4.08.005
Definitions.
"Over the counter sales" means any sale
of a tour product as defined in this section, made directly to a customer
within the municipal boundary of the city of Skagway for tour products
originating in and returning to a point within the municipal boundary of
the city of Skagway.
"Pre-sold sales" means any sale of a
tour product as defined in this section, made by any agent outside of the
municipal boundary of the city of Skagway for tour products originating in
and returning to a point within the municipal boundary of the city of
Skagway.
"Retail sale" means any sale of real or
tangible personal property, including barter, credit, installment and
conditional sales, for any purpose other than resale in the regular course
of business. The delivery of property in the city by a seller whose
principal place of business is outside the city to a buyer or consumer, is
a retail sale made within the city if such retailer maintains any office,
distribution, or sales house, warehouse or any other place of business, or
solicits business or receives orders through any agent, salesman or other
type of representation within the city.
"Sale price," "price," and
"gross revenue," mean the consideration, whether money, credit,
rights or other property, expressed in term of money, paid, given or
delivered by a buyer to a seller all without any deduction on account of
the cost of property sold, the cost of materials used, labor costs,
interest, discount, delivery costs, taxes, or any other expenses
whatsoever paid or accrued, and without any deduction on account of
losses.
"Sales for resale" means the sale of
tangible personal property to a buyer whose principal business is the
resale of the property whether in the same or an altered form.
"Seller" includes every person making
sales to a buyer or consumer, renting property or performing services for
consideration.
"Services" includes all services of
every manner and description that are performed or furnished for
consideration whether in conjunction with the sale of goods or not, but
does not include services rendered by an employee to an employer.
"Tour operator" means any person or
business who sells or supplies a tour product as defined in this section.
"Tour products" means any activity, or
collection of activities, consisting of a transportation component by
land, or sea, for the purpose of sightseeing, entertainment or
interpretation, or a combination thereof. This includes but shall
not be limited to bus, van or automobile tours, kayak tours, bicycle
tours, horseback tours and hiking tours, river rafting or fishing and rail
tours.
"Transportation," for the purposes of
this section only, means the business of conveying passengers or goods to
or from location southside of the municipal boundary of the city of
Skagway to or from locations within the boundary of the city of Skagway,
or from point to point within the city of Skagway. (Ord. 96-17
(part), 1996; Ord. 89-27; Ord. 89-2
4.08.010
Levy of tax.
A sales tax is hereby assessed and levied on the
following sales, subject to the specific exemptions in Section 4.08.060:
A. All retail sales made within the city;
B. All services performed within the city;
C. All rents paid for the use of real and
personal property located within the city;
D. The retail price of all over the counter
tour sales, or tour product sales;
E. The net price received by the tour
operator who provides pre-sold tour sales discounted to third party agents
for sale outside of the municipal boundary of the city of Skagway.
The tax is to be collected and remitted by the tour operator, or their
agent. (Ord. 96-17 (part), 1996)
4.08.020
Rate of general sales tax.
A. Said tax is hereby levied in the
amount of four percent (4%) of the gross revenues derived from all taxable
transactions except those subject to the hotel room tax. The tax is
levied in accordance with the following schedule:
| Sales
Price |
|
Amount
of Tax |
|
|
|
|
|
| Under |
|
$0.24 |
|
None |
| $0.25 |
to |
0.37 |
|
$0.01 |
|
0.38 |
to |
0.62 |
|
0.02 |
| 0.63 |
to |
0.87 |
|
0.03 |
| 0.88 |
to |
1.12 |
|
0.04 |
| 1.13 |
to |
1.37 |
|
0.05 |
| 1.38 |
to |
1.62 |
|
0.06 |
| 1.63 |
and over continues on
same scale. |
B. The taxability of a sale of goods is determined by the point of
sale. The taxability of a service performed or rental made is
determined by the place where the service is performed or the rental
property is located. (Ord. 89-2)
4.08.030
Hotel room tax.
A. A retail sales tax upon hotel room
rentals is hereby assessed and levied in the amount of eight percent (8%) of
the gross revenues on all hotel and motel rents, and on all services
provided in connection therewith.
