HomeMy WebLinkAboutOrd1961-300
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CITY OF SEWARD. ALASKA
ORDINANCE NO. 300
AN ORDINANCE REPBALIm ORDINANCE Nd. 267. AND PROVIDING FOR THE LEVYING AND
ClOLl.BCTING OF A CONSUMBas SALES TAX.
THE CITY OF SEWARD. ALASKA. ORDAINS:
,
Section 1. That OrdinanCe No. 267 be. and the s8D18 hereby is. repealed. provided.
however. that any taxeli now due and paysble under said Ordinance No. 267 shall be ~ _ 9.-
paid and collected as tberein -provided. the V ~ 0~
Section 2. DEFINITIONS: Except where the context otherwise requires. ~ - ~~
definitions given in this section govern the construction of this ordinance. ~~ t; ~ ~
(a) "Sales tax". "Sales tax" means the tax impolled by this Ordinance. v \lO' \~
(b) "Person". ''Personll includes any individual. firm. copartnership. joint ~
venture. sssociation. social club, fraternal organization, corporation. 6~~t-:
estate, trust. business trust. receiver. assignee for the benefit of ~~.
creditors. trustee. trustee in bankruptcy. syndicate. the United States.
the State of Alaska. and sny city. borough. district. or other political
subdivision of the State of Alaska. or any other group or combination acting
as a unit.
(c) "Sale". IISale" means and includes:
(1) Any transfer of title or possession. exchanse. barter. lease. or
rental. conditional or otherwise. in any manner or by any means whatsoever.
of personal property for consideration.
(2) The producing. fabricating. processins. printing or imprinting of
personal property for a consideration for consumers who furnish either
directly or indirectly the materials used in the producing. fabricating.
processins. printing. or imprintins.
(3) The furnishing. preparing. or servins of food. meals. or drinks
for a consideration.
(4) A transaction whereby the possession of property is transferred but
the seller retains the title as security for the payment of the price.
(5) The furnishins of natural or srtificial g8S. electricity. ice.
steam. or any public service or public utility. including water.
(6) The furnishing of transportation for hire of persons or property
by common carriers. including motor transportation, taxi cab companies
and all other means of transportation for hire.
(7) The furnishing of services by telephone companies to subscribers
or users. including transmission of local messages. This shall include all
services andr.ental charges having any connection with transmission
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.~._..' "-'--~"..'-'. .
of local mesaages.
(8) The furo1ahing of board and/or room in a private home. and retala
of nonC01lDllrci.l property. provided lIIOre th.n one such furnishing or reatal of
a priv.te home or of noncommerci.l property is undertaken at the aame time by
the aame peraon.
(9) All retals of cOllll\l8rcial buildinga. The term "cOlllDllrdal buUding"
shall include. but is not limited to. any building leased or rented for
officea. apartmenta. rooming houae. hotel. varehouae. and af.milar rentala.
(10) Advertiaiaa of all kinda. including any and all devices uaed for
edvertiaiag purpo..s end the servicing of ac1vertisiag devices includiag the
printing and aubscriptions to newapapers and magazines.
(11) The _ncliag. furn18hiag. or diatributiag of goods or aervice.
throush marble machines. juke boxes. merchaDdiae vencliag mechinea or 8lIIUae.
mant devicea of any kiDCi.
(12) The tranafer of ticketa or edmiasione to placea of amusement. to
athletic entert.iamenta. recreational events. or .ccoTdiag the privilege of
having access to or the use of 8IIlU....nt. entertainment. athletic or
recreational f.eilitie.. includiag free or complimentary paase. or tickets.
admis.iona. 01' membershipa. All auch fl'ee or complimentary paa.es. tickets.
.dmisaion. or membershipa ara hereby declared to have a value equivalent
to the regular ..1. price or v.lue of said tickets. p....s. admiasiona or
memberships.
(13) The tranafer of peraonal property mede for the purpose of
developing and improvlag real estate even though such real estate 1. intended
for resale aa real property; tranafer of per.onal property. including
matel'ials. auppliea and equipment made to contr.ctora who use the .... in
the performance of any contract; transfer of tangible person.l property
to persona who .re primarily eagaged in aelling their aervice..
