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HomeMy WebLinkAboutOrd1982-507 . . . - - e 2/22/82 FBA/rsa Introduced By: City Attorney Introduction Date: February 22, 1982 Public Hearing and Enactment: March 8, 1982 CITY OF SEWARD, ALASKA ORDINANCE NO. 507 AN ORDINANCE OF THE CITY OF SEWARD, ALASKA, ADOPTING SALES TAX. WHEREAS, Seward General Hospital provides residents of Seward and surrounding areas with vital medical care which cannot otherwise be obtained within the City of Seward, and WHEREAS, continual operation of Seward General Hospital is in the public interest and necessary for the health and safety of the community, and l-JHEREAS, the Ci ty of Seward has in the past appropriated funds to prevent Seward General Hospital from discontinuing operation and to prevent the resulting loss of health care to the community, and WHEREAS, the magnitude of such appropriations is difficult to predict and yet it has a serious impact on the entire budget for the City of Seward and detract from other necessary community services provided by the City, and WHEREAS, nonresidents of the City of Seward benefit directly from the operation of Seward General Hospital while only property owners within the City of Seward have borne the taxation burden for such funds, and WHEREAS, a sales tax would most fairly to all consumers in Seward, including nonresidents and yet direct beneficiaries Seward General Hospital, and spread the tax burden those who might be of the operation of WHEREAS, the Kenai peninsula Borough currently assesses and collects a Borough-wide sales tax and could operate as collecting agency for the City of Seward with minimal additional expense to the City, and NHEREAS, revenues from a sales tax would be ava ilable as part of the City's general revenues to defray any necessary funding to Seward General Hospital while any excess ":auld be available for other purposes including those which benefit nonresidents as well as property owners; -1- CITY OF SEWARD DRDINANCE NO. 507 . . . . . NOW, THEREFORE, THE CITY OF SEWARD ORDAINS AS FOLLOWS: Section 1. The follO\'i'ing Article IV is added to Chapter 19(a) of the Seward City Code: ~ 19A.40.0l0 ~ 19A.40.020 ~ 19A.40.030 ~ 19A.40.040 ~ 19A.40.0S0 ~ 19A.40.060 ~ 19A.40.070 ~ 19A.40.080 ~ 19A.40.090 ~ 19A.40.l00 ~ 19A.40.110 ~ 19A.40.l20 19A.40..0l0. Definitions. Administration. Secrecy of Information. Exchange of Information with Tax Officials. Personnel, Supplies, Equipment, and Other Expenses. Imposition of Sales Tax. Exclusion and Exemptions. Computation -- Maximum Tax. Computation of Tax. Schedule of Tax -- Computation of Coin- Operated Machine Revenue. Absorption of Tax Prohibited. Refund of Taxes. Definitions. In this chapter, unless the context specifically indicates otherwise, the meaning of terms used in this ordinance shall be as follows: Business. Any activi ty engaged in by any person, or caused to be engaged in by him, with the object of gain, benefit or advantage, either direct or indirect. Cost Price. The actual cost to a purchaser of an item or article of tangible personal property computed in the same manner as the gross proceeds in subsection G of this section. Dealer means: 1. Every person in the City who makes any retail sale or sales of tangible personal property or services or who leases or rents any tang ible personal property or real property, the receipts from which are taxed by this chapter. 2. Every person engaged in the business of making any retail sales or rentals of tang ible personal property for use, storage or consumption in this City who either: a) maintains, occupies or uses, permanently or temporarily, directly or indirectly, or through a subsidiary or agent, by whatever name called, an office, place of distribution, sales or sample room or place, warehouse or storage place or other place of business in this City; or -2- CITY OF SEWARD ORDINANCE NO. 507 . . .' b) has any representative, agent, salesman, canvasser or solicitor operating in this City under the authority of any person or his subsidiary for the purpose of selling, delivering, or taking any orders for any tangible personal property. 3. Every person who uses, consumes, stores or distributes tang ible personal property, whether purchased or self- produced by such person, to be used or consumed in this City. 4. Every person who as a representative, agent or solicitor for an out-of-city principal, solicits, receives, and accepts orders from persons in this City for future delivery and whose principal refuses to register under th is ch apter. Distribution. The transfer or delivery of tangible personal property for use, consumption, or storage by the distributee, and the use, consumption, or storage of tang ible 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. . Employee. A person receiving consideration for services rendered an employer, and who is entitled to worker's 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. Employer. A person receiving services from an employee. . Gross Proceeds. The total amount for which tangible personal property or services are sold or for which tangible personal property or real property is rented, valued in money, whether paid in money or otherwise, and includes any amount for which credit is given to purchaser, consumer, or lessee by the dealer, without any deduct ion 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), tram:.portation charges, losses or any other expenses whatsoever. 