Loading...
HomeMy WebLinkAboutORDINANCE 0197-1971CITY OF KENAI - ORDINANCE NO. 197-71 PROVIDING FOR ENACTMENT OF A CONSUMER'S (RETAIL) SALES TAX BY INCORPORATING APPLICABLE PROVISIONS OF KENAI PENINSULA BOROUGH CODE INTO KENAI CODE, 1963 AS AMENDED AND PROVIDING SUCH OTHER AUTHOR- IZATION FOR ADMINISTRATION AND MANAGEMENT OF SUCH AN ENACTMENT AS IS REASONABLY REQUIRED AND DECLARING AN EMERGENCY. WHEREAS, at a special election on May 25, 1971, in Kenai, Alaska, the voters of the City of Kenai very responsibly authorized enactment of a one percent (1%) retail sales tax to be dedicated to provide rec~ired funding for what has been commonly called City of Kenai 1971 Capital Improvement Program; and WHEREAS, best administration of the authorized tax can be accomplished by utilizing the statutory framework presently provided by the Code of the Kenai Peninsula Borough. BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA: Section 1. That the Code of the City of Kenai, Alaska, is hereby amended t~ add to Chapter 7, Article 4, the following provisions: SALES TAX LEVY Section 7-25. There is hereby levied a consumers' sales tax of one percent (1%) on all retail sales, on all rents, and on all services made or rendered within the City limits within the City of Kenai measured by the gross sales price of the seller. O:~NERSHIP OF MONIES Section 7-26. The one percent (1%) consumers' sales tax levied herein and all sales taxes collected are City of Kenai monies, and the seller is at all time accountable to the City of Kenai for such monies. DEDICATION Section 7-27. All revenues of the consumers' sales are dedicated to retire the general obligation bonds authorized at that certain special election held in the City of Kenai on the 25th day of May, 1971. It is the intent of this dedication that the proceeds shall be used exclusively for the purposes of repaying, retiring or otherwise discharging the City of the obligations of the bonded debt or obligation assumed pursuant to the authorization of the special election. RULING AND REGULATIONS Section 7-28. a. The Finance Director of the City of Kenai may take any action necessary or ap~ropriate to the implementation of this ordinance by promulgating regulations which may include the adoption of forms. Such regulations, or any procedures, adopted by the Finance Director are effective at the time indicated by him, but are subject to revision or repeal by the City Council, at the next meeting following their effective date or at any time that the City Council acts thereon. b. Should a taxpayer under this Code or a seller obliged tO collect the tax be in doubt as to the applications of the provisions to an actual situa~n facing the taxpayer, or about to face the tax- payer, the taxpayar may apply for an informal ruling on the issue. Ruling having a general application, may at the discretion of the Finance Director, be promulgated as regulations. iK')ROUGH ~ALhS TAX ADOPTED BY REFERENCE ' Section 7-29. Incorporated by reference in this Code as though · ~ desig~mted code provision was set forth verbatim hcrein , are statutes ' .~onsisting of ordinances and/or code provisions of the Kenai Peninsula Borough, or such identified portions thereof, identified by catchlines, and the code section reference numbers as follows: CODE SECTION NUMBER CATCIILINE Sec. 25.10.010 Sec. 25.10.015 (Omit subparagraph (1) Sec. 25,10.020 Sec. 25.10.025 Sec. 25.10.030 Sec. 25.10.035 Sec. 25.10.050 Sec, 25.10,055 Sec. 25.10.065 Sec. 25.10.070 Sec. 25.10.075 Sec. 25.10.080 Sec. 25.10.085 Sec. 25.10.086 Sec. 25.10.090 Sec. 25.10,095 Obligation to Pay Taxes Custody, Reporting, and Remittance Exemptions Maximum Tax Definitions Installment Sales Registration of Sellers as Tax Collectors Seller Not to Assume Tax Protest of Tax Registration of Buyers Entitled to Exemption Confidential Material Duty to Keep Books Omissions and Civil Penalties Lien Extensions Criminal Penalties TAX SCHEDULE Section 7-30. (a) The tax to be added to the sale price, charge, or rental shall be in accordance with the following schedule: Price Tax ~,gg--- $1.49 ~ Fo~ sales above $1.49, the tax shall be determined by applying one per- cent (1%) to the sale price, charge, or rental rounded off to the nearest cent by eliminating any fraction less than one-half cent and by increasing any fraction of one-half cent or over to the next highest cent. Each seller shall be furnished the schedule of tax payable on each taxable amount fron dollars $0.01 to $100.00. ~y one sale of items separately priced shall be taxed upon the aggregate amount. (b) The revenue from a coin-operated machine shall be treated in gross on a monthly basis, without reference to the amount paid or played on a particular transaction. Section 2. An emergency is hereby declared an the rules governing intro~Z~-i~, reading, passage, and approval of this Ordinance are hereby suspended, and this Ordinance shall become effective the 1st day of July, 1971. First reading 2nd day,of June 1971..