(14) The furnishing of .ervicea for remuneration. provided remuneration
for servicea ahell not be conatrued to include ealariea or wasea received
by an employee from an employer. but aball include the gro.. remunerstion
for furniahins labor and material a for accompliabing a apacific reault.
(d) "RetaU aal.... A "retaU .ale" or "sale at retsU" me_. . ..le for
any purpoae other tban re.ale In the regular course of buaineas; the deUver)
in thia city of tansible peraonal property by an owner or former owner
thereof or by . facto.. or agent of auch owner. former owner or &ctor. if
the deUvery 18 to . COD8Ul11er or person for redelivery to a consUlller.
pursuant to a retail aale made by a retailar not ensaged in business in this
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city, is a retail sale in this city by the person making the delivery. A
sale of tangible personal property to a contractor or subcontractor for use
in the performance of contracts with the United States or the State of Alaska
for the construction of illlprovements on or to real property in this city is a
retail sale and the gross receipts from such aale or the sale. price of
property eo sold shall be ineluded in the measure of taxes impo.ed.
(e) "Sales price". ''Sales price" means the total alllOunt for which personal
property or services, or both, are sold or furnbhea. valued in IIIOney.
whether paid in IIIOney or otherwise, without any deduction on account of any
of the following: The cost of property sold; the cost of materials used.
labor or service cost. interest char... 10..... (the co.t of transportation
of the property prior to its purchase). or any other expenses. The total
alllOunt for which the property is sold includes all of the following: Any
services that are a part of the sale; any amount for which credit 18 given
to the purchaser by the seller. ''Sales price" does not include any of the
following: Cash discounts allowed and taken on sale.. "Sales price" shall
also include the consideration. whether lIIOaey. credit, rights or other
property. expre.sed in tel'lll8 of money. received for performing services.
(f) ''Gross receipt.". "Cro.. receipts" _an the total amount of the sale
price of the retaU .ales of retaUers, valued in money. whether received in
money or otherwise, without sny deduction for the co.t of the property sold
or services furni.hed, the cost of the material. used, labor or service co.t,
interest paid, losses. cost of transportation of the property prior to its
sale to the purchaser. or any other expense. and include. any services that
are s part of the sale and all receipts, cash. credits and property of any
kind and any amount for which credit is allowed by the seller to the
purchaser.
(8) "Seller". "SeUer" includes every penon engased in the bu.ines. of
.elling personal property or performing services for remuneration when the
gross receipt a of .uch sale or furnisbing are taxable under this ordinsnce.
(b) "In thi. city". "In this city" .an. within the exterior limits of
tbe City of Seward ad include. aU territory within these limits owned by
or ceded to tbe United States of America or the State of Alaska.
Sect:f.on 3. UVY AND COLLBCTIOH or TAX. POI' the privilege of making retail sale.
tax is hereby imposed upon retail sales and the furnishing of .ervices within the
City of Seward for the priYilese of making tba same. equal to two per cent. (21'.)
of the sa1.. price when such .ales price equal. twenty-five cents (2Se) or more.
(a) The CoUect1oe Scale of the Sal.. tax shan be as follows:
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Amount of Sales
!!.!
.24 & under
.25 to .50
.51 to 1.24
1.25 to 1.50
1.51 to 2.24
2.25 to 2.50
2.51 to 3.24
3.25 to 3.50
3.51 to 4.24
4.25 to 4.50
4.51 to 5.00
Over $5.00
except as
NONE
.01
.02
.03
.04
.05
.06
.07
.08
.09
.10
Straight r&
provided in Sec. 5
(1)
Section 4.
The tax on retail sales,
Ai:K)tJt.'T OF 't'A.~'.
which shall be payable by the retailer, shall be two per cent. (2%) of the gross
receipts computed in dollars derived from all taxable retail sales within the City
of Seward; f!nd the tax on services rendered, which shall be payable by the person
furnishins services, shall be two per cent. (27.) of the gross receipts or
remuneration derived from taxable services furnished within the City of Seward.
Section 5.
EXCEPTIONS AND EXEMPTIONS.