B. Hotel room rentals which continue for
thirty (30) or more consecutive days shall be subject to sales tax, instead
of hotel room tax, on or after the thirtieth consecutive day. Hotel
room rentals which are less than thirty (30) consecutive days shall be
subject to the hotel room tax even if the room or rooms were originally
taken with the intent to use or occupy for thirty (30) or more consecutive
days. (Ord. 91-27; Ord. 91-12)
4.08.040
Consideration other than cash.
Barters or exchanges are not exempt from sales
taxation. When sales, rentals or services are provided for other than
cash, the price shall be computed in dollars and cents on the reasonable
value of the sale, rental or service.
4.08.050
Sales not divisible to avoid tax.
The sales price of all items purchased or delivered
at the same time shall be added together and the tax levied on the aggregate
amount thereof. (Ord. 84-25)
4.08.060
Exemptions from tax.
The following transactions are exempt from the tax
herein levied:
1. All sales to a bona fide retailer when the
items are purchased by him for resale in the ordinary course of
business. In this connection, a retailer is one who regularly stocks
merchandise for resale, displays the same to the public and holds himself
out as regularly engaged in the business of selling such products either
during a regular season or throughout the year direct to the consumer;
2. Sales and the gross receipts derived
therefrom when the aggregate amount from a single transaction amounts to
less than twenty-five cents ($.25);
3. Grocery store sales to city residents who
are sixty-five (65) years of age, or older, and who display at the time of
purchase an identification card issued by the city for an annual fee of
twenty dollars ($20.00) and where such purchases are solely for the use of
the resident and spouse;
4. Casual and isolated sales made and
services performed which are not in the regular course of business;
5. Salaries and wages received by an
employee;
6. Dues or fees to clubs, labor unions or
fraternal organizations;
7. Remuneration for services and materials,
including caskets, used or furnished for funerals;
8. Sales of goods, services and rentals to a
buyer or made by a seller who is organized and administered solely by an
organization that has obtained an exemption certificate from both the
Internal Revenue Service pursuant to Internal Revenue Service Section
501(c)(3) and the city of Skagway, except that no exemption shall be allowed
where such organizations are also engaged in any business for profit or
savings, or competing with other persons or businesses engaged in the same
or similar business;
9. Proceeds derived from the transportation
of students to and from grade or high schools in motor or other vehicles;
10. Proceeds derived from carrier sales made
directly to consumers or users of, or advertisers in, newspapers or other
periodicals;
11. Sales of insurance and surety bonds;
12. Gross receipts or proceeds derived from medical
or dental services rendered, including hospital services and from the sale
of medicinal preparations when prescribed in writing by any licensed
practitioner;
13. Gross receipts or proceeds derived from sales
to the United States Government, the state of Alaska or any of its political
subdivisions, and the city of Skagway; or from sales by the United State
Government and the state;
14. Proceeds derived from sales or services which
the city is prohibited from taxing under state or federal law;
15. Sales of heating fuels for use in space
heating;
16. Proceeds from providing transportation by air,
water or land;
17. Proceeds of sales of rental property.
This exemption does not apply to commissions of real estate agents and
brokers, which remain subject to the tax on services;
18. All sales for consumption outside the city in
response to mail order requests originating outside city limits;
19. Contracts and subcontracts for new construction
and reconstruction services on projects and structures for industrial,
commercial, residential, and nonprofit purposes;
20. Wharfage charges and charges for freight
handling and cargo handling on docks. Warehouse storage and other
services or fees are taxable;
21. Purchases made with food stamp coupons; or food
purchases under the Federal Special Supplemental Food Program for Women,
Infants and Children (WIC);
22. Sales of building and construction materials
exceeding two thousand five hundred dollars ($2,500.00) for use on any one
construction project approved by a city building permit and paid for by any
one purchaser during any twelve (12) consecutive months period.
Purchaser may, at this discretion, pay at the time
of building permit approval all sales taxes due on purchases of two thousand
five hundred dollars ($2,500.00) of building and construction materials for
use on any one construction project. The purchaser will then be issued
a numbered sales tax exemption permit which will exempt purchaser from
paying sales tax on the purchase of materials on that project for the
year. The permit number must be shown to vendor by purchaser on all
purchases covered by this section and be recorded on all sales tickets at
time of purchase of materials.