~ Emergency declared /~ day of ~zx.~ _ , 1971. PASSED /~ day of-~--~ _'~7~f~~. ATTEST: CITY OF KENAI ~T~-F. S1EINBECK,' Mayor NOTE: Attached hereto for ready reference is a copy of the Kenai Peninsula Borough Code Provisions incorporated by reference. BOROUGI{ SALES TAX ADOPTED BY REFE;~EIiCE . Section 7-29. Incorporated by reference in this Code as though each designated statute was set forth verbatim herein, are statutes consisting of ordinances and/or code provisions of the Kenai Peninsula Borough, or such identified portions, thereof, identified by catchlines, customary abbreviations, and the code sections reference numbers as follows: CODE SECTION NUMBER CATCHLI NE Sec. 25.10.010 Sec. 25.10.015 (Omit subparagraph (1) Sec. 25.10.020 Sec. 25.10.025 Sec. 25.10.030 Sec. 25.10.035 Sec. 25.10.050 Sec. 25.10.055 Sec. 25.10.060 Sec. 25.10.065 Sec. 25.10.070 Sec. 25.10.075 Sec. 25.10.080 see. 25.10.085 Sec. 25.10.090 Sec. 25.10.095 Obligation to Pay Tax. Custody, Reporting and Remittance Exemptions Maxim~mTax Definitions Installment Sales Registration of Sellers as Tax Col~ctors Seller Not ~mAssume Tax Tax Schedule Protest of Tax Registration of Buyers Entitled to Exemption Confidential Material Duty to Keep Books Omissions and Civil Penalties Extensions Criminal Penalties Section 2. An emergency is hereby declared and the rules governing the th-~6~c~ion, reading and passage and approval of this ordinance are hereby suspended, and this ordinance shall be effective immediately upon its passage and approval. First reading ~./ day of June 1971. Emergency declared~_._day of~.~, 1971. PASSED ~__day of ~j_ , 1971. CITY OF KENAI JOHN F. sTEINBECK, Mayor NOTE: Attached hereto for ready reference and information purposes is a photo=opy of tho codes incorporated by reference. June 3, 1971 TO: Finance Director FROM: CITY ATTORNEY SUBJECT: Considerations for sales tax ordinance. Enclosed is a proposed tax schedule, which would substituted £or the tax schedule utilized for thc Kc~ai Peninsula Borough. It would seem to me that a joint Borough-City im£ormational schedule would be best for all concerned. It would seem that it should be e~sential that it be in the hands of the mer- chants on the e££ective date o£ the Ordinance. To make certain that things went as smoothly as possible, I would suggest th~ following: a. Settle on a joint Borough-City tax schedule. Send it out by direct mail -- with a £ollow-up either by telephone call to the head o£ the business, or by a personal contact -- that personal contact could be rather time consuming, but it might be well worth the effort. ,Kenai Peninsula Borough Box 850 $OLDOTNA ~m.~ a~a, Sales Tax Ordinance or 8~e. 25.10~110. Obligation to Pay Tax. T~ obligation of the tax is upon the buyer. The seller gall collect the tax at the time o~ sale. Collection is en- ~oreeabis by time seller as the certified tax collector of the Boring, h: provided, however, that this shall not limit the l~tllt~ ~ the buyer to the Borough. 8cC, 25.10,015. Custody, Reporting and Remittance. ! .Z.~/F~ due the Borough collected by a seller here ~-{'/~ und~ shall b~ paid a{~ the expiratio~ of each quarter--of ' ~ ~b e~tlend~r ye~tr. Eve~ ~ller liable for the collection ~ the ~ s~ll file ~th the Borough u~n forms fu~ish- ed by ~ m r~u~ ~fng fo~h: (A) Orozs sales; (B) ~e non.