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 credi t 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 -3- CITY OF SEWARD ORDINANCE NO. 507 . . . billed to the purchaser separately from the selling price of 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 art icles. Import and Il'lported. Apply to tangible personal property imported into this City from other areas in the state or from other states as well as from foreign countries, and "export" and "exported" apply to tangible personal property exported from this Ci ty to other areas wi thin the state or other states as well as to foreign countries. In this City or In the City. Wi thin the municipal boundary limits of the City of Seward, Alaska. Lease or Rental. The leasing or renting of tangible personal property and real property or the possession or use thereof by the .lessee for a consideration, \vithout transfer of the title to the property. City Manager. designee. The City Manager of the City of Seward or his . Person. Any individual, firm, co-partnership, cooperative, nonprofit mel'lbership 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 number. Retailer. Every person engaged ln retail sales of tangible personal taxable services as defined in this the business property and chapter. of making providing Retail Sale or Sale at Retail. A sale to a consumer or to any person for any purpose in the form of tangible personal property, other than for resale, or services taxable under this chapter, and includes any such transaction as the City 11anager, upon investigation, finds to be in lieu of a sale. Sales for resale must be made in strict compliance with this chapter. Any person making a sale for resale which is not in accordance with this chapter shall himself be liable for payment of the tax. "Retail sale" or "sale at retail" includes but is not limited to: . 1. Cash or in kind consideration 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, -4- CITY OF SEWARD 'ORDINANCE NO. 507 . . . . . camping grounds, club or any other place in which rooms, lodg ing, 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 owners or contractors shall pay the tax. 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 City Hanager may require vendors or sellers to such persons to collect the tax imposed by this chapter on the cost price of the tangible personal property sold to such pers_ons and may refuse to issue certificates of registration to such persons. 3. The rendition of any taxable service. 4. The purchase of supplies and equipment used or consumed in the fabricating of an article of tangible personal property or in the performance of a taxable service. Sale. For consideration, any transfer of title or possesslon, or both, exchange, barter, lease or rental, cond i tional or otherwise, in any manner or by any means whatsoever, of tangible personal property, any lease or rental of real property, and any rendition of a taxable service, 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 tang ible personal property consumed on the premises of the person furnishing, preparing or serving such tangible personal property. A transaction v;hereby the possession of property is transferred, but the seller retains title as security for the payment of the cost price is a sale. Storage. Any keeping or retention of tangible personal property for use, consumption or distribution in this City, or for any purpose other than the sale at retail in the regular course of business. Tang ible Personal Property. Personal property wh ich 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. -5- CITY OF SEWARD 'ORDINANCE NO. 507 . . . . . Taxable Sale. Every sale of tangible personal property and every lease or rental of tangible personal or real property. Taxable Service. Any service whatsoever, whether professional, personal, pursuant to contract, subcontract, or otherwise, excluding only services rendered by an employee to an employer. 19A.40.020. Administration. The Kenai sales and use 29.33.030 and Ordinances. peninsula Borough shall assess and collect the taxes levied by this chapter in accordance with AS Chapter 5.16 of the Kenai peninsula Borough Code of 19A.40.030. Secrecy of Information. Except in accordance with proper judicial order, and except incident to necessary communication with City officials or attorneys, or as provided by law, it is unlawful for the City Manager or ~ny agent, auditor, or other officer or employee to divulge or make known in any manner the amount of sales, the amount of taxes 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 therein, or to prohibit the inspection by the legal representative of this City of the report or return of any taxpayer who applies 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, penalty, or interest imposed by this act. 19A.40.040. Exchange of Information with Tax Officials. Notwithstanding the provisions of Section 19A.40.030, the City nanager 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 theretoi provided that said jurisdictions grant similar privileges to this City and that the information is to be used only for tax purposes. 19A.40.050. Expenses. Personnel, Supplies, Equipment, and Other The purchase expenses City Manager may employ all necessary personnel, supplies, purchase or rent equipment and incur other necessary for the administration of this chapter. -6- CITY OF SEWARD .' ORDHiANCE NO. 507 . . . . . 19A.40.060. Imposition of Sales Tax. 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 tangible personal property or real property, or of performing taxable services, the same to be collected in the amount of one percent (l%) of the gross proceeds of each taxable sale. In cases of disputes as to what constitutes a taxable sale or a taxable service, the decision of the City Manager shall be final and binding subject to the taxpayer's appeal to the Superior Court pursuant to Appellate Rule 45. 