For the purposes of this section, "building
and construction materials" are defined as any material which is
incorporated into the structure of a building or other improvement and is
also classified as real property for tax purposes by the city
assessor. (Ord. 96-17 (part), 1996; Ord. 95-3 §§ 1--3, 1995; Ord.
89-2; Ord. 88-26; Ord. 84-25)
4.08.070
Limitations of use of tax proceeds.
A. The proceeds of the tax hereby levied,
except the hotel room tax, shall be used for principal and interest on
General Obligation Bond Issues. At the beginning of each fiscal year,
a sum sufficient to pay the known or anticipated installments on general
obligation bonded indebtedness shall be set aside for this purpose.
Any remaining funds available after the sum set aside for general obligation
bond indebtedness shall be distributed as follows:
1. A percentage of
any remaining funds may be appropriated by the council for the purpose of
school funding.
2. A percentage of
any remaining funds, after allocation for repayment of general obligation
bonds and/or school funding, may be appropriated by the council for
equipment replacement reserves. This percentage is to be set annually
and included in the budget ordinance; and
3. A percentage of
any remaining funds may be allocated for special and capital projects.
4. Thereafter any
unused remainder may be allocated to the general fund or other funds for
services responding to visitor impact including, but not limited to
emergency services, clinic and museum. Such allocation shall not
exceed the equivalent of 1.5 mills.
B. The established sales tax fund shall be
treated as follows:
1. The interest
income generated by investment of the established sales tax fund account
during any fiscal year shall be transferred to the city's general fund
account at the beginning of the following fiscal year.
2. The principal of
the established sales tax fund may be appropriated by the council for the
purpose of planning, design and construction of capital improvements.
C. Proceeds of the eight percent (8%) hotel
room tax hereby levied shall be used, in such amounts as the voters by
referendum determine from time to time, to fund the promotion of tourism and
the provision of tourism-related facilities. The surplus, if any shall
be allocated to the tourism fund, which shall be maintained as a separate
fund. (Ord. 96-13 (part), 1996: Ord. 92-15)
4.08.080
Separate funds.
Proceeds of each category of tax levied hereunder
(the general sales tax and the hotel room tax) shall be maintained as
separate funds. (Ord. 96-13 (part): Ord. 84-25)
4.08.090
Duty to collect and make return.
A. The tax is hereby assessed and levied upon
the purchaser or consumer but it is the duty of the retailer or person
furnishing such rentals or services to collect the tax from the purchaser or
consumer and make a return thereof to the city clerk as herein stated.
Every person with an obligation to collect and remit taxes to the city under
this chapter, but who neglects, fails or refuses to do so, shall be liable
for and pay the tax himself.
B. The sellers or furnishers of the services
shall add the tax imposed under this chapter to the sales price or charge,
and when so added such tax shall constitute a debt from the purchaser or
consumer to the seller or furnisher until paid, and shall be recoverable at
law in the same manner as other debts.
C. In specific instances where the tenant is
occupying space in a government owned building or government owned land, it
is the tenant's obligation to pay the sales tax directly to the city, unless
the landlord is willing to voluntarily receive the tax payment and remit it
to the city.
D. All sellers and persons rendering sales
tax returns to the city shall be allowed to compensate themselves for costs
incurred in the collection, record keeping, remittance and accounting for
the tax imposed by taking the greater of ten dollars ($10.00) or half of one
percent (1%) of the tax due as a tax collection discount, to reduce the tax
to be remitted, for any quarterly return that is filed on a timely basis
with a remittance of all sales tax due. The deduction may not exceed
$100 for any quarterly reporting period, and may not be taken if any sales
tax, penalty or interest is due for any previous reporting period. (Ord.
87-8; Ord. 84-25)
4.08.100
Quarterly returns.
