HomeMy WebLinkAbout11152019 City Council Special Mtg Laydown - Model Resolution ill 15/19 Spec ;
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Presented by:
Introduced:
Drafted by:
MODEL RESOLUTION
Serial No.XXXX
A Resolution Authorizing the [Taxing Jurisdiction] to Join the Alaska Remote
Seller Sales Tax Commission for the Purpose of Developing, Implementing,
and Enforcing a Remote Sellers Sale Tax Code
WHEREAS, the inability to effectively collect sales tax on sales of property, products or
services transferred or delivered into Alaska in response to orders placed electronically by
consumers with remote sellers, is seriously eroding the sales tax base of communities, causing
revenue losses and imminent harm to residents through the loss of critical funding for local public
services and infrastructure; and
WHEREAS,the harm from the loss of revenue is especially serious 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 market distortions by creating tax
shelters for businesses that limit their physical presence in the state or cities and boroughs but still
sell their goods and services to their 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, along with the general growth of online retail, make clear that erosion of the sales
tax base is and has been occurring and is a growing problem that is likely to only worsen in the
near future; 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 economy
generally, as well as local infrastructure; and
WHEREAS,given modem computing and software options, it is neither unusually difficult nor
burdensome for remote sellers to collect and remit sales taxes associated with sales into Alaska
taxing jurisdictions; 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
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have a physical presence in either the state of Alaska or within the [taxing jurisdiction], but do
have a taxable connection with the state of Alaska and[the taxing jurisdiction]; and
WHEREAS, the decision in South Dakota v. Wayfair provided guidance that included the
defensibility of a single-level statewide administration of remote sales tax collection and
remittance; and
WHEREAS, in order to implement a single-level statewide sales tax administration, it is the
intent of 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 under 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 [taxing jurisdiction] will be required to adopt certain uniform code provisions
for the collection and remittance of municipal sales tax applicable to sales made by remote seller;
and
WHEREAS, the uniform remote sales tax code will be presented to the [taxing jurisdiction's
governing body] for consideration once adopted by the Commission; and
WHEREAS,once 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, [authority of taxing jurisdiction to enter into intergovernmental agreements.
Many local governments in Alaska have charter provisions that read something like "(charter
section) provides that the municipality may exercise any of its powers or perform any of its
functions any may participate in the financing thereof, jointly or in cooperation, by agreement
with any one or more local governments, the State, or the United States, or any agency or
instrumentality of these governments."]
Now,THEREFORE,BE IT RESOLVED BY THE[GOVERNING BODY]:
Section 1.Authorization. The [Governing Body] authorizes the Manager/Mayor to
negotiate, execute, and submit all necessary documents to obtain and maintain membership in the
Alaska Remote Seller Sales Tax Commission.
Section 2.Representation. The [Governing Body] designates the Manager/Mayor/Finance
Director/STO as the [Taxing Jurisdiction's] representative on the Commission.
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Section 3. Scope of Agreement.The Alaska Intergovernmental Remote Seller Sales
Tax Agreement is included as Attachment A.
Section 4. Effective Date. This resolution shall be effective immediately after its
adoption.
Adopted this day of , 2019.
Authorized signatory
Attest:
Municipal Clerk
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