~ble po~ion s~ara~ly s~ting the amount ~ sales ~enue a~bu~ble to each e~s of ~emption; (C) T~ eollec~d; (D) ~h other f~o~tion as may ~ requi~d by re~Istfon, ~n. ~mpl~ r~u~, ~gether with remit~ce in full for the amount ~ the ~ due, must be transmt~ed to the ~r~gh on or ~fore the last day of the month succeed- ~ ~ ~d ~ each q~r. (3) If a ~u~ is filed wlth the ~xe5 remit~d within the gms all~, the ~ller may re.in thee ~rcent of · e ~ ~ll~d ~ cover his costs ~ administration of t~ ~ (4) Any .p~son who ffl~ or should bays filed a sales ~x ~ for the prior qua~r shall file a ~m, even ~ no ~ my be due. This r~um shall sh~ why no ~x ~ due and, ff the business is soM, the name of the ~r~n ~ whom it was ~Id. (5) If any ~iI~ ~lls, leases or othe~ise disposes of h~ ~s~ess, he shall make a final sales ~x retch within 15 days ~r the d~ o~ saleI and the purchaser, sueces- ~r or asel~ shall withhold a sufficient portion of the ~se money ~ safely cov~ the amount ~ such sales ~, ~Itfes and tanrest as may be due and unpaid ~ t~ ~rough until such time as {he former owner has pr~uc~ a red,pt from the Borough showin~ that all ~x ~If~tfons impos~ by this chapter have been paid; and fu~her provided, If any purchaser of a business fails to ~hold from the purchase money as herein provided for he s~ ~ .~onally liable for the peFme.t ~I the ~xes, pt. nalties and iaterest aceruiro~ and unpaid to the Borough on account of the operstion of the business by any former owner, owners or assigns. Sec. 25.10.020. Exemption. ] he following classes of retail sales, services and rent- als are exempt: (l) Casu:d, 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 i~rformed by licensed medical doctors, dentist~, osteopaths, optome. trists, and chiropractors; and retail uales of ~edtetnal pre- parations, drugs or appliances under a written preserip. tion from one of the foregoir~. (3) Retail sales, services and rentals to religious and charitable organizations in the conduct of their regular religious and charitable functions and activities ms de~ined by the revenue laws of the Unite~ States. (4) Retail sales of food in coiTage an~ school cafeterias whtch a*-e operated primarily for tesehers or studenta and ~hich are not operated for profit. (5) Subscriptions to newspapers and periodicals. (6; Retail sales, services and rentals to the United Stat~s, the State of Alaska, or any instrumentality or po* lJtical subdivision of either. (7) Dues or fees to clubs, l~bor unions, and fmtorusl organizations. (8) Sales of animal ~ood', seed, plants, and fertilisera to [arrears using such commodities to prodllce goods sale. (9) Retail sales of real property. ~rvlees performed by a real estate broker or agent are m~t exel~pt undmx* tht~ section. (I0) Retail sales or rent which the Borough is hibited from taxing by the constitution or laws M the United Stat~s or the State of Alaslr~, (11) Services peHormed by morticians ltcensal AS 05.44.010; and retail e~les o~ ~uneral supplies by suoh persons. ~ec. 25.10.025. Masimum Tax. The ta~ ~hall bo npplted only to the ~irst ~00.00 of each separate ~ale, rent or service transection. The pay- meat of rent, whether for real or personal property, in excess of $§00.00 and for more than one month shall be treated as several separate transactions covering the rental for one month e~teh. A transaction lnvolvln~ payment ~o~ services or persona! property to -be rendered or delivered over a period of more than m:e month for a consideration in excess of $500.00 s',all be treated as several separate truns:~ctions occurrin~ one each month over the period o~ time that the service or pr~erty is rendered'er delivered. 8ee. 2~.!0.0~0. Definitions. Wt2en.not clearly otherwise indicated by the context, tho following wolxis and phrases, as used in this Chapter, have the _~owtng mesnhq~a: (I) "~4t].*' or "Retail Sale" shall include: (A) Every sale o~ services; (B) Every rental of real or personal property; ((~) Every sale of the use or play of a coin-operated machine; and (D) Every sale of tangible personal property, re* gardless of quantity or price, whether sold by coin.operated machine or otherwise, except: I. Sales to a wholesale or retail dealer in the property sold, for the purpose of re* mile by him** 2. Sale of personal property as raw mater- 1~I to a person engaged in manufacturing for sale, when the property becomes an ingredient or component part o~ the man- ubetured product or a eontolner thereof or fa consumed in the manufacturing pro* (2) "Sale" Includes every sale or exchange o~ services, use er title in property. Installment, credit and conditional ~as ate included in the term. The point of delivery ia the place e~ ~le. ($) "~les Price" means eoreideratton paid,by the .