In addition to the exceptions and
exemptions set forth by definition. there are exempted from this sales tax the
gross receipts from the sale of personal property or the furnishing of services
which are exempted by the statutes or Constitution of the State of Alaska, or the
statutes or Constitution of the United States. The following are also exempted:
(a) Gross receipts derived from the sale of personal property or furnishing
of services to or by churches, except where such organizations may be engaged
in business for profit or savings and thereby competing with other persons
engaged in the same or similar business.
(b) Gross receipts derived from trsnsportation to and from grade or high
schools in motor or other vehicles.
(c) Gross receipts derived from the sale of food on public school cafeterias
or lunch rooma operated primarily for teachers and pupils, and not operated
primarily for the public, and not operated for profit.
(d) Gross receipts derived from carrier sales made directly to consumers
or users of newspapers or any other periodicals.
(e) Gross receipts derived from servicing, freezing, storing. handling.
or wharfing of fish.
(f) Gross receipts derived from legal. medical. or dental services rendered,
and from the sale of medicinsl preparations when prescribed in writing by
any licensed practitioner; hospital services aod funeral charges.
(g) Retail aales or services amounting to less than One Hundred Dollars
($100.00) in any cslendar year.
(h) Casual and isolated sales not made in the regular course of business.
I~
Sales of insu' ce and bonds of guaranty and f' lity.
(i)
(j)
(k)
Dues or fees to clubs. labor unions. or fraternal organizations.
Gross receipts derived from the sale of real property exeept the gross
receipts earned as commissions by an agent making such sale.
(1) Gross receipts in excess of One Thousand Dollars ($1.000.00) derived
from the sale of n~w automobiles and gross receipt_ in exce4s of TwO Hundred
Fifty Dollars ($2sb.oO) derived from the sale of used automobiles.
(m) Gross receipts derived from the transmission of long distance telephone
or telegtaphic messages.
(n) Tutition to private kindergarten. tuition for music lessons. or other
educational functions.
(0) Auditing services. as distinguished from bookkeeping services.
(p) Subscriptions to magazines and newspapers.
Section 6. PROVIDING FOR RULES AND REGULATIONS. The City Manager. subject to the
approval of the City Council. shall have the power to adopt suitable rules and
regulations providing for the application and interpretation of this ordinance and
for providing methods and forms for reporting and collecting the tax herein
prescribed.
Section 7. REIMBURSEMENT. The tax hereby imposed shall be collected by the re-
tailer or furnisher of seJ'Vices from the consumer or recipient of services insofar
as it can be done.
Section 8. UNLAWFUL ADVERTISING. It is unlawful for any ret.iler or furnisher of
services to advertise or bold out or state to the public or to any customer.
directly or indirectly. that the tax or any part thereof will be assumed or ab-
sorbed by the retailer or furnisher of services. or that it will not be added to
the selling price of the property sold or services rendered, or that if added it
or any part thereof will be refunded.
Section 9. TAX SEPARATE FROM COMMCDITY PRICES. The City Manager. subject to the
approval of the City Council. may by regulation provide that the amount collected
by the retailer or furnisher of servicas from the consumer or recipient of services
a reimbursement of the tax be displayed separately frmm the list prices. the price
advertised in the premises. the lIl8X'ked rr1-. or other price on the sales check or
other prouf of sale.
Section 10. APPLICATION FOR A PERMIT. Every person desiring to engage ill or <<In-
duct business as a seller or furnisher of services within the city shall file with
the City Clerk of the city an application for a permit. Every application for a
permit shall be made upon a form prescribed by the City Manager. approved by the
City Council. 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 City Manager may require. The
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8:pplication sball be signed by the owner if a natural person; in case of an
aaaociation or partnership, by a partner or member; in the case of a corporation,
by an executive officer or some person specifically authorized by the corporation
to 81gn tbe application, to which shall be attached the written evidence of his
authority.
Section 11.
ISSUANCE AND DISPLAY or PERMIT. Af~er compliance with Section 10
by the applieantj) ~i'-'
37, Security for Tax,/the City Clerk shall grant and issue to each
and Section
applicant a separate permit for each place of business within the City. A permit
is not assignable and is valid only for the person in whose name it is issued and
for the transaction of busines8 at the place designated therein. It shall at aU
times be conspicuously displayed at the place for which issued.