The city clerk shall provide appropriate
forms for use of taxpayers in making returns of the taxes payable under this
chapter. Every person, firm or corporation making such sales or
providing such rentals or services as are taxable hereunder shall furnish
the city clerk with a completed return containing such information as is
necessary to fill in or complete the forms supplied by the city clerk
including the total sales price collected during each quarter for which the
return is made and the amount of such sales and services as are exempt
hereunder and the tax due and payable for such quarter. Such returns
shall be made once each quarter for the sales made and rentals or services
furnished during the preceding quarter. When such sales, rentals or
services are made on credit, for the purpose of making a return and paying
the tax, such sales shall be considered made or rentals or services
furnished during the quarter in which payment is received unless the
taxpayer elects to make his returns on an accrual basis. (Ord. 84-25)
4.08.110
Penalty and interest.
In the event a return is not made or the tax is not
paid for any quarter within the following calendar month, a penalty of ten
percent (10%) of such tax as is unpaid shall be added to such tax for the
first month of delinquency or any fraction thereof, and an additional ten
percent (10%) shall be added for each additional month of delinquency or
fraction thereof, until a total penalty of thirty percent (30%) has
accrued. Interest at the rate of fifteen percent (15%) per year from
the date of delinquency until paid shall also accrue. Such penalty and
interest shall be collected in the same manner as the tax. (Ord. 86-2)
4.08.120
Collection enforcement.
In the event that the delinquent tax has not
been paid in full, including penalty and interest, by the end of the third
month of delinquency, the city clerk shall file suit in the appropriate
court of law for collection of the tax in full, including penalty, interest
and court costs. 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.
84-25)
4.08.130
Investigative procedure.
A. The city council shall from time to time
designate a person as city sales tax inspector, to make investigations and
inspections of those books and records of the persons, firms and
corporations (hereinafter termed "taxpayers") who are liable for
remittance of taxes under this chapter.
B. The sales tax inspector is hereby
authorized and empowered to make inspections from time to time of all the
relevant books and records pertaining to purchases and sales, including
services and rents, made or performed by persons who are liable for
remittance of the tax levied under this chapter. The sales tax
inspector is hereby granted the right to inspect all such books and records,
including the records of purchases made by retailers from wholesalers or
other retailers, the ledger accounts of customers of the taxpayers, and all
other books and records of the taxpayers which would in any way tend to
prove or reveal information concerning the tax liability of the taxpayers
under this chapter. It shall be the duty of every person engaged in
business in the city to allow the sales tax inspector to examine such books
and records during regular business hours at such times as the sales tax
inspector may require. If the keeper of such books and records denies
the sales tax inspector access to them, then the sales tax inspector shall
seek assistance of a court (e.g., inspection warrant, or deposition notice
accompanied by a subpoena to produce the records) to enable inspection of
the books and records.
C. If the sales tax inspector finds
discrepancies in favor of the city between the sales reported to the city
clerk and the sales which appear to have been made by any taxpayer, the city
clerk shall demand in writing that the taxpayer forthwith make an amended
return showing the correct amount of sales or rentals made and services
performed for each month for which any discrepancy appears, and to pay the
taxes due the city within five (5) days from receipt of the demand by the
city clerk. Unless a taxpayer upon who such demand is made makes such
returns and pays the taxes due the city within five (5) days from receipt of
demand from the city clerk, the clerk shall report the facts in full to the
council. The clerk and sales tax inspector shall keep confidential all
facts learned as a result of such investigations until such time as the same
are reported to the council.
D. In the event of a dispute between the
taxpayer and the city clerk as to the amount of tax due or as to the
applicability of any exemption listed in Section 4.08.060, the taxpayer may,
within five (5) days of the receipt of the demand made upon him for the
filing of amended returns and the payment of such taxes, demand a hearing
before the city council of his tax liability. In such event, the city
council shall notify the taxpayer of the time and place at which such
hearing will be held. The city council shall, after receiving a report
from the city clerk of the delinquent taxes and after affording the taxpayer
any opportunity for such hearing, take such action at law as is necessary to
collect any taxes which the city council finds to be delinquent, including
penalty, interest and court costs. (Ord. 84-25)
4.08.140
Failure to make return--Assessment.