~.er fa to,ms of money and, in the ease of a sale involv- Ing sm exe~__~ge of property, the fair market value of the pro~y exchanged, including delivery or installation ee~ta, taxes, er any other expenses whatsoever, measured by the ~toss sales of the seller. (4) "Buyer" includes persons who are purchasers of ps,seal property, rental space or services. (5) aSeller" includes .persons who are vendors of pro- perry, l~rSorm furnishing services, the lessors of rental space or goods, and all persons making sales. (?) "Coin-Operated Machine" means a slot machine, marble machine, luke box, merchandise vending machine, laundry, dtT cleaning and any other service-dispensing n~tehtme or amusement device of any kind which requires the insertion o~ a coin to make it operative. (?) 'Services" inoludes all services of every manner and description which ate performed or furolshed for compensation, except services rendered to an employer by · n employee, including but not limited to: (&) Professional services; (.B) ~qetviees in which a product or sale of property may be Involved, tneludin~ personal property made to order; (C) Utilities and utility services not constituting a sale of personal property, including sewer, water, eleetriesl end telephone services and rel~air; (D) The aais of transportation services; (J~) Services rendered for compensation by any person who furnishes any such services in the course o~ his ,business or occupation; (F) Services wherein labor and materials are used to accomplish a ~pecified result; (O) And-any other ~r~'ices including advertising, maintenance, recreation, amusement a n d er~tamen services. (8) "Person'~ includes individuals and every person recognized in law and every group of persons who act as It Reit, (9) "C~atrman" or "Borough" means the C~airman of the Kenai Peninsula Borough or his designee. Sec. 25.10.035. Installment 8ales. When a sale is made on an installment basis, the sales tax shall be collected from the down payment, or if none, from the first installment, or, if the in~tallment or down payment is less than the tax, then from aa many install- ments aa is necessary to pay the tax. ~ ' ~ee. ZO. lu.oab, ltuung.~ uno ltegtfletlons. "~The chairman may take any action neces~l~ Or appropr'l~ to the implementation of this Clha~ b~ pro- mulgattns ~,e~ulations, which may tnclu~he ~doptton of forms. Sueh'"r,~.gulattons or any pr~p~lures adopted blt the chairman are L~ettve at theft/ribs indicated b~' him, b~L~ion o~p/repeal by the Borough A~~ t ~m g following their effective d~ time tha/~e A~nbly acts thereon. (2) Should a ts~ya er under ~ Chapter or a seller ~ be in doubt ~s,.to the application t~ the chairman foia'~d'l tnformal Sec. 25.10.050. Registration of Sellers ss Ta- Colleetorm: Certificate of Regiatrstfon- (I) Ail sellers shall ~ile with the Borough an appltea* tton for a Certificate of Registration, or* a form prescrib. ed by the Borough, not more th~n ten (10) da~'s after the effective date of this Chapter, the date of commencing business, or the opening of an additional place of business. (2) Upon receipt of a properly executed application, the chairman will issue, without charge to the seller, & Certificate of Registration, stating the address of the place of business to which it is applicable and authorizing the seller to collect the tax. The Certificate mu~t be prom- inently displayed at the place of business named therein. A seller who has no regular place of business shall attach such Certificate to bis stand, truck, or other merchandis- ing device. (3) The Certificate of Registration is non-assiamaeole and non-tranl~ferable ami must *be surrendered to the chairman by the seller to whom it was issued upon his ceasing to do business at the location named therein. If the business is continued at the same location but there is a change in its form of organization such as from a single proprietorship to a partnership or s corps, arise.. the admission or withdrawal of a partner or any other change, the seller making such change shall surrender his old Certificate to the chairman for cancellation. The suc- cessor seller is required to file a new application for a Certificate of Registration. Upon receipt of such applica- tion, properly executed, a new Certificate will be issued to such successor seller. (4)When there is a change of location for the seller's ~[IT ...... place of business, a now Certificate of Registration is re- quired showing the new address. (5) Before issuing a Certificate of Registration, the chairman may require the applicant to post a bond, fur- nish · statement of net worth, or furnish additional seeur- lty to insure the full and prompt payment of taxes to be collected under such certificate when in his judgment it is in the interest of the Borough to do so. (6) A seller who obtains or should obtain a Certificate of Registration in accordance with this chapter hereby consent~ to the inspection of his Alaska Business License Tax returns in order to facilitate the accomplishment of the provisions and objectives of this chapter. See. 25.10.055. Seller Not to Assume Tzx. A seller shall not advertise or hold out or state to the public or to any ~ouyer, directly or indirectly, that the tax or ~ny part thereof imposed by this Chapter will be as- sumed or absorbed Coy the seller or that it will not ibc add- ed to the ~ales price or that it will be refunded or assum- ed, in whole or in pa~t. The seller shall, whenever feasible, sepsrntoly state the tax to the buyer on each taxable trsnaxetto~. When not feasible to state separately, the felltr shall prominently display a stg~ provided by the Borough indicating the imposition of the . --.-.~..._-~i; ..... - ......................... I L4~%- ~ ................ . ....... ~, ~ ~11 be dete~ntned hy a~ ~ plyin~ ~ ~ercent to t]M~sale l~Hce, charge or rental J ~n~y eliminating an7 fract'on ~ less than one~ ,by ~ltc. renstng any f~action of r one-hal~ cent orov~lr tothe next hi.est cent. Eac"- feller sh~ll he furnts]~ the schedule of ~ payable on each taxable amo]~ from dollars $0.01 to ~.00. ~ priced shall be t~d upon the ·=o..t. __ lf~c-e. 211.I0.065. Protest of Tax. (I) A seller shall determine Jo"the first instance *;~.~her & retail sale is exempt under this Cliapter, t!o;v- ever, if r. seller incorrectly determines that a sale i~ ox.. mmpt, then the seller is liable to the Borough for the tax, Just as if he had collected it, (2) In the event that the seller determines that a trans- action is not exempt, but the buyer believes the transaction to .be exempt, then the seller will furnish to the buyer a form of Certificate of Protest, supplied by the Borough, which shall be filled out by the buyer and delivered to the seller with thc disputed tax. The ~erttftcate shall show the respective names and addresses of the seller and the buyer, the nature of the claim of exemption and such other information as may be prescribed by the Boruogh. (3) The seller shall remit to the Borough all Certifi- cates of Protest delivered to him as promptly as possible, but in any event no Inter than 30 days after delivery of a Certificate to hl.,], together with any additional tr~forma- tfon which the seller belteve~ to be pertinent to the deter- ruination of the issue. (4) The chairman will rule on each protest and send to the buyer a notice that his claim has ~oeen allowed or disallowed, within 30 days of receipt of the Certificate by the Borough. If the claim },aa l~n allowed, a refund will be remitted with the notice. (5) In the event that the claim is disallowed, the buy- er may, ~/i!hin 30 days, request that the claim be referred to the borough attorney for review and then to the chair- man for recor~ideration. The decision of the chairman on reconsideration shall be rendered in writing and shall be final, subject to Judicial review where applicable. Sec. 25.10.070. Registration of Buyers Entitled to Exemption. (~) The Borough may require by regulation that the seller collect the tax on sales from any claes of buyer allegedly exempt under Section 10o020 (3) or 10.0~0 (8), unless the buyer ia registered under parai~raph (2) of this Section. An unreidstered buyer may file a Certificate of Protest under Section (2) The Borough may by regulation require that any claes of buyer exempt under Section 10.02~ (3) or (5) re. inter with the Borough as aa exempted buyer to avoid payment of tax. Registration shall be upon forms provided by the Borough and shall Include a ~brief state- ment of the reason for exemption and such other informa- tion as the Borough may require. Upon regtstrstion, the buyer shall be issued a Certificate or Certificates of Ex* eruption ~vhich the buyer must show seller to ·void initial payment of the sales tax. Sec. 25.10.075 .Confidential MstedsL (I) Returns filed with the Borough for the purpose of complying with the terms of this Chapter and all data ob- tained from such returns are confidential, and such turns and data obtained therefrom shall be kept from inspection By all ,private persons except as neceesaz.