Loading...
HomeMy WebLinkAbout11152019 City Council Special Mtg Packet Seward City Council Agenda Packet Special City Council Meeting Friday, November 15, 2019 Council Chambers, City Hall 12:00 p.m. SPECIAL MEETING REQUEST Pursuant to Seward City Code 2.10.030 (2), this is to serve as the written notice calling a Special City Council Meeting on Friday, November 15, 2019 at 12:00 p.m. for the purpose of: Resolution 2019-109, Authorizing The City Of Seward To Join The Alaska Remote Seller Sales Tax Commission For The Purpose Of Developing, Implementing, And Enforcing A Remote Seller Sales Tax Code And Designating The Seward City Manager As The City's Commission Representative. The meeting will commence in the City Council Chambers, City Hall, 410 Adams Street, Seward. All interested persons are invited to attend the meetings. Signed this 13"' day of November, 2019 at 9:00 a.m. Mayor er 2 Council Members Upon this request the City Clerk will give due and proper notice as required by SCC 2.10.032 (No business shall be transacted other than stated above.) SPECIAL MEETING NOTICE Pursuant to Seward City Code 2.10.030 (2), this is to serve as the written notice calling a Special City Council Meeting on Friday, November 15, 2019 at 12:00 p.m. for the purpose of: Resolution 2019-109, Authorizing The City Of Seward To Join The Alaska Remote Seller Sales Tax Commission For The Purpose Of Developing, Implementing, And Enforcing A Remote Seller Sales Tax Code And Designating The Seward City Manager As The City's Commission Representative. The meeting will commence in the City Council Chambers, City Hall, 410 Adams Street, Seward. All interested persons are invited to attend the meetings. Posted: Wednesday, November 13, 2019 at 9:00 a.m. City Hall bulletin board U.S. Post Office Harbormaster's Building Seward Community Library Museum The City of Seward, Alaska Special City Council Meeting Friday,November 15, 2019 12:00 p.m. Christy Terry 1. Call To Order Mayor Term Expires 2022 2. Pledge Of Allegiance Sue McClure 3. Roll Call Vice Mayor Term Expires 2020 4. Citizen Comments On Any Subject Except Those Items Scheduled For Public Hearing. [Those Who Have Signedln WillBe Sharyl Seese Given The First Opportunity To Speak. Total Time For This Agenda Item is Council Member 36 Minutes.] Term Expires 2021 5. Approval Of Agenda And Consent Agenda[Approval of Consent Agenda passes all routine items indicated by asterisk(*). Consent Agenda John Osenga items are not considered separately unless a council member so requests. In Council Member the event of such a request, the item is returned to the Regular Agenda.] Term Expires 2021 6. New Business Kelley Lane C A. Resolutions Council Member Term Expires 2020 Resolution 2019-109,Authorizing The City Of Seward To Join Dale Butts The Alaska Remote Seller Sales Tax Commission For The Council Member Purpose Of Developing, Implementing, And Enforcing A Term Expires 2022 Remote Seller Sales Tax Code And Designating The Seward City Manager As The City's Commission Representative. Tony Baclaan Council Member 7• Council Comments Term Expires 2022 8. Citizen Comments 9. Council And Administration Response To Citizen Comments Scott Meszaros 10. Adjournment City Manager Brenda Ballou City Clerk Holly Wells City Attorney Citv of Seward, Alaska Council Agenda November 15, 2019 Page I Sponsored by: Meszaros CITY OF SEWARD,ALASKA RESOLUTION 2019-109 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, AUTHORIZING THE CITY OF SEWARD TO JOIN THE ALASKA REMOTE SELLER SALES TAX COMMISSION FOR THE PURPOSE OF DEVELOPING, IMPLEMENTING, AND ENFORCING A REMOTE SELLER SALES TAX CODE AND DESIGNATING THE SEWARD CITY MANAGER AS THE CITY'S COMMISSION REPRESENTATIVE WHEREAS, the inability to effectively collect sales tax on sales of personal property, products, or services transferred or delivered into Alaska by a remote seller in response to orders placed electronically by local consumers is eroding the sales tax base of Alaska communities and resulting in revenue losses that is causing imminent harm to residents through the loss of critical funding for local education; and WHEREAS, the harm from the loss of revenue is especially problematic in Alaska because the state has no broad-based tax, and sales tax revenues are essential in funding the provision of services by local governments; and WHEREAS, the failure to collect tax on remote sales creates artificial market distortions and competitive advantages for remote sellers by perpetuating tax shelters for businesses that limit their physical presence in the state or its municipalities, but still sell goods and services to local consumers, something that becomes easier and more prevalent as technology continues to advance; and WHEREAS, the structural advantages for remote sellers, including the absence of point- of-sale tax collection, combined with the general growth of online retail, means that the erosion of the sales tax base is a growing problem that will only worsen in the near future if the Borough is not able to legally collect remote seller sales tax within the framework of