Section 12. RBNB'~ or PERMIT. A seller whose permit has been pr.viously sua-
pended or revoked sball pay the City Clerk a fee of One Dollar ($1.00) for the
renewal or issuance of . permit.
SectlQD 13. REVOCATION OF PERMIT. Whenever any person faUs to comply with any
provision of this ordinance relating to the sales tax or any rule or reBulation
hereafter established by the City Manager with the approval of the City Council,
tbe City Manager 11I81, upon bearing, after giving the person ten (10) days notice
in writ1118 specifying tbe time and place of hearina and requiring him to show
cause why his permit or permits sbould not be revoked, may revoke or suspend any
one or more of the permits beld by the person. The City Manager shall give to the
person written notice of the suspension or revocation of any of his permits. The
notices herein required may be served personally or by I\I8U. The City Clerk
shall not issue a naw permit after the revocation of a permit unless tbe Clerk is
satisfied that the former holder of the permit will comply with the provisions of
this ordinance and the regulations adopted thereunder. The City Clerk sbsll not
issue a new permit after a permit bas been revoked for the third time within any
two year period except upon payment by the former holder of the permit of a fee of
Twenty-five Dollars ($25.00). When giving notice of a second revocation the
City Manager shall also notify the person that in the event his permit is again
revoked within two years frO\ll the date of the first revocation, he sball pay 8
fee of Twenty-five Dollars ($25.00) for a new permit after such third revocation.
In the event of additional revocations the two year period shsll cOlllll8nce to run
from the date of the first revocation of the permit for the issuance of which
the fee of Twenty-five Dollars ($25.00) was paid.
Section 14.
UNLAWFUL ACTS. A person who engages in business as a seller in this
City without a permit or permits or after 8 permit has been suspended, and each
officer of any corporation which so engases in business, is guilty of a
misdemeaDor.
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Section 15. PRESUMPTION OF TAXABILITY. For the purpose of the proper administration
of this ordinance and to prevent evasion of the sales tax. it shall be presumed
that all gross receipts are subject to the tax until the contrary is established.
The burden of proving that a sale iJ not a sale at retail is upon the person who
makes the sale.
Section 16. DUE DATil. The taxes i!nposed by the ordinance are due and payable to
the City of Seward monthly. on or h~fore the 15th day of the month immediately
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following the calendst month in which . sale has been made.
Section i 7 .
I
RETURN.
On or before the 15th day of the month. a return for the pre-
ceding month shall be filed with the City Clerk in such form as the City Manager
may prescribe. A return shall be filed by every seller and shall be signed by the
person required to file the return or by his duly authorized agent. The return
shall show the gross receipts of the seller during the preceding month and the
amount of taxes for the period covered by the return and such other information as
the City Manager deems necessary for the proper administration of this ordinance.
The person required to file the return shall deliver the return. together with a
remittance of the amount of the tax due. to the office of the City Clerk.
Section 18. DISCOUNT. If the sales tax return is filed and payment of the tax
is made on or before the fifteenth (15th) day of the month for the preceding
month. a discount of three per cent
(3%) of the total sales tax due the City for
the preceding month. may be taken by the seller.
Section 19. RETURN PERIODS. The City Manager. if he deems it necessary or ad-
visable. msy allow returns for calendar quarterly periods rather than monthly
periods. Discount for prompt payment shall not be allowed under any condition to
taxpayers filing quarterly returns.
Section 20. EXTENSION OF TIME. The City Manager for good cause msy extend for not
to exceed one month the time for making any return or paying any amount required to
be paid under this ordinance. The extension may be granted at any tiue provided
a request therefor is filed with the City Manager within or prior to the period
for which the exteniion may be grsnted. Any person to whom an extension is
granted. shall pay. in addition to the tax. interest at the rate of one per cent
(l%) per month. or fraction thereof.
Section 21. DEFICIENCY DETERMINATION. If the City Manager is not satisfied with
the return or returns of the tax or the amount of tax required to be paid to the
City by any person. he msy cause a computation and a determination of the amount
required to be paid upon the basis of the facts contsined in the return or returns.
or upon the basis of any information within his possession or that may come into
his possession. One or more deficiency determinations may be made of the amount
due for one or for more than one period. When a business is discontinued. a
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determination may be made at any time thereafter as to liability arising out of
that business.