~r to investigate and prosecute violations of the Chapter. (2) Nothing contained in this Section shall be con° strued to prohibit the delivery to a ,person, or his duly authorized representative, of a copy of any return or re- port filed by him, nor to prohibit thc puMtcatto~ of Sta- tistics so classified as to prevent the ldcn~Ifieation of par- ticular buyers or sellers, nor to prohibit the furnishing of information on a reciprocal basis to other agencies of'the State or the United States concerned with the enforcement of tax laws. Sec. 25.10.080. Duty to Keep (I) Every. seller engaged in activity subject to this Chapter shall keep and ~,t-eserve suitable records of all sales made by him and such other books or accounts may be necessary to determine the amount of tax which he is obliged to collect. Every seller shall preserve suit- ~ble records of sales for a period of four years from the date of the return reporting such sales, and shall preserve for a period of four years all invoices of goods and mer- chandise purchased fer resale, and all such other books, invoices, and records as may be necessary to accurately determine the amount of taxes which the seller was obllg. ed to collect under th!s Chapter. (2) For the purpose of ascertaining the correctness of a return, er for the purpose of determining the amount of t&x ~ollected or which should trove been collected by any feller, the chairm~n may hold investigations and heari~.gs concerning uny matters covered by th~.~' CJ~pter and may examine any relevant books, paper:, records, or memor- anda of any seller and may require the attendance of any seller or lmyer, or auy officer or employee of a Miler or buyer at the hearing. Se~ 25.10~}85. Omissions und Civil Penalties. (1) Failure to obtain Certificate. A seller who is obliged to obtain a Certificate of Registration but fails to do so within the time prescribed herein is subject to civil penalty of five times the amount of any tax due. A seller who, after notice, continues to conduct business without obtaining s Certiflceto ts subject to a penalty of ten times the amount of any tax due. (2) Failure to file a return. A seller who falls to file a return as required by this Chspter or who falls to remit taxes collected by him, or whtch should have been collected by him, is subject to n penalty of five percent of the taxes collected, or which should have been collected, per month to a maximum of the htgher of 25% or $300.00. The filing of an incomplete return ts the equivalent of filing no re- (tl) Falsification. Falsification or knowing misrepre- sentation of any record required hereunder subjects the person tasking such falsification or misrepresentation to a pemtlty of 100 times any tax due or lost because of such l,dsiflcatton or misrepresentation to u maximum of (4) Failure to separately state the tax. A seller who fails to separately state the tax due In any sales trans- action shall be subject to a penalty equal to the amount collected as a (5) Inspection, The failure of a seller to allow the in- ~pection at reasonable times of records required to be kept by this Chapter subjects the seller to a penalty of three times ~ny deficiency found or estimated to have occurred by the borough in the tax accounting of the seller. (6) Esthnation. In the event that the Borough is un- able to ascertain the tax due to be remitted by a seller b.v reason of the failure of the seller to keep accurate allow inspection, failure to file a return, or falsification of records, th~ Borough may make an estimate of the tax due b~sed on sn~,, information available to it. Notice of the estimate of taxes due lshull be furnished the seller and shall become final fo_- tho purposes of determinin~ lin- bl~!ty of seller to the Borough in 30 days unless the seller *nrlier files an ascurate return, supported By sati~actory records, indicatin~ a lesser liability. (?) Loss of Records. A seller shall immediately notify tho lh~onSh of an}. fL-e, theft, or other casualty which would prevsnt his complying with this Chapter. Such cas. ualty constitutes a defense to any penalty provtded in this Chapter, but does not excuse the seller from liability for taxes due. Accidental 10ss of funds or record~ ts not defense hereunder. (8) Maintenance of Buffs. Nothing in this lqeetion shall prevent the Borough iron; filing and maintaining an action to collect any ta~es collet~ed or which should have been collected in addition to any penalty assessed. 8es. 2S.10.086. Lien. The tax, penalty and interest imposed by this chapter shall constitute a lien irt favor of the Borough upon all the seller's property within the Borough. The lien 8rf~es upon deliquency and continues until the Ifabtitty for the amount is satisfied or the p:.operty is sold at foreclosure sale. The lien is not valid as against a mortgagee, pledgee, purchaser or judgment creditor until notice of the lien is filed irt the eff;~,_· ,_.f the Recorder in which the property is located in the manner provided for Federal tax liens in AS 43.10.090 - 43.10.150. AS 13.10.090 - 43.10.150 apply to the tax liens arising under this ordinance. These sec- tions of state law are herewith adopted by reference the same as if set forth in full herein. -~ ~ Sec. 23.10.087. Accelerated Returns. ~ See. 25.10.090. Extensions. For good cause shown, the Borough may ~'~n$ tensions on any time limitation described in this ChApter. Any application for an extension must be filed before the date specified as the original time limitation. ~. 2~.I0.095. Criminal Penalties. (I) Each of the following act~, when intentional, con. stitutes a misdemeanor and is punishable by imprisonment for up to 30 days and by a fire of up to $300.00, Jn 8ddlo tion to any civil penalty assessed: (A) Failure to obtain a Certificate of lle~atr~tion; (B) Failure to file a return or failure to remit taxes due; (C) Falsification or misrepresentation of any re- cord filed with the Borough hereunder or re- quired to be kept hereby, if used to mislesd Borough tax authorities. (2) Each act hereunder constitutes a separate offense and each day constitutes a seperate offense for eontinu. lng crimes or omission or concealment. One hu~i~l.~s after the Legfslatu~ge-M-~h'~State o~ ~:~ ~, the Borough~al~~ and no lo~r / ~ Assembly Borough Clerk (1SD) Clerk Starts Total Asseelor (21F) Asele~n~ Assessor (19F) Deputy Assessor (18F) Cadeetral Draftsman Clerk Typist II! CLerk ?ypAst II (TS) $C,BDULE OF SALARY ~uXy 1, 1971 BUDGE?ED 13,464 20,.652 Clerk Typist IX (TD) 7,452 Clerk Brans (7B)(1/2 ~lnance) 3~452 Total G~00,194 Chairman Chairman Secretary l! (llB) Custodian (10S) Becpto?ele 'Opz ~6C) Total ~Lvil Defense C. D. Director (2OB) Secretary (10B) ?oral 22,536 19,452 18,072 13,968 8,328 6,924 $ 30,264 9,300 8,640 .. 6r672 54, sTG 18,072 8 ~.§40 ee Director (21C) Me~han~c IV Hath. Techn~ei&n XV(I?B) 0feohan~c Il! (1GD) HeohanLo Ill (16C) ~eohentc lZ (1SC) · a~ter Carp. ZZX (16C) ~aineer Ca~p. ZZZ Total REVXSED SALARY SCHEDULE INCREASE 14,640 G 1,176 7,824 63~ G ADD 24,516 G 1,980 21,156 1,704 19,656 1,584 15,192 1,224 9,072 744 7,548 624 8,124 672 3~774 312 ~,209,038 ~' 8,844~ 41 $ 1,853 30,264 $ -- 10,128 828 9,408 768 7 r 272 600 57 ~072 ~ 297 ~ 0,041 19,656 6 1,584 9~.408 768 29r 064 ~,' 2,3S2~ 20,184 ~ 21,948 ~ 1,764 16,188 17,592 1,404 14,496 15,756 1,260 14,496 15,756 1,260 13,960 15,192 1,224 12,972 14,112 1,140 13,968 15,192 1,224 13.~ 968 1S~192 1~22_4 12o 240 130,74, o F lo, 5,0o .51 $ 2,403 ~ ~4 G!0,774 · &GE 2 SALARY ADD BUDGETED SCHEDULE ZNCREASg BENEFITS ?OTAL Finance Finance Dtrector(24C) Revenue Collecto~ (16B) Borough Acoountant (15F) Sales Tax Clerk (11F) AccountAng Clerk I2! (10C) Accounting Clerk Z (SD) 25,164 13,464 Z4,496 10,788 8,964 6,028 Clerk Steno (78)(1/2 Aseee$tn~)3,462 Clerk 2 (68)(Part TLne) 3r2,/6 TotaX .~ ,8,7; 582 Lc~al Attorney (25E) ~ 29,172 Secretary Total $ 39, 564 21,612 19,452 13,968 8f964, 63~996 ~OTAL ALL UNFUNDSD BALANCE 27,372 $ 2,209 $ $ 14,640 1,176 15,756 1,260 11,736 948 9,768 804 8,748 720 3,774 312 3r504 288 95,298 ~ 7,-7 ~6 $ 103 ~ 7~819 31,776 $ 2,604 11~316 924 43,092 $ 3,528 3,609 23,628 $ 2,016 2i,156 1,704 15,192 1,224 9~768 804 ~9r744 ~ 5f748 ~556c512 ,~ 42~696 ~ 930. S43,626 ~30~311 ~13,315 IG~A! PBI;ZNSUI~ BOROUGH SALARY SCHEDULE i O'dLY 1971 STEP STEP STEP S~EP STEP ,A, B C D E 5 6 7 8 9 10 11 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 ...... 