19A.40.070. Exclusion and Exemptions. "Retail sale," "sale at retail" or "sale" does not include: 1. Casual, isolated sales of property and services or the rental of personal or real property not in the regular course of the business of the seller. 2. Hospital services and medical services performed by licensed medical doctors, dentists, osteopaths, optometrists and chiropractors, and retail sales of medicinal preparations, drugs or appliances under a written prescription from one of the foregoing. 3. Retail sales, services and rentals to religious and charitable organizations in the conduct of their regular religious and charitable functions and activities as defined by the revenue laws of the United States. 4. Retail sales, services and schools, in the conduct of activities. by nonprof it funct ions and rentals to or their regular 5. Subscriptions to newspapers and periodicals. 6. Retail sales, services and rentals to the United States, the State of Alaska, or any instrumentality or political subdivision of either. 7. Dues or fees to clubs, labor unions, and fraternal organizations. 8. Sales of animal food, seed, plants and fertilizers to farmers using such commodities to produce goods for sale. 9. Retail sales real estate section. by a this of real property. Services performed broker or agent are not exempt under -7- CITY OF SEWARD ORDINANCE NO. 507 '-', . . . e . 10. Retail sales or rents which the City is prohibited from taxing by the Constitution or laws of the United States or the State of Alaska. 11. Services 08.44.010, persons. performed by morticians licensed under AS and retail sales of funeral supplies by such 12. Rece ipts of wi thin the events. nonprof i t schools and student organizations schools for extra-curricular activities or 13. Sales and services by banking institutions and savings and loan institutions in the ordinary course of business of banking and savings and loan operations. 19A.40.080. Computation -- Maximum Tax. The tax shall be applied only to the first $500.00 of each separate sale, rent or service transaction. The payment of rent, whether for-real or personal property, in excess of $500.00 and for more than one month shall be treated as several separate transactions covering the rental for one month each. A transaction involving payment for services or personal property to be rendered or delivered over a period of more than one month for a consideration in excess of $500.00 shall be treated as several separate transactions occurring one each month over the period of time that the service or property is rendered or delivered. 19A.40.090. Computation of Tax. The amount of the tax charges shall be determined schedule: to be added to in accordance the sales wi th the price or following Taxable Scale Tax Under $.50 .50 through 1. 00 1.00 through 1.49 1.50 through 1.99 2.00 through 2.49 2.50 through 2.99 3.00 thrcugh 3.49 3.50 through 3.99 4.00 and over None .01 .01 .02 .02 .03 .03 .04 continue on same scale -8- CITY OF SEWARD ORDINANCE NO. 507 . . . . - . 19A. 40 .100. Schedule of Tax -- Computation of Coin-Opera ted Hachine Revenue. The tax to be added to the sale price, charge or rental shall be one percent (1%) of the sale price, charge or rental rounded off to the nearest cent by eliminating any fraction of one-half cent or less and by increasing any fraction over one- half cent to the next higher cent. Each seller shall be furnished the schedule of tax payable on each taxable amount from one cent to $100.00. Anyone sale of items separately priced shall be taxed upon the aggregate amount. The revenue from a coin-operated nachine shall be treated in gross on a monthly basis, without reference to the amount paid or placed on a particular transaction. 19A.40.110. Absorption of Tax prohibited. NO person shall advertise or hold out to manner, directly or indirectly, that he will part of the sales or use tax, or that he purchaser, consumer, or lessee of the payment of the tax. the public, in any absorb all or any will relieve the of all or any part 19A.40.120. Refund of Taxes. If a taxpayer pays sales and use taxes under protest, he may bring suit in the Superior Court against the City for recovery of the taxes within six months of denial of a timely filed claim for refund. If judgment for recovery is given against the City, the City shall refund the amount of the taxes to the taxpayer. If a remi ttance by a taxpayer through error or otherwise exceeds the amount due under this Chapter, and the City or the Kenai Peninsula Borough on audit of the account in question, is satisfied that this is the case, the City shall refund the excess to the taxpayer. A claim for refund filed after three years from December 31st of the year in which the taxes became due and payable is forever barred. Section 2. This ordinance shall not become effective unless and until it is referred to the public at a special election and approved by a najori ty of the votes cast in accordance with AS 29 .53.420. If approved such by referendum this ordinance shall take effect on the first day of the month following the certification of results of the election by the City Clerk. this ENACTED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, 8th day of March , 1982. yor -9- CITY OF SEWARD ORDlfANCE NO. 507 e -- . . . AYES: NOES: ABSENT: ABSTAIN: BURGESS, MEEHAN, SORIANO AND SWARTZ NONE CAMPBELL AND O'BRIEN CRIPPS ATTEST: APPROVED AS TO FORM: HUGHES, THORSNESS, GANTZ, POWELL & BRUNDIN, Attorneys for the City of Seward, Alaska (City Seal) ~4 (]/~ Fred B. Arvidson, Attorney /~. L.. - , ~,- tim.l.... S./ Murphy . . -10-