current United States Supreme Court case law; and WHEREAS, the recent decision by the United States Supreme Court in South Dakota v. Wayfair allows for the amendment of the sales tax code to account for remote sellers who do not have a physical presence in either the State of Alaska or within the Kenai Peninsula Borough, but do have a taxable connection with those jurisdictions; and WHEREAS, the decision in South Dakota v. Wavfair provided guidance that included the defensibility of a single-level statewide administration of remote sales tax collection and remittance; and WHEREAS, remote sellers who make a substantial number of deliveries into or have large gross revenues from Alaska benefit extensively from the Alaska market, affecting the CITY OF SEWARD,ALASKA RESOLUTION 2019-109 economy generally, as well as local infrastructure; and WHEREAS, modern computing and software options ensure that it is neither unusually difficult nor a substantial burden for remote sellers to collect and remit sales taxes associated with sales into Alaska taxing jurisdictions; and WHEREAS, in order to implement a single-level statewide sales tax administration, it is the intent of numerous local taxing jurisdictions within Alaska to establish an intergovernmental entity known as the Alaska Remote Seller Sales Tax Commission (the "Commission"); and WHEREAS, the function and powers of the Commission will be set forth in the Alaska Intergovernmental Remote Seller Sales Tax Agreement (the "Agreement"), a cooperative agreement between Commission members; and WHEREAS, under the terms of the Agreement, in order to maintain membership in the Commission, the Borough will be required to adopt certain uniform code provisions for the collection and remittance of municipal sales tax applicable to sales made by remote sellers; and WHEREAS, the uniform remote sales tax code will be presented to the Borough Assembly for consideration once adopted by the Commission to comply with guidance found in the Waypir decision; and WHEREAS, if adopted, the administration of remote sales tax collection and remittance will be delegated to the Commission; and WHEREAS, the intent of the Agreement is to enable Alaska's taxing jurisdictions to levy their municipal sales tax to the maximum limit of federal and state constitutional doctrines; and WHEREAS, Article X, Section 13 of the Alaska Constitution authorizes local government to enter into agreements for the cooperative or joint administration of any function or power, unless otherwise prohibited by law or charter; WHEREAS, in addition, AS 29.35.010(13) provides authority for the Borough to enter into intergovernmental cooperative agreements for the joint administration of a borough function or power; WHEREAS, the purpose of being an early member of the Commission is to have a voice during the formation process while not committing to any future obligation or action; and WHEREAS, a member will be able to withdraw from the Commission if the adopted bylaws, uniform code, or fees are not acceptable to the member municipality. CITY OF SEWARD,ALASKA RESOLUTION 2019-109 NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD,ALASKA that: Section 1. The city manager is hereby authorized to negotiate, execute, and submit all necessary documents to obtain and maintain membership in the Alaska Remote Seller Sales Tax Commission, including the Alaska Intergovernmental Remote Seller Sales Tax Agreement, included as Attachment A, to this resolution. Section 2. The City Manager is designated as the City's representative on the Commission. Section 3. This resolution shall take effect immediately upon adoption. PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 15th day of November, 2019. THE CITY OF SEWARD,ALASKA Christy Terry, Mayor AYES: NOES: ABSENT: ABSTAIN: ATTEST: Brenda J. Ballou, MMC City Clerk (City Sea]) DocuSign Envelope ID:21BB766A-CD84-474D-8363-8993504AAOBE Kenai Peninsula Borough Finance Department MEMORANDUM TO: Kelly Cooper, Assembly President Members, Kenai Peninsula Borough Assembly THRU: Charlie Pierce, Mayor AT FROM: Brandi Harbaugh, Finance Director SK Sean Kelley, Deputy Borough Attorney DATE: October 24, 2019 SUBJECT: Resolution 2019-,05bAuthorizing the Kenai Peninsula Borough to Join the Alaska Remote Seller Sales Tax Commission for the Purpose of Developing, Implementing, and Enforcing a Remote Seller Sales Tax Code and Designating the Commission Representative (Mayor) This resolution authorizes the borough administration to execute the Alaska Intergovernmental Remote Seller Sales Tax Agreement (the "Agreement") and become a member municipality of the Alaska Remote Seller Sales Tax Commission (the "Commission"). This resolution also designates the borough's representative on the Commission. The formation of and membership in the Commission is the first step toward implementing a single-level administrator for the collection and remittance of remote seller sales taxes. A single-level administrator of remote seller sales taxes is a necessary long-term solution if the borough wants to collect remote seller, or "e-commerce", sales tax. The inability to effectively collect sales tax on sales of personal property, products, or services transferred or delivered into the borough by a remote seller in response to orders placed electronically by local consumers is eroding the sales tax base of Alaska's communities. The resulting revenue losses are causing imminent harm to residents through the loss of critical funding for local education. The failure to collect tax on remote sales results in artificial market distortions and competitive advantages for remote sellers through perpetuating tax shelters for businesses that limit their physical presence but still sell goods and services to local consumer, which gains more and more prevalence as technology continues to advance. The recent decision by the United States Supreme Court in South Dakota v. Wayfair allows for amendment of the sales tax code to account for remote sellers who do not have a physical presence in a taxing jurisdiction, but do have a taxable connection with those jurisdictions. The decision in South Dakota v. DocuSign Envelope ID:21BB766A-CD84-474D-8363-8993504AAOBE Page -2- October 24, 2019 Re" R2019- 05(n Wayfair provided guidance that included the defensibility of a single-level statewide administration of remote sales tax collection and remittance. Remote sellers who make a substantial number of deliveries into or have large gross revenues in Alaska benefit extensively from the Alaska market, affecting the economy generally, as well as local infrastructure. Modern computing and software options ensure that it is neither unusually difficult nor a substantial burden for remote sellers to collect and remit sales taxes associated with sales into Alaska taxing jurisdictions. In the absence of state legislative action, in order to implement a single-level statewide sales tax administration, it is the intent of participating local taxing jurisdictions within Alaska to establish an intergovernmental entity (the "Commission"). The function and powers of the Commission will be set forth in the Agreement. Under the terms of the Agreement, in order to maintain membership in the Commission, the borough will be required, through a separate ordinance, to adopt certain uniform code provisions for the collection and remittance of municipal sales tax applicable to sales made by remote sellers. Article X, Section 13 of the Alaska Constitution authorizes local government to enter into agreements for the cooperative or joint administration of any function or power, unless otherwise prohibited by law or charter. In addition AS 29.35.010(13) provides authority for the borough to enter into intergovernmental cooperative agreements for the joint administration of a borough function or powers. The intent of the Agreement is to enable Alaska's taxing jurisdictions to levy their municipal sales fax as now allowed by federal constitutional doctrines. The uniform remote sales tax code will be presented to the assembly for consideration once adopted by the Commission. If the uniform code is adopted by the assembly, the administration of remote sales tax collection and remittance will be delegated to the Commission. To be clear, this resolution only authorizes entry into the Commission and a "seat at the table" during the formation process. As an initial Commission member, the borough will have a voice in drafting and adopting Commission bylaws, and a uniform remote seller sales tax code, and will elect the Commission's Board of Directors. Once the Commission is formed and bylaws are adopted, and before collections may begin, subsequent legislation will come before the assembly that would adopt the uniform code, address questions of fees for participation, and delegate remote seller sales tax administration, collection, audit, and enforcement authority to the Commission. w 0 Co M. C cD [D 3e rm C rr � � � � M �' o. � yEr � � ova CD rD 0 -ems ^• ° can y O p. �- w y a. 0 o- 3 y �" w �' coo ° p' N �' cr as n �• c� � 0 V ° p- o °' �, � C � as � � � r"'• � � � o a a. p co Cr n Q. CA 0 CDCD ^ •- cn 'ti �„ cn o r: o co CD ¢- CD w f° 0 C r* 7ptS A; Cam„ �-• v, cn rn CD 0 CA 0 cn CD CL CD cD a w 0 0 0 0 0Lno y o CD P El w O o = y 0 CD o C voCD Ci o (A Q' Dr oCD 0 CD �_ 0k '� ?4 CD m a o00In CD En o c o C4 w o o -°� a, o cn ° ... ... �. �. CD 0 as = o ca �y. CD PD � cr a , JCL tin UO 0 0 n N '� tintn ° cCA o r° ° o a ° vo .. .-. G G voi a o c<v o `< rj cD 0 c i 0 w En 0 0 c ~o ° En cco o m g c . cD Ln C � > r a CD te ego � O z r-L � n w EL- T C v��i rho = 0 0 CD .-" p, ^ CD O C� ... cD cD R o COco a ° LZ 0 CD w Co IrD 14' ° (D � k a g fl- :h y� l�1 cu o 0 3 n t° cn w CA a. o � y cD a o a ,0 y. y '0 c -+ 5 .0 � e Roa cu w y caD �e > a C] cD a- o C" '' Q e a CA 93c c`9D CDul CA cn CA O ° Cd p w rt' y .,. O. tm ., a .� CD n CD O 0 n w n Y O `° w O EL O o C� o CD E3 .° '° m f 1 G co � ro ... , a w v, w "� G ... cn CD �. w E. cD o' w Q' f° a CD �. o °e Q �_ ° c ° o a ^o a ° < CD CD ° cCL CD n CD n Q 0 o 0 C o w ►Oys y co CL N rTr O �. N o .°O CD =' Q vCDi w Cr1 y CD ° 0 O Cr .CDy a Ln t< P.M v � o' ro w CD CD ° K Cb _ CA CC O n "I