584 -- 584 606 629 606 629 652 677 652 677 702 729 702 729 756 784 756 784 814 844 814 844 876 909 876 909 943 978 942 978 :L,015 1,053 1,015 1,053 1,092 1,133 1,092 1,133 1,176 1,220 1,176 1,220 1,266 1,313 1,266 1,313 1,362 1,413 1,362 1,413 1,466 1,521 1,466 1,521 1,579 1,638 1,579 1,638 1,(~99 1,763 1,699 1,763 1,829 1,898 1,829 1,898 1,969 2,043 1,969 2,043 2,119 2,199 2,119 2,199 2,281 2,367 2,281 2,367 2,455 2,547 2,367 2,455 2,547 2,648 2,455 2,547 2,648 2,742 2,547 2,648 2,742 -- 6O6 652 702 756 814 876 943 1,015 1,092 1,176 1,266 1,362 1,466 1,579 1,699 1,B29 1,969 2,119 2,281 2,455 2,648 2,742 629 677 729 784 844 909 978 1,053 1,133 1,220 1,313 1,413 1,, 521 1,638 1,763 1,898 2,043 2,199 2,367 2,S47 2,742 .June IS, 197I TO: Acting City Clerk, Si{ARON STERLING FRObl: City Attorney RE: Amendment No. 1 to Ordinance 197-71 Attached is the Amendment No. 1 to Ordinance 197-71. This should be prepared as follows: i. Prepare information sets of the amendment and the page for the Council. 2. For the Peninsula Borough Ordinance, I am enclosing copies (if you have time, the alteration of those copies as indicated ili the buff colored copies attached to the original of the Ordinance might be further assistance to the Council). 3. ~hen the original Ordinance is considered, the motion should be made as indicated on the prepared Amendment -- as indicated, it can be passed by4&~l~t-6~&gvote. 4. After the Amendment is adopted, then any further amend- ments on the Ordinance can be made -- by ~~i~vote. 5. On final passage, of course, it requires an individual roll call vote. 6. ~n the original page should be put with the original copy of the O~dinance so that the form first introduced is kept with the version as it appears after amendment in the original records of the City Clerk. 7. I am also forwarding a memo which you may wish to distri- bute to the Council for the Council's information. JANES E. FISHER City Attorney June 18, 1971 TO: FROM: SUBJECT: Citizens and Businessmen in the City of Kenai John F. Steinbeck, Mayor Inception of the 1% Sales Tax, City of Kenai On May 25, 1971, the voters of Kenai approved the Capital Projects Program and the imposition of a 1% Sales tax for 5 years, dedicated to the debt service on these projects. At the Tuesday, June 16, 1971 meeting of the City Council, we agreed that the tax should commence July 1, 1971 and that the Borough should be the collector for these taxes. There were many reasons for using this approach. But foremost was the concept of ease to you in collecting and remitting these taxes---and the economies realized in using one form, mailing one check, having one set of rules, one clerical and administrative staff, and so on. The Borough has graciously agreed to re-desJ.gn their form to accomodate the City and to devise a handy tax refer- ence table to be used in figuring the tax on each sale. The table will appear to be based on a simple 4% tax schedule but is in reality a bringing together of two seperate levies, to implement two seperate laws for two very different purposes. The July 1, 1971 starting date was chosen because we feel we have a mandate from the citizens to get these programs started this year. In order to bring a touch of p~Ndence to our haste, we anticipate sell{ng no more than one million dollars in bonds this year (August). The debt service will start immediately; therefore, we must be prepared to meet these costs. The projects we anticipate are: Street Improvcmcnts Planning phase, Civic Center Water & Sewer Public Safety Building Airports Parks Small Boat Harbor 235,uu0 40,000 200,000 450,000 35,000 35,000 5,000 1,000,000 page To Summarize: 1. As of July 1, 1971, the sales tax for ~our operation.al purpose only will be 4%, (1% City, 3% Borough.) 2. Reporting, remitting, rules and all other mechanical operations will be the same as now. 3. You will be supplied with a combined sales tax table for sales of $.01 to $100.00 4. You will be supplied with new forms for reporting and computing the tax prior to September 30, 1971. I personally, would like to express my appreciation for your support of, and faith in the Kenai City Government. I think we have a good Council, a good Administration, a GREAT City and some fine people in it. Thank you. John F. Stetnbeck, Mayor By Ra d D. Burr, Finance Director UTILITIES BOX 