A. Assessment by City. If any person
obligated to collect and remit taxes under this chapter 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 city manager shall make an
estimate of the taxable transactions during the taxable period and assess
the tax, plus penalties. The city manager shall give the taxpayer ten
(10) days' notice in writing concerning the proposed assessment and
requiring the taxpayer to appear before him with such books, records and
papers as he requires relating to the business for the taxable period.
The city manager may require the taxpayer or his employees or agents to give
testimony or to answer interrogatories under oath concerning any information
relevant to the assessment of the proper amount of taxes due the city for
that period or the failure to make any return thereon as provided in this
chapter. If any taxpayer fails to make any return or refuses to appear
and answer questions within the scope of an investigation relating to his
legal duties under this chapter, the city manager may make the assessment
based upon information available to him. The assessment shall be
presumed to be correct unless set aside by a court of law.
B. Protest by Taxpayer. If the taxpayer
protests his liability (or the amount thereof) on an assessment under
subsection A which has become final, he shall pay the tax under written
protest setting forth the basis for the protest. No action for a
refund may be maintained nor may a defense to non payment be maintained in a
civil action unless the amount in the dispute has been paid by the taxpayer
under written protest filed at or before the time of payment. (Ord.
84-25)
4.08.150
Selling or quitting business.
If any person 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 (15) 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 city clerk 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 the former
owner. (Ord. 84-25)
4.08.160
Jeopardy assessment.
If the city manager deems that the collection of
any tax required to be collected under this chapter may be jeopardized by
delay, he shall make an assessment of the 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 the current period, the city manager 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 city manager, 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. 84-25)
4.08.170
Bond for payment.
The city manager, if he finds it necessary or
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 city manager 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 city manager 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 city manager 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. 84-25)
4.08.180
Taxpayer records.
Every person with an obligation to collect and
remit taxes to the city under this chapter shall keep and preserve suitable
records of his business transactions as necessary to a determination of the
amount of tax due hereunder. Such records shall be preserved for at
least three (3) years following the end of the calendar year in which the
taxable transactions occurred. (Ord. 84-25)
4.08.190
Penalties for willful noncompliance or fraudulent action.
A. Any person subject to the provision of
this chapter who willfully fails or refuses to furnish any return required
in this chapter, or fails or refuses to furnish a supplemental return or
other data required by the city, 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 is guilty of a misdemeanor, and is subject to a
fine of five hundred dollars ($500.00), imprisonment for thirty (30) days,
or both.
B. In the case of a fraudulent return, where
willful intent to defraud the city of any tax due under this chapter has
been found by a court, the taxpayer shall be subject to a civil penalty of
fifty percent (50%) of the proper tax, in addition to any other civil or
criminal penalties imposed under this chapter. (Ord. 84-25)
4.08.195
Lien for tax, interest and penalty.
A. The tax, interest and penalty imposed
under this chapter in addition to the lien filing fee under subsection B of
this section shall constitute a lien in favor of the city upon assets,
including all real and personal property, of the seller who had the legal
obligation to collect and remit the sales tax which is delinquent. The
lien arises upon delinquency and continues until the liability for the
amount is satisfied. When recorded, a lien authorized under this
section has priority over other liens except those for property taxes and
special assessments.
B. Fees for the filing and releasing of liens
shall be:
(1) Filing of liens,
twenty-five dollars ($25.00) plus recorder's office filing fee;
(2) Release of liens,
twenty-five dollars ($25.00) plus recorder's office filing fee.
The above fees may be
changed by the city council by resolution from time to time to reflect the
administrative costs of processing such liens. (Ord. 89-2)
4.08.200
Period of limitation for collections.
The taxes imposed by this chapter shall be assessed
within three (3) 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 assess or proceedings filed in court for
the collection of such taxes begun without assessment, at any time within
six (6) years from December 31st of the year in which the taxes become due
and payable. (Ord. 84-25)
4.08.210
Refund of sales taxes.
An action may be brought by a taxpayer for recovery
of sales taxes originally paid under written protest; and the refund, if
applicable, shall include the amount in excess of that determined to be
owed, plus interest thereon at eight percent (8%) per year, plus refund of
any penalty assessed. A claim for sales tax refund filed after one (1)
year following the due date of the tax is forever barred. (Ord. 84-25) |