Section 22.
iNTEREST ~ The amount of the determination, exclusive of penalties,
shsll bear interest at ttie tate of one per cent. (1%) per month or fraction there-
. I
of, from the last day of the mouth fOliowing the period for which the amount or
any portion thereof should have been returned until the date of payment.
Section 23.
OFFSETS.
In making a determination the City Manager may offset
overpayments for a period or periods, together with interest on the overpayments,
against underpayments for another period or periods, against penalties, and against
the interest on the underpayments. The interest on underpayments and overpayments
shall be computed in accordance with this ordinance.
Section 24.
TEN PER CENT PENALIY.
If any part of the deficiency for which a
deficiency determination is made is due to negligence or intentional disregard of
this ordinance or rules or regulations established thereunder, a penalty of ten
per cent. (10'1.) of the amount of the determinatikn shall be added thereto.
Section 25. NOTICE OF A DETERMINATION.
The City Manager shall give to the
seller written notic~ of his determination. The notice may be served personally
certified tJ~;l'~
or bY)"8il.
Section 26.
FAILURE TO FILE RETURN - DETERMINATION. If any person fails to make
a return, the City Manager shall make an estimate of the amount of tax due for the
period for which no return has been made. The estimate shall be based upon any
information which is in the City Manager's possession or may come to his possession.
A penalty equal to 107. of the determination shall be added thereto.
Section 27.
OFFSETS. In making a determination the City Manager may offset
overpayments for a period or periods, together with interest on the overpayments,
against underpayments for another period or periods, against penalties. and against
the interest on the underpayments. The interest on underpayments and overpayments
shall be computed in the manner set forth in this ordinance.
Section 28. INTEREST. The amount of the determination, exclusive of penalties,
shall bear interest at the rate of . one per cent. (It) per month, or fraction
thereof. from the last day of the month following the period for which the amount
or any portion thereof should have been returned until the date of payment.
Section 29. NOTICE OF DETERMINATION.
Promptly after making his determination,
the City Manager shall give to the person written notice of the determination and
certifiedp" .f<<,:/
penalty. the notice to be served personally or bY}mail.
Sac.tlcn 30.
INTEREST AND PENALIY.
If the amount specified in the determination
is not paid within ten days after service of notice thereof upon the person against
whom the determination is made. the amount becomes final at the expiration of the
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ten days, unless a petition for redetermination is filed within the ten days, and
the delinquency penalty and the interest provided by this ordinance shall attach
to the amount of the tax.
Section 31. PETITION FOR REDETERMINATION. Any person against whom a determina-
tion is made or any person directly interested may petition for a redetermination
within ten days after service upon the person of notice thereof. If a petition
for redetermination is not filed within the ten day period, the determination
becomes final at the ~piration of the period.
Section 32.
ORAL HEARING. If a petition for redetermination is filed within the
ten day period, the City Council shall reconsider the determination, and if the
person has so requested in his petition, shall grant the person sn otal hearing
and shall give him ten days notice of the ~ime and place of the hearing. The City
Council may continue the hearing from time to time as may be necessary.
Section 33. DECREASE OR INCUASE OF THE IlmRMINATtoN. The City Council may
, I
decrease or increase the amount of the determination before it becomes final, but
the amount may be increased only if a claim for the increase is asserted by the
City Manager at or before t6e hearing.
Section 34. FINALITY OATE OF ORDER OR DECISION. The order or decision of the
City Council upon a petition for redetermination becomes final thirty days after
service upon the petitioner of notice thereof.
Section 35. DUE DATE OF DETERMINATION; PENALTY. All determinations made by the
City Manager or the City Council are due and payable at the time they become final.
If they are not paid when due and payable, a penalty of ten per cent. (10?) of the
amount of the determination, exclusive of interest and penalties, shall be added
thereto.
Section 36. INTEREST AND PENALTIES. Any person who fails to pay any tax to the
City or any amount of tax required to be collected and paid to the City within the
time required shall pay a penalty of ten per cent. (10?) of the tax or amount of
the tax, in addition to the tax or amount of tax, plus interest at the rate of
one per cent. (11.) per month, or fraction thereof, from the last day of the month
following the period for which the 8l'DOunt or any portion thereof became due and
payable to the City until the date of payment.
