dillingham sales tax if the Dillingham rate exceeds that of the other municipality. The seller shall report and remit to the other municipality the full amount of sales tax owed under that municipality’s laws. The seller shall report all such sales to Dillingham along with documentation showing that a portion of the collected sales tax was remitted to the other municipality. The portion of monies collected or which should have been collected that is not remitted to the other municipality shall be remitted to Dillingham.

If the other municipality’s applicable sales tax rate exceeds that of Dillingham, the seller is not required to remit sales tax to Dillingham for the transaction, but shall report such sales to Dillingham and include documentation that the tax was paid to the other municipality. (Ord. 15-02 § 1, 2015.)

4.20.090 Certificate of authority to collect city sales tax—Application required.

All sellers shall file with the city an application for a certificate of authority to collect sales tax on a form prescribed by the city, not more than ten days after the date of commencing business, or the opening of an additional place of business. Remittance of tax to the city is the responsibility of the certificate holder. (Ord. 00-03 § 1 (part), 2000.)

4.20.100 Certificate of authority to collect city sales tax—Issuance—Display required.

Upon receipt of a properly executed application, the city will issue a certificate of authority to collect city sales tax, stating the name of the business to which it is applicable. The certificate must be prominently displayed at the place of business named therein. A seller who has no regular place of business shall attach such certificate to their stand, truck, or other merchandising device. (Ord. 00-03 § 1 (part), 2000.)

4.20.110 Certificate of authority to collect city sales tax—Nontransferability—Change in business—Surrender when.

The certificate of authority to collect city sales tax is nonassignable and nontransferable and must be surrendered to the city by the seller to whom it was issued, upon the seller’s 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 sole proprietorship to a partnership or a corporation, the admission or withdrawal of a partner, or any other change, the seller making such change shall surrender the old certificate to the city for cancellation. The successor seller is required to file a new application for a certificate of authority to collect city sales tax. Upon receipt of such application, properly executed, a new certificate will be issued to such successor seller. (Ord. 00-03 § 1 (part), 2000.)

4.20.115 Filing of returns and remittance of tax to city.

A. A seller required to possess a certificate of authority to collect city sales tax shall file a completed tax return form as provided by the city, and shall remit the tax imposed by this chapter to the city on a monthly basis, not later than the last day of the calendar month following the month in which the taxes were collected or should have been collected. A seller owing less than one hundred dollars per month in sales tax may file returns and remit taxes on a quarterly rather than a monthly basis. In this instance, the seller shall file a completed tax return and shall remit the tax imposed by this chapter to the city not later than the last day of the calendar month following the quarter in which the taxes were collected or should have been collected. However, a seller with less than one hundred dollars per month in sales tax who has failed to file sales tax returns and remit sales tax receipts to the city in a timely manner must file on a monthly basis rather than on a quarterly basis. If the last day of the month in which a return is due is not a day on which city hall is open for regular business, remittance shall be made not later than the first day thereafter on which city hall is open to regular business. A postmark on or before the day the tax is due as described herein shall be accepted as prima facie evidence of timely filing.

B. A seller whose business is seasonal and who will have no tax receipts during certain months, may file a return at the end of the seller’s season showing the months during which the business shall have no sales of any kind. When their business shall again become active, the seller will remit sales taxes and file returns as required by this chapter.

C. No more than fifteen days after the sale, lease, or other disposition or change in ownership interest of a business, other than a transfer of outstanding shares of stock, or upon incorporation of any business registered pursuant to this chapter, the previous owner of the business shall file a final tax 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.

D. Failure by a seller to obtain a certificate of authority does not affect the seller’s obligation to collect and remit sales taxes to the city as provided by this chapter. Such failure will, however, subject seller to penalties and other enforcement action by the city. (Ord. 00-03 § 1 (part), 2000.)

4.20.130 Recordkeeping—Inspection.

A. In order to facilitate the administration and enforcement of the provisions of this chapter, each seller or person otherwise engaged in business within the city, as herein defined, shall secure, maintain and keep for a period of six years all sales tax reports, sales forms, sales records and supporting schedules or ledgers, including computerized records.

B. The city shall furnish all necessary forms for filing returns, together with instructions, to insure a full collection of and accounting for the taxes imposed by this chapter; but the failure of any seller or person engaged in business to secure such forms shall not relieve the seller of the duty of collecting or paying the taxes due at the time and in the manner prescribed in this chapter.

C. The city may authorize an employee or agent to examine and inspect at all reasonable hours the books, records, and other documents of any seller or person otherwise engaged in business within the city in order to carry out the provisions of this chapter. In the event of refusal by a seller to permit such examination and inspection, the city may resort to the procedure prescribed in Section 4.20.180.

D. Any seller or person engaged in business who is unable or unwilling to submit their records within the city shall be required to pay the city for all necessary expenses incurred for the examination and inspection of their records maintained outside the city. (Ord. 00-03 § 1 (part), 2000.)

4.20.140 Seller not to assume tax.

A seller shall not advertise or hold out or state to the public or to any buyer, directly or indirectly, that the sales tax or any part thereof imposed by this chapter will be assumed or absorbed by the seller or that it will be refunded or assumed, in whole or in part. The seller shall, whenever feasible, separately state the tax to the buyer on each taxable transaction. When not feasible to state the sales tax separately, the seller shall prominently display a sign indicating the imposition of the tax. (Ord. 00-03 § 1 (part), 2000.)

4.20.150 Seller’s compensatory collection discount.

Repealed by Ord. 20-03. (Ord. 00-03 § 1 (part), 2000.)

4.20.155 Revocation of certificate of exemption.

Whenever any sales tax, penalties or interest is delinquent, or when there is a manifest failure on the part of the seller to maintain proper accounting records and returns of the sales tax due, the certificate of exemption will be revoked. (Ord. 00-03 § 1 (part), 2000.)

4.20.160 Protest of tax—Procedure—Determination.

A. A seller shall determine in the first instance whether a retail sale is exempt under this chapter. If a seller incorrectly determines that a sale is exempt, then the seller is liable to the city for the tax on said sale.

B. In the event that the seller determines that a transaction is not exempt, but the buyer believes the transaction to be exempt, then the seller will furnish to the buyer a protest notice form, supplied by the city, which shall be filled out by the buyer and delivered to the seller with the disputed tax at the time of the sale. The protest notice 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 required by the city.

C. The seller shall remit to the city any protest notices delivered to the seller as promptly as possible, but in any event no later than thirty days after delivery of a protest notice to the seller, together with any additional information which the seller believes to be pertinent to the determination of the issue.

D. The city will rule on each protest and send to the buyer a notice that his claim has been allowed or disallowed, within thirty days of receipt of the notice by the city. If the claim has been allowed, a refund will be remitted with the notice. (Ord. 00-03 § 1 (part), 2000.)

4.20.170 Exemption—Registration of buyers.

A. The city may, by regulation, require that the seller collect the sales tax from any class of buyer allegedly exempt under Section 4.20.050 unless the buyer is registered under subsection B of this section. An unregistered buyer may file a protest notice under Section 4.20.160.

B. The city may, by regulation, require that any class of buyer exempt under Section 4.20.050 register with the city as a buyer exempt from payment of the sales tax. Registration shall be upon forms provided by the city and shall include a brief statement of the reason for exemption and such other information as the city may require. Upon registration, the buyer, shall be issued a certificate or certificates of exemption which the buyer must show the seller to avoid imposition and payment of the sales tax.

C. A certificate of exemption may be withheld if the seller or person otherwise engaged in business is in violation of a city regulation or ordinance. (Ord. 00-03 § 1 (part), 2000.)

4.20.180 Estimation by city.

In the event that the city is unable to ascertain the tax due to be remitted by a seller by reason of the failure of the seller to keep accurate books or records, allow inspection, failure to file a return, or falsification of records, the city may make an estimate of the sales tax due based on any information available to it. Notice of the estimate of sales taxes due shall be furnished the seller and shall become final for the purposes of determining liability of seller to the city in thirty days unless the seller earlier files an accurate return, supported by satisfactory records, indicating a lesser liability. (Ord. 00-03 § 1 (part), 2000.)

4.20.190 Loss of records—Seller’s notification duty.

A seller shall immediately notify the city of any fire, theft or other casualty which would prevent the seller from complying with this chapter. Such casualty constitutes a defense to any penalty provided in this chapter but does not excuse the seller from liability for taxes due. Accidental loss of funds or records is not a defense hereunder. (Ord. 00-03 § 1 (part), 2000.)

4.20.200 Maintenance of suits in addition to penalties and interest.

Nothing in this chapter shall prevent the city from filing and maintaining an action to collect any taxes collected or which should have been collected in addition to any penalty or interest due thereon. (Ord. 00-03 § 1 (part), 2000.)

4.20.210 Violations—Penalties.

A. It is unlawful for any seller who is required to obtain a certificate of authority to collect city sales tax:

1. To fail to obtain a certificate of authority within the time prescribed by this chapter.

2. To fail to file a return as required by this chapter, or fail to remit taxes collected or which should have been collected. The filing of an incomplete return is the equivalent of filing no return.

3. To falsify or knowingly misrepresent any record required by this chapter.

4. To deny the city permission to inspect records required to be kept by this chapter.

B. In addition to penalties for violations of this section set forth in Section 1.20.040, the city may recover by civil action the amount which the seller should have remitted to the city as sales tax, plus a late filing fee of twenty-five dollars per month, plus a penalty of ten percent of the taxes collected but not remitted, or which should have been collected per month or fraction thereof until a total of twenty percent of delinquent tax has been reached. The city may also recover full actual reasonable attorney’s fees in any action against a delinquent seller.

C. The city may also have any person or business that violates this section, or any vessel owned by any such person or business, placed on the city’s denied services list using the procedures set forth in Chapter 4.40.

D. Fees, penalties and interest shall be assessed and collected in the same manner as the tax is assessed and collected, and applied first to fees, penalties and interest, second to past due sales tax.

E. The filing of an incomplete return, or the failure to remit all tax, shall be treated as the filing of no return.

F. A penalty assessed under this section for the delinquent remittance of sales tax or failure to file a sales tax return may be waived by the city, upon written application of the seller accompanied by a payment of all delinquent sales tax, interest and penalty otherwise owed by the seller, within forty-five calendar days after the date of delinquency. A seller may not be granted more than one waiver of penalty under this subsection in any one calendar year. (Ord. 13-19 § 7, 2013; Ord. 20-03 § 6, 2020.)

4.20.220 Interest on late payments.

A seller who fails to remit payments in a timely manner shall be liable for interest charges of six percent per annum on the amount of delinquent taxes accruing from the due date until paid in full. Interest shall not accrue on any penalty imposed under Section 4.20.210(B). (Ord. 00-03 § 1 (part), 2000; Ord. 12-18 § 2, 2012; Ord. 20-03 § 7, 2020.)

4.20.230 Acts constituting a misdemeanor—Penalty.

Repealed by Ord. 13-19. (Ord. 00-03 § 1 (part), 2000.)

4.20.240 Delinquent list.

Repealed by Ord. 13-10. (Ord. 00-03 § 1 (part), 2000.)

4.20.250 Failure to cure delinquency.

Repealed by Ord. 13-10. (Ord. 00-03 § 1 (part), 2000.)

4.20.260 Effect of contest of delinquency.

Repealed by Ord. 13-10. (Ord. 00-03 § 1 (part), 2000.)

4.20.265 Repayment plan.

A. A seller and the city may agree to enter into a repayment plan. No repayment plan shall be valid unless agreed to by the parties in writing.

B. A seller shall not be eligible to enter a repayment plan if:

1. The seller has defaulted on a repayment plan in the previous two calendar years.

C. The repayment plan shall include a secured promissory note that substantially complies with the following terms:

1. The seller agrees to pay a minimum of ten percent down payment of the tax, interest, and penalty amount due. The down payment shall be applied first to penalty, then to accumulated interest, and then to the tax owed.

2. The seller agrees to pay the balance of the tax and interest owed in monthly installments over a period not to exceed two years.

3. Interest at a rate of six percent shall accrue on the principal sum due. Interest shall not apply to penalties owed or to interest accrued at the time the repayment plan is executed or accruing during the term of the repayment plan.

4. The seller agrees to provide a personal guarantee of the obligations under the repayment plan if the seller is a corporation or limited liability entity.

5. The seller agrees to pay all future tax bills in accordance with the provisions of this section.

6. The seller agrees to provide a security interest in the form of a sales tax lien for the entire unpaid balance of the promissory note to be recorded by the city at the time the repayment plan is signed. The seller shall be responsible for the cost of recording the tax lien.

D. If a seller fails to pay one or more payments as required by the repayment plan agreement, the seller shall be in default and the entire amount owed at the time of default shall become immediately due. The city will send the seller a notice of default. The city may immediately foreclose on the sales tax lien or take any other remedy available under the law including placing the seller on the city’s denied services list using the procedures set forth in Chapter 4.40. (Ord. 12-18 § 3, 2012; Ord. 13-11 § 4, 2013.)

4.20.270 Tax lien.

A. All taxes, interest, penalties and administration costs required to be remitted by a seller under this chapter shall constitute a lien against real and personal property of the seller, effective on the date of any delinquency.

B. The city may record a lien under this section by recording a notice of said lien in the district recorder’s office. Upon recordation, a lien under this section has priority over all other liens except: (1) liens for property taxes and special assessments; (2) liens that were perfected before the recording of said lien for amounts actually advanced before the recording of said lien; (3) mechanics’ and materialmen’s liens for which claims of lien under AS 34.35.070 or notices of right to lien under AS 34.35.064 have been recorded before the recording of said lien. (Ord. 00-03 § 1 (part), 2000.)