Chapter 4.20 SALES TAX

The city of Utqiaġvik temporarily suspends the provisions of this chapter with the exception of the sale and use tax relating to importation of alcohol from July 1, 2004 until June 30, 2005 in exchange for payment by the North Slope Borough of five hundred thousand dollars. (Ord. 02-2017 §2(part); Ord. 2004-05 §4: Ord. 2004-04 §4: Ord. 2003-02 §5: Ord. 2001-10 §4: Ord. 2000-04 §4: Ord. 99-09 §4: Ord. 98-06 §4)

4.20.010 Definitions. Revised 7/18

As used in this chapter:

A. “Business” means any activity engaged in by any person, or caused to be engaged in by him or her, with the object of gain, benefit or advantage, either direct or indirect.

B. “Cost price” means the actual cost of an item or article of tangible personal property computed in the same manner as gross proceeds in subsection F of this section.

C. “Distribution” includes the transfer or delivery of tangible personal property for use, consumption or storage by the distributee, and the use, consumption or storage of tangible personal property by a person who has processed, manufactured, refined or converted the property, but does not include the transfer or delivery of tangible personal property for resale or any use, consumption or storage otherwise exempt under this chapter.

D. “Employee” means a person receiving for consideration for services rendered an employer, and who is entitled to workers’ compensation coverage from the employer, and whose employer makes all normal deductions from the employee’s compensation including, but not limited to, state and federal withholding, social security, unemployment and employment security benefits.

E. “Employer” means a person receiving services from an employee.

F. “Gross proceeds” means the total amount for which tangible personal property or services are sold, for which tangible personal property is rented, valued in money, whether paid in money or otherwise, and includes any amount for which credit is given to the purchaser, consumer or lessee by the dealer, without any deduction therefrom on account of the cost of the property sold, the cost of materials used, labor or service costs (whether incurred in the manufacture or installation of tangible personal property or otherwise), transportation charges, losses or any other expenses whatsoever, but cash discounts allowed and taken on sales are not included in the gross proceeds, nor shall gross proceeds include finance charges, carrying charges, service charges or interest from credit extended on sales of tangible personal property under conditional sales contracts or other conditional contracts providing for deferred payments of the purchase price, nor shall gross proceeds include federal retailer’s excise tax or state excise taxes if the taxes are levied on the article. If used articles are taken in trade, or in a series of trades as a credit or part payment on the sale of new or used articles, the tax levied by this chapter shall be paid on the net difference between the gross proceeds derived from the new or used articles and the credit for the used articles.

G. “Import” and “imported” apply to tangible personal property imported into this city from other areas in the state and from other states as well as from foreign countries, and “export” and “exported” apply to tangible personal property exported from this city to other areas within the state or other states as well as to foreign countries.

H. “In this city” or “in the city” means within the exterior limits of the city.

I. “Lease or rental” means the leasing or renting of tangible personal property and real property and the possession or use thereof by the lessee or rentee for a consideration, without transfer of the title to the property.

J. “Mayor” means the chief administrative officer of the city or his designee.

K. “Person” means any individual, firm, copartnership, cooperative, nonprofit membership corporation, joint venture, association, corporation, estate, trust, business trust, trustee in bankruptcy, receiver, auctioneer, syndicate, assignee, club, society, or other group or combination acting as a unit, body politic or political subdivision, whether public or private, or quasi-public, and the plural as well as the singular.

L. “Resident” means any person who is within the city.

M. “Retailer” means every person engaged in the business of making retail sales of tangible personal property and taxable services as defined in this chapter.

N. “Retail sale” or “sale at retail” means a sale to a consumer or to any person for any purpose other than for resale in the form of tangible personal property or services taxable under this chapter, and includes any such transaction as the mayor, upon investigation, finds to be in lieu of a sale, but sales for resale must be made in strict compliance with rules and regulations made under this chapter. Any person making a sale for resale which is not in strict compliance with such rules and regulations shall himself be liable for any payment of the tax. “Retail sale” or “sale at retail” includes but is not limited to:

1. Cash or in-kind payment for the sale or charges for any room or rooms, lodging, accommodations or board furnished by an owner or contractor in any hotel, motel, inn, industrial facility, tourist camp, tourist cabin, camping grounds, club or any other place in which rooms, lodging, space, or accommodations or board are regularly furnished to transients or residents for consideration. In case of such rooms, lodging, space, accommodations or board furnished by owners or contractors, the owner or contractor shall pay the tax. Rates shall be determined as follows:

a. For rooms, lodging, space or accommodations provided to persons in kind, the city shall determine the daily rate per person for lodging within each camp or facility prorating the cost of operation and maintenance of the facilities which have a daily rental rate;

b. For board provided to persons in kind, the city shall determine the per-meal rate for subsistence provided within any camp or facility considering the cost of operation;

2. Sales of tangible personal property to persons for resale if, because of the operation of the business or its very nature, or the lack of a place of business in which to display a certificate of registration, or the lack of a place of business in which to keep records, or the lack of adequate records, or because the persons are minors or transients, or because the persons are engaged in essentially service businesses, or for any other reason, there is likelihood that the city will lose tax funds due to the difficulty of policing the business operations. The mayor may promulgate rules and regulations requiring vendors or sellers to such persons to collect the tax imposed by this chapter on the cost price of the tangible personal property to such persons and may refuse to issue certificates of registration to such persons;

3. The rendition of any taxable service.

O. “Sale” means any transfer of title or possession, or both, exchange, barter, lease or rental, conditional or otherwise, in any manner or by any means whatsoever, of tangible personal property and any rendition of a taxable service for consideration, and includes the fabrication of tangible personal property for consumers who furnish, either directly or indirectly, the materials used in fabrication and the furnishing, preparing or serving for a consideration of any tangible personal property consumed on the premises of the person furnishing, preparing or serving such tangible personal property. A transaction whereby the possession of property is transferred, but the seller retains title as security for the payment of the price, is a “sale.”

P. “Storage” means any keeping or retention of tangible personal property for use, consumption or distribution at retail in the regular course of business.

Q. “Tangible personal property” means personal property which may be seen, weighed, measured, felt or touched, or is in any other manner perceptible to the senses. “Tangible personal property” does not include stocks, bonds, notes, insurance or other obligations or securities.

R. “Taxable sale” means:

1. In the case of tangible personal property, a sale of each normally constituted unit, or if not a unit, each item; in the case of fungible goods, each unit or fraction thereof of the goods constitutes a separate sale. Following are examples of separate taxable sales:

a. A tractor is a unit.

b. An automobile is a unit with accessory attachments not listed as standard equipment considered to be separate items.

c. A carburetor sold assembled is a unit.

d. A sparkplug is a separate item.

e. A separate segment of pipe which can be moved in one piece is a separate item.

f. Each long distance telephone call is a separate item.

g. Each gallon of gasoline is a separate item.

h. Each quart of lubricating oil is a separate item;

2. In the case of renting or leasing tangible personal property:

a. For heavy construction equipment (cranes, tractors, dump trucks, scrapers, drill rigs, etc.), each hour or fraction thereof is a separate sale.

b. For medium or small construction equipment and light vehicles (compressors, portable generators, vans, buses, automobiles, etc.), each day or fraction thereof is a separate sale.

c. For aircraft, each hour or fraction thereof is a separate sale.

d. For all other items, taxable sales units are to be determined by the mayor;

3. In the case of renting or leasing real property, the charges made for each whole day or fraction thereof, or when the rental or lease agreement is for a period longer than one day, the prorated daily charge is a separate sale.

S. “Taxable service” means any service whatsoever, whether professional, personal, pursuant to contract, subcontract or otherwise, excluding only services rendered by an employee to an employer.

1. In the case of services for which charges are based upon the time expended in providing the service, each hour or fraction thereof is a separate sale. If the contract amount is based upon a rate for a period longer than an hour, the prorated hourly charge is a separate sale.

2. In all other cases, each item of taxable service is a separate sale. For example, the dry cleaning of six suits of clothes is six separate sales.

T. “Use” means the processing, storage, consumption, transportation, distribution or other use of personal property within the city if such property has not been the subject of a transaction taxed under this chapter, but which would have been a transaction subject to such taxation had the acquisition by the user of the property been a purchase within the city, without regard to whether the transaction, acquisition or purchase within the city would have been lawful or unlawful; provided, the personal property to which this definition applies does not include natural resources acquired by severance though the labor of the user or acquired as a gift from the person who severed the property from its natural habitat.

U. “Value” means the value of the property in the city and is the price at which the property may be purchased in the city in a sale between a willing buyer and a willing seller, both knowledgeable as to the property and the market for the property in the city; except, for alcohol which may be brought into the city but may not be sold in the city, the value is the regular retail price of the alcohol in Fairbanks, Alaska, plus all shipping and handling charges that would ordinarily be charged for the shipment of such alcohol from the city of Fairbanks to a recipient in the city of Utqiaġvik. (Ord. 02-2017 §2(part); Ord. 99-08 §2; Ord. 88-7 §3(part): Ord. 78-17 §3(part): prior code §3.32.010)

4.20.020 Administration.

The mayor shall administer and enforce the assessment and collection of the taxes and penalties imposed by this chapter. He shall design, prepare, print and furnish to all dealers, or make available to them, all necessary forms for filing returns, together with instructions to assure a full collection from dealers and an accounting of the taxes due, but failure of any dealer to receive or procure forms or instructions or both shall not relieve him from the payment of the tax at the time and in the manner provided in this chapter. (Ord. 88-7 §3(part): Ord. 78-17 §3(part): prior code §3.32.020)

4.20.030 Rules and regulations.

The mayor may make and publish reasonable rules and regulations for the enforcement of the provisions of this chapter and the collection of the revenue under this chapter. (Ord. 88-7 §3(part): Ord. 78-17 §3(part): prior code §3.32.030)

4.20.040 Confidentiality.

Except in accordance with proper judicial order, or as provided by law, it is unlawful for the mayor or any agent, auditor or other officer or employee to divulge or make known in any manner the amount of sales, the amount of tax paid, or any other particulars set forth or disclosed in any return required by this chapter. Nothing in this chapter shall be construed to prohibit the publication of statistics so classified as to prevent the identity of particular reports or returns and the items thereof, or the inspection by the legal representative of this city of the report or return of any taxpayer who applied for a review or appeal from any determination or against whom an action or proceeding is about to be instituted or has been instituted to recover any tax or penalty imposed by this chapter. (Ord. 88-7 §3(part): Ord. 78-17 §3(part): prior code §3.32.040)

4.20.050 Exchange of information.

Notwithstanding the provisions of Section 4.20.040, the mayor may furnish to the tax officials of the state or its political subdivisions, or any other state and its political subdivisions, the District of Columbia and the United States and its territories any information contained in tax returns and reports and related schedules and documents filed pursuant to this chapter, or the report of an audit or investigation made with respect thereto; provided, that the jurisdictions grant similar privileges to this city and that the information is to be used only for tax purposes. (Ord. 88-7 §3(part): Ord. 78-17 §3(part): prior code §3.32.050)

4.20.060 Imposed – Rate – Disputes.

A. There is levied and imposed, in addition to all other taxes and fees of every kind now imposed by law, a license or privilege tax upon every person who engages in this city in the business of selling at retail tangible personal property or of leasing or renting taxable services, the same to be collected in the amount of three percent of the gross proceeds of each taxable sale.

B. In cases of disputes as to what constitutes a taxable sale or taxable service or the units by which either is measured, the decision of the mayor shall be final and binding subject to the taxpayer’s appeal to the superior court. (Ord. 88-7 §3(part): Ord. 78-17 §3(part): prior code §3.32.060)

4.20.070 Exclusions and exemptions.

A. “Retail sale,” “sale at retail” or “sale” does not include the sale of:

1. School lunches sold and served to pupils and employees of schools and subsidized by the government, school textbooks sold by a local school board or authorized agency thereof, and school textbooks sold by a college or other institution of learning, not conducted for profit, for the use of students attending the institution of learning;

2. Tangible personal property not held or used by a seller in the course of an activity for which he is required to hold a certificate of registration, sometimes referred to as “casual sales”;

3. Tangible personal property and taxable services for use or consumption directly by the United States, the state, borough or the city. This exclusion shall not apply to sales and leases to privately owned financial and other privately owned corporations chartered by the United States, the state, borough or this city;

4. Sales of groceries for home consumption by residents;

5. Sales of fuel for home consumption by residents;

6. Sales of basic necessities of life in the Arctic, such as clothing, medical supplies, housing supplies, tools and related minor hardware for home consumption by residents;

7. Rental and leases of residential housing units.

B. All exclusions and exemptions set forth in this section shall be applicable to the tax imposed for the storage, use or consumption of tangible personal property within the city. (Ord. 88-7 §3(part): Ord. 78-17 §3(part): prior code §3.32.080)

4.20.080 Collection from dealers.

The tax levied in Sections 4.20.060 and 4.20.070 shall be collected from dealers. In this chapter, “dealer” means:

A. Any person physically located in this borough who:

1. Manufactures or produces tangible personal property for sale at retail, for use, consumption or distribution, or for storage to be used or consumed in this city;

2. Imports or causes to be imported into this city tangible personal property from any state or possession of the United States, political subdivision of the state or foreign country for sale at retail for use, consumption or distribution, or for storage to be used or consumed in the city;

3. Sells at retail, or offers for sale at retail, or has in possession for sale at retail, or for use, consumption or distribution, or for storage to be used or consumed in the city, tangible personal property and taxable services as defined in this chapter;

4. Has sold at retail, or has consumed or distributed, or stored for use or consumption in this city, tangible personal property, or who has performed taxable services, and who cannot prove the tax levied by this chapter has been paid on the sale at retail, the use, consumption, distribution or storage of such tangible personal property or the charge for the rendition of taxable services;

5. Leases or rents tangible personal property and real property as defined in this chapter for consideration, permitting the use or possession of the property without transferring title thereto; and

B. Every other person who:

1. Maintains or has within this city, directly or by an agent or a subsidiary, an office, distributing house, sales room or house, warehouse, industrial and related facilities, or other place of business;

2. Solicits business in this city either by employees, independent contractors, agents or other representatives, and by reason thereof makes sales to persons within this city of tangible personal property, the use of which is taxed by this chapter, and any other person making sales to persons within this city of tangible personal property, the use of which is taxed by this chapter, who may be authorized by the mayor to collect such tax;

3. As a representative, agent or solicitor, for an out-of-borough principal, solicits, receives and accepts orders from persons in this city for future delivery and whose principal refuses to register under this chapter;

4. Becomes liable to and owes the city any amount of tax imposed by this chapter, whether or not he holds or is required to hold a certificate of registration under this chapter. (Ord. 88-7 §3(part): Ord. 78-17 §3(part): prior code §3.32.110)

4.20.090 Construction contractors.

A. Any person who contracts orally, in writing or by purchase order to perform construction, reconstruction, installation, repair or any other service with respect to real estate or fixtures thereon and in connection therewith to furnish tangible personal property or taxable services shall be deemed to have purchased the tangible personal property for use or consumption. Any sale, distribution or lease to or storage for such is a sale, distribution or lease for the ultimate consumer and not for resale, and the dealer making the sale, distribution or lease to or storage for the person shall collect the tax to the extent required by this chapter.

B. Any person who contracts to perform services in this city and is furnished tangible personal property for use under the contract by the person, or his agent or representative, for whom the contract is performed, and if a sales tax has not been paid to the city by the person supplying the tangible personal property, shall be deemed to be the consumer of the tangible personal property so used, and shall pay a tax based on the fair market value of the tangible personal property so used, irrespective of whether or not any right, title or interest in the tangible personal property becomes vested in the contractor.

C. Any person who contracts orally, in writing, or by purchase order to perform any service in the nature of equipment rental, and the principal part of that service is the furnishing of equipment or machinery which will not be under the exclusive control of the contractor, shall be liable for the sales tax on the gross proceeds from such contract to the same extent as the lessor of tangible personal property.

D. Tangible personal property incorporated in the real property construction which loses its identity as tangible personal property is tangible personal property if used or consumed within the meaning of this chapter, and is subject to tax.

E. Nothing in this section affects or limits the resale exclusion provided for in this chapter, nor does anything contained in this chapter impose any sales tax with respect to the use, in the performance of contracts directly with the United States or this state and its political subdivisions, of tangible personal property owned by a governmental body which actually is not used or consumed in the performance thereof. (Ord. 88-7 §3(part): Ord. 78-17 §3(part): prior code §3.32.120)

4.20.100 Registration – Required.

Every person desiring to engage in or conduct business as a dealer in the city shall file with the mayor an application for a certificate of registration for each place of business in the city. The application shall be filed within thirty days after such person becomes responsible to register as a dealer under this chapter. (Ord. 88-7 §3(part): Ord. 78-17 §3(part): prior code §3.32.130)

4.20.110 Registration – Application.

Every application for a certificate of registration shall be made upon a form prescribed by the mayor and shall set forth the name under which the applicant transacts or intends to transact business, the location of his place or places of business, and such other information as the mayor requires. The application shall be signed by the owner if a natural person; in the case of an association or partnership, by a member or a partner; in the case of a corporation, by an executive officer or some person specifically authorized by the corporation to sign the application. (Ord. 88-7 §3(part): Ord. 78-17 §3(part): prior code §3.32.140)

4.20.120 Registration – Certification – Validity.

When required application has been made, the mayor shall certify on the necessary city business license that the applicant has registered the place of business for sales tax collection. Each place of business within the city requires a separate certification. A certificate of registration is not assignable and is valid only for the person in whose name it is issued and for the transaction of business at the place designated therein. It shall be at all times conspicuously displayed at the place for which it was issued. (Ord. 88-7 §3(part): Ord. 78-17 §3(part): prior code §3.32.150)

4.20.130 Registration – Suspension or revocation.

Whenever any person fails to comply with any provision of this chapter or any rule or regulation of the mayor relating thereto, the mayor, upon hearing, after giving such person ten days’ notice in writing, specifying the time and place of hearing and requiring him to show cause why his certificate of registration should not be revoked or suspended, may revoke or suspend any one or more of the certificates of registration held by such person. The notice may be personally served or served by registered or certified mail directed to the last known address of the person. A dealer whose certificate of registration has been previously suspended or revoked or who fails initially to register as a dealer shall pay the city a fee of one hundred dollars for the renewal, issuance or reissuance of a certificate of registration. (Ord. 88-7 §3(part): Ord. 78-17 §3(part): prior code §3.32.160)

4.20.140 Registration – Operation without.

Any person who engages in business as a dealer in the city without obtaining a certificate of registration or after a certificate of registration has been suspended or revoked, and each officer of any corporation which so engages in business, is guilty of a misdemeanor. Each day’s continuance in business in violation of this section is a separate offense. (Ord. 88-7 §3(part): Ord. 78-17 §3(part): prior code §3.32.170)

4.20.150 Registration – Change of address.

If the holder of a certificate of registration ceases to conduct his business at the place specified in his certificate, the certificate expires, and the holder shall inform the mayor in writing within thirty days after he has ceased to conduct the business at that place; but, if the holder of a certificate of registration desires to change his place of business to another place in this city, he shall so inform the mayor in writing, and his certificate shall be revised accordingly. Any holders of certificates that fail to comply with the provisions of this section may, at the discretion of the city council, be denied a future business license and sales tax certificate. (Ord. 88-7 §3(part): Ord. 78-17 §3(part): prior code §3.32.180)

4.20.160 Exemption certificates.

A. All sales or leases are subject to the tax until the contrary is established. The burden of proving that a sale, distribution, lease or storage of tangible personal property is not taxable is upon the person who makes the sale, distribution, lease or storage, unless he takes from the purchaser or lessee a certificate to the effect that the property is exempt under this chapter.

B. The certificate mentioned in this section relieves the person who takes the certificate from any liability for the payment or collection of the tax, except upon notice from the mayor that the certificate is no longer acceptable. The certificate shall be signed by and bear the name and address of the purchaser or lessee, indicate the number of the certificate of registration (if any) issued to the purchaser or lessee, indicate the general character of the taxable service rendered or tangible personal property sold, distributed, leased or stored (or to be sold, distributed, leased or stored under a blanket exemption certificate) and be substantially in such form as the mayor prescribes.

C. If a purchaser or lessee who gives a certificate under this section makes any use of the property other than an exempt use or retention, demonstration or display while holding the property for resale, distribution or lease in the regular course of business, the use is a taxable sale by the purchaser or lessee as of the time the property or service is first used by him, and the cost of the property to him is the sale price of the retail sale. If the sole use of the property other than retention, demonstration or display in the regular course of business is the rental of the property while holding it for sale, distribution or lease, the purchaser shall pay the tax on the cost of the property to him and when the property is sold shall collect and pay the tax on the difference between the cost of the property to him and the retail sales price.

D. If a purchaser gives a certificate under this section with respect to the purchase of fungible goods and thereafter commingles goods with other fungible goods not so purchased, but of such similarity that the identity of the constituent goods in the commingled mass cannot be determined, sales or distribution from the mass of commingled goods is a sale or distribution of the goods so purchased until a quantity of commingled goods equal to the quantity of purchased goods so commingled has been sold or distributed. (Ord. 88-7 §3(part): Ord. 78-17 §3(part): prior code §3.32.190)

4.20.170 Collection from buyers.

A. The tax levied by this chapter shall be paid by the dealer, but the dealer shall separately state the amount of the tax and add the tax to the sales price or charge; and thereafter, the tax shall be a debt from the purchaser, consumer or lessee to the dealer until paid and shall be recoverable at law in the same manner as other debts, but no action at law or suit in equity under this chapter may be maintained in this city by any dealer who is not registered under this chapter, or is delinquent in the payment of the taxes imposed under this chapter.

B. The amount of the tax to be added to the sale price or charges shall be determined in accordance with the following schedule:

Taxable Sale			Tax
Under 35¢			None
$0.36	through	$0.49	$0.01
0.50		0.83	0.02
0.84		1.16	0.03
1.17		1.49	0.04
1.50		1.83	0.05
1.84		2.16	0.06
2.17		2.49	0.07
2.50		2.83	0.08
2.84		3.16	0.09
3.17 and over, continue on the same scale

C. Notwithstanding any exemption from taxes which any dealer enjoys under the Constitution or laws of Alaska or any other state, or of the United States, the dealer shall collect the tax from the purchaser, consumer or lessee and shall pay it over to the city as provided in this chapter.

D. Any dealer who neglects, fails or refuses to collect the tax upon each and every taxable sale, distribution, lease or storage of tangible personal property, or rendition of services made by him, his agents or employees, shall be liable for and pay the tax himself. Also, any dealer who neglects, fails or refuses to pay or collect the tax provided for in this chapter either by himself or through his agents or employees is guilty of a misdemeanor. (Ord. 88-7 §3(part): Ord. 78-17 §3(part): prior code §3.32.200)

4.20.180 Absorption by dealer.

No person shall advertise or hold out to the public, in any manner, directly or indirectly, that he will absorb all or any part of the sales tax, or that he will relieve the purchaser, consumer or lessee of the payment of all or any part of the tax. Any person who violates this section is guilty of a misdemeanor. (Ord. 88-7 §3(part): Ord. 78-17 §3(part): prior code §3.32.210)

4.20.190 Returns – Forms – Schedule.

A. Every dealer required to collect or pay the sales tax on or before the twentieth of the month following the month in which the tax becomes effective shall transmit to the mayor, upon a form prescribed, prepared and furnished by him, a return showing the gross sales, gross proceeds or cost price, as the case may be, arising from all transactions taxable under this chapter during the preceding calendar month. Thereafter, a like return shall be prepared and transmitted to the mayor by every dealer on or before the twentieth day of each month, for the preceding calendar month. The return shall also contain a statement showing the amount in each class of exclusions and exemptions which are not subject to the tax imposed by this chapter or, if the form so provides, the total amount thereof without specifying each class.

B. When the tax for which any dealer is liable under this chapter does not exceed five dollars in any month, or sixty dollars in any annual reporting period, the city manager may permit a dealer upon written application to file an annual return and pay the amount of tax due on the last day of the month following the end of the annual period. When the tax for which any dealer is liable under this chapter does not exceed twenty dollars in any month, or sixty dollars in any annual reporting period, the mayor may permit a dealer upon written application to file a quarterly return and pay the amount of the tax due on the last day of the month following the end of the quarterly period. (Ord. 88-7 §3(part): Ord. 78-17 §3(part): prior code §3.32.220)

4.20.200 Returns – Payment – Delinquency.

At the time of transmitting to the mayor the return required under Section 4.20.190, the dealer shall remit to the city therewith the amount of tax due under the applicable provisions of this chapter after making appropriate adjustments for purchases returned, repossessions, and accounts uncollectible and charged off as provided in Sections 4.20.210, 4.20.220 and 4.20.230. The tax imposed by this chapter for each month becomes delinquent on the day following the twentieth day of the succeeding month if not paid therefor. (Ord. 88-7 §3(part): Ord. 78-17 §3(part): prior code §3.32.230)

4.20.210 Credit – Returned goods.

If purchases are returned to the dealer by the purchaser or consumer after the tax imposed by this chapter has been collected or charged to the account of the purchaser, the dealer is entitled to reimbursement of the amount of tax collected or charged by him, in the manner prescribed by the mayor, but the amount of tax so reimbursed to the dealer shall not include the tax paid upon any purchase retained by the dealer after the return of the merchandise, and if the tax has not been remitted by the dealer, the dealer may deduct it in submitting his return. The dealer shall be issued a refund by the mayor equal to the net amount remitted by the dealer for the tax collected if the dealer can establish that the tax was not due. (Ord. 88-7 §3(part): Ord. 78-17 §3(part): prior code §3.32.240)

4.20.220 Credit – Repossessions.

A dealer who has paid the tax on tangible personal property sold under a retained, conditional sale or similar contract may take credit for the tax paid by him upon the unpaid balance due him when he repossesses the property, the credit to be administered by the mayor in the same manner as provided for returned purchases under Section 4.20.210. When repossessed property is resold, the sale is subject in all respects to this chapter. (Ord. 88-7 §3(part): Ord. 78-17 §3(part): prior code §3.32.250)

4.20.230 Credit – Bad debts.

In any return filed under the provisions of this chapter, the dealer, under rules and regulations prescribed by the mayor, may credit against the tax shown to be due on the return and the amount of sales tax previously returned and paid on accounts which, during the period covered by the current return, have been found to be worthless and actually charged off for federal income tax purposes; except, that if any account so charged off is thereafter in whole or part paid to the dealer, the amount so paid shall be included in the first return filed after the collection and the tax paid accordingly. (Ord. 88-7 §3(part): Ord. 78-17 §3(part): prior code §3.32.260)

4.20.240 Extension for payment.

The mayor may grant an extension, upon written application therefor, to the end of the calendar month in which any tax return is due under this chapter or for a period not exceeding thirty days, and no interest or penalty shall be charged, assessed or collected by reason of the granting of the extension, except that when an extension is granted beyond the end of the calendar month in which any tax return is due, interest on the tax at the rate of 0.66 percent per month, or fraction thereof, shall be charged. (Ord. 88-7 §3(part): Ord. 83-8 §3 (20); Ord. 78-17 §3(part): prior code §3.32.270)

4.20.250 Failure to pay – Fraud.

When any dealer fails to make any return and pay the full amount of the tax required by this chapter, there shall be imposed, in addition to other penalties provided in this chapter, a specific penalty to be added to the tax in the amount of one hundred dollars and ten percent of the tax due if the failure is for not more than thirty days, with an additional five percent for each additional thirty days, or fraction thereof, during which the failure continues, not to exceed twenty-five percent in the aggregate; but, if the failure is due to good cause shown to the satisfaction of the mayor, the return with remittance may be accepted exclusive of penalties. In the case of a false or fraudulent return, where willful intent exists to defraud the city of any tax due under this chapter, a specific penalty of fifty percent of the amount of the proper tax shall be assessed. All penalties and interest imposed by this chapter shall be payable by the dealer and collectible by the mayor as if they were a part of the tax imposed, and shall be in addition to any criminal penalty which may be imposed. (Ord. 88-7 §3(part): Ord. 78-17 §3(part): prior code §3.32.280)

4.20.260 Failure to make return – Assessment.

If any dealer fails to make a return as provided by this chapter, or makes a grossly incorrect return, or a return that is false or fraudulent, the mayor shall make an estimate for the taxable period of the retail sales or distributions of the dealer, or of the gross proceeds from leases of tangible personal property, or taxable services by the dealer, and assess the tax, plus penalties. The mayor shall give the dealer ten days’ notice in writing requiring the dealer or an assistant to appear before him with such books, records and papers as he requires relating to the business of the dealer for the taxable period. The mayor may require the dealer or the agents and employees of the dealer to give testimony or to answer interrogatories under oath to be administered by the mayor or his assistants respecting the sale, distribution, lease, use, consumption or storage of tangible personal property, or taxable services, or the failure to make any return thereon as provided in this chapter. If any dealer fails to make any return or refuses to appear and answer questions within the scope of an investigation relating to the sale, distribution, lease, use, consumption or storage of tangible personal property or taxable services, the mayor may make the assessment based upon information available to him. The assessment shall be presumed to be correct. (Ord. 88-7 §3(part): Ord. 78-17 §3(part): prior code §3.32.290)

4.20.270 Dealer records.

Every dealer required to make a return and pay or collect any tax under this chapter shall keep and preserve suitable records of the sales, leases or other books of account as necessary to determine the amount of tax due under this chapter, and other pertinent information as required by the mayor. Every dealer shall keep and preserve for a period of four years all invoices and other records of goods, wares and merchandise, or other subjects of taxation under this chapter, and all the books, invoices and other records shall be open to examination at all reasonable hours by the mayor or any of his duly authorized agents. (Ord. 88-7 §3(part): Ord. 78-17 §3(part): prior code §3.32.300)

4.20.280 Selling or quitting business.

If any dealer liable for any tax, penalty or interest levied under this chapter sells out his business or stock of goods or quits the business, he shall make a final return and payment within fifteen days after the date of selling or quitting the business. The return shall include any sales made at retail during liquidation. His successors or assigns, if any, shall withhold sufficient purchase money to cover the amount of taxes, penalties and interest due and unpaid until the former owner produces a receipt from the mayor showing that they have been paid or a certificate stating that no taxes, penalties or interest are due. If the purchaser of a business or stock of goods fails to withhold the purchase money as provided in this section, he shall be personally liable for the payment of the taxes, penalties and interest due and unpaid on account of the operation of the business by any former owner. (Ord. 88-7 §3(part): Ord. 78-17 §3(part): prior code §3.32.310)

4.20.290 Bond for payment.

The mayor, if necessary and advisable in order to secure the collection of the tax levied by this chapter, may require any person subject to the tax to file with him a bond of a surety company authorized to do business in the state as surety, in such reasonable amount as the mayor fixes, to secure the payment of any tax, penalty or interest due or which may become due from the person. In lieu of a bond, securities approved by the mayor may be deposited with the city clerk, which securities shall be kept in the custody of the city clerk, and shall be sold by the city clerk at the request of the mayor at public or private sale, without notice to the depositor thereof if necessary in order to recover any tax, penalty or interest due the city under this chapter. Upon the sale, the surplus, if any, above the amounts due under this chapter, shall be returned to the person who deposited the securities. (Ord. 88-7 §3(part): Ord. 78-17 §3(part): prior code §3.32.320)

4.20.300 Jeopardy assessment.

If the mayor deems that the collection of any tax or any amount of tax required to be collected under this chapter may be jeopardized by delay, he shall make an assessment of the tax or amount of tax required to be collected and shall mail or issue a notice of the assessment to the taxpayer together with a demand for immediate payment of the tax or of the deficiency in tax declared to be in jeopardy, including penalties. In the case of a tax for current period, the mayor may declare the taxable period of the taxpayer immediately terminated and shall cause notice of such finding and declaration to be mailed or issued to the taxpayer together with a demand for immediate payment of the tax based on the period declared terminated, and the tax shall be immediately due and payable, whether or not the time otherwise allowed by law for filing a return and paying the tax has expired. Assessments provided for in this section shall become immediately due and payable, and if any tax, penalty or interest is not paid upon demand of the mayor, he shall proceed to collect it by legal process or, in his discretion, he may require the taxpayer to file a bond sufficient to protect the interest of the city. (Ord. 88-7 §3(part): Ord. 78-17 §3(part): prior code §3.32.330)

4.20.310 Suit for collection.

The mayor, when any tax becomes delinquent under this chapter, shall file suit for its collection, together with the collection of any penalties due thereon, within one hundred twenty days after such tax originally became due and payable. Nothing in this section shall bar the filing of any such action later than such time, nor shall anything in this section constitute a defense to any such suit filed after such time. (Ord. 88-7 §3(part): Ord. 78-17 §3(part): prior code §3.32.340)

4.20.320 Errors.

Upon any claim of an erroneous or illegal assessment or collection, the taxpayer shall have any remedy available at law. Such remedies are applicable to all sales taxes imposed under this chapter. (Ord. 88-7 §3(part): Ord. 78-17 §3(part): prior code §3.32.350)

4.20.330 Period of limitation.

The taxes imposed by this chapter shall be assessed within three years from December 31st of the year in which the taxes become due and payable; but in the case of a false or fraudulent return with intent to evade payment of the taxes imposed by this chapter, or a failure to file a return, the taxes may be assessed or proceeding in court for the collection of such taxes begun without assessment, at any time within six years from December 31st of the year in which the taxes become due and payable. (Ord. 88-7 §3(part): Ord. 78-17 §3(part): prior code §3.32.360)

4.20.340 Violation – Misdemeanor.

Any dealer subject to the provisions of this chapter who fails or refuses to furnish any return required in this chapter to be made, or fails or refuses to furnish a supplemental return or other data required by the mayor, or who makes a false or fraudulent return with intent to evade the tax levied in this chapter, or who makes a false or fraudulent claim for refund, or who gives or knowingly receives a false or fraudulent exemption certificate, or who violates any other provision of this chapter, punishment for which is not otherwise provided in this chapter, is guilty of a misdemeanor, and is subject to a fine of five hundred dollars, imprisonment for thirty days, or both. (Ord. 88-7 §3(part): Ord. 83-8 §3(21); Ord. 78-17 §3(part): prior code §3.32.370)

4.20.350 Use tax.

A. There is levied and shall be collected a use tax on the use within the city of personal property purchased, received or otherwise acquired or received from outside the city. The use tax rate is the rate equal to the sales tax rate set out in Section 4.20.060(A). The use tax shall be computed by multiplying the use tax rate times the value of the personal property used. The owner, importer and the recipient of the property are deemed to be the user of the property and shall be jointly and severally liable for the payment of the use tax; provided, the user of the property is entitled to a credit against the use tax in an amount equal to the sales tax the user paid in another state or municipal jurisdiction on the purchase or other acquisition transaction in the jurisdiction in which the property was purchased or otherwise acquired by the user. The credit is available only if the user is able to prove to the satisfaction of the mayor or mayor’s designee that the user actually paid the claimed amount of the sales tax prior to the taxable use of the property in the city.

B. For so long and during such times as the city meets the requirements of AS 04.21.010(c)(4), as amended or as replaced, the use tax as applied to alcohol shall be deemed levied pursuant to the authorization in AS 04.21.010(c)(4) or pursuant to such other statutory provision as may directly or indirectly authorize the levy of the city’s use tax on the use of alcohol under the conditions relevant to the levy at the time the use occurs.

1. Alcohol required to be delivered to a community alcohol delivery site pursuant to the authority granted under AS 04.11.491(f), as amended or replaced, or under other authority is subject to the use tax which shall be collected by the delivery site prior to the delivery of the alcohol to its owner. For the purpose of collecting, accounting for and paying the use tax over to the city, a private person who operates a city delivery site under contract with the city shall be treated as if the person were a “dealer” or other person making sales subject to the sales tax provisions of this chapter.

2. Alcohol brought into the city that is not delivered or redelivered to its owner through a delivery site is subject to the use tax which shall be paid to the city within two business days of the day the alcohol is brought into the city. The persons who own, import or receive such alcohol are jointly and severally liable for the use tax. The mayor shall establish such regulations, forms and procedures as may be necessary to ensure the accurate and timely reporting of such alcohol importation and the timely payment of the use tax due on such alcohol use. A person liable for the payment of the use tax under this subsection (B)(2) shall pay a penalty of ten times the delinquent tax amount in addition to interest on the delinquent amount at the rate of fifteen percent per annum.

C. Procedures, rights and remedies applicable to the collection and payment of sales tax under this chapter may be applied to the collection and payment of the use tax to the extent such procedures, rights and remedies are not specifically covered by this section and are not in conflict with the use tax levy or the provisions of this section. (Ord. 99-08 §3)