Section 37. SECURITY FOR TAX. The City Manager, whenever he deems it necessary to
insure compliance with this ordinsnce, may require any person subject thereto, to
place with the City such security as the City Manager may determine. The amount
of the security shall be fixed by the City Manager, but the security shall not be
greater than twice the estimated average liability for each monthly period.
Determination of the average monthly liability shall be made in such manner as the
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City Manager deems prope: The City Manager may. on beha: .of the City. sell tbe
security at public auction if it becomes necessary so to do in order to recover any
tax or any amount re4!uired to be collected. interest. or penalty too. Notice of the
sale may be served upon tbe person wbo placed the security personally or by
certified mail. Upon any sale. any surplus above the amounts due sball be returned ..
to the person who placed the security.
Section 38. COURT ACTION. At any time within three (3) years after any tax or
any amount of tax required to be collected becomes due and payable and at any time
within three (3) years after the delinquency of any tax or any amount of tax re-
quired to be collected the City may bring an action in the Courts of this State or
of any other state or of the United States in the name of the City to collect the
amount delinquent together with penalties and interest.
Section 39. PENALTIES. Any retailer. or any other person. who fails or refuses
to furnish any return required to be made or refuses to furnish a supplemental
return or other data required by this ordinance or any regulation thereunder shall
be deemed guilty of a misdemeanor. and upon conviction thereof shall be punished
by a fine of not more than Three Hundred Dollars ($300.00) or by imprisonment for
not more than thirty (30) days or by both such fine end imprisonment in the
discretion of the Court. Any person required to make. render. sign or verify any
report who makes sny false or fraudulent return. with intent to defeat or evade the
determination of an amount due required by this ordinance to be made. is guilty of
a misdemeanor and upon conviction thereof shsll be punished by s fine of not more
than Three Hundred Dollars ($300.00) or by imprisonment for not more than thirty
(30) days or by both such fine and imprisonment in the discretion of the court.
Any other violation of this ordinance by any person shall be deemed a misdemeanor.
and upon conviction thereof such person shall be punished by a fine of not more
than Three Hundred Dollars ($300.00) or by imprisonment for not more than thirty
(30) days or by both such fine and imprisonment in the discretion of the court.
SecUon 40. DESIGNATING A DEPOSITORY AND PROVIDING FOR DISBURSEMENT.
<a> All monies accumulated under the terms of this Ordinance shall be
deposited by the City Clerk with the First National Bank of Anchorage. Seward
Branch. in an account to be titled City of Seward. General Fund. but all
records shall show the amount of Sales Tax funds separately. and no part of
these funds may be diverted to any other use than herein stipulated except
that the City Council may direct the investment of any portion thereof in
approved securities such as bank certificates of deposit or U.S. Government
Bonds, pending its immediate need for those stipulated purposes.
(b) Expenditures from this fund may be made at the discretion of the City
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Council, by Resolution or Ordinance or motion, but on y for the purpose of
operating, maintaining, improving or increasing public education facilities.
public health, and sanitation.
Section 41.
REMEDIES, CUMULATIVE. The remedies of the City provided for in this
ordinance are cumulative, and no action taken constitutes an election by the City
to pursue any remedy to the exclusion of any other remedy for which provision is
made.
Section 42.
PARTIAL INVALIDITY. If any section, subsection, sentence. clause or
phrase of this Ordinance is held to be invalid, the decision shall not affect the
validity or meaning of the remaining portions of this Ordinance. The City Council
declares that it would have passed this Ordinance, and each section, subsection,
sentence, clause, phrase thereof, irrespective of the fact that anyone or more
sections, subsections, sentences, clauses, or phrases be declared invalid.
First Reading - January 6, 1961
Second Reading - January 20, 1961
PASSED AND APPROVED by the CODllllOn Council of the City of Seward, Alaska,
this
kd
day of
'Unary .
, 1961.
~<;YW~;~
Mayor
Attest:
Lb 4h< <-~_ CC '7{~>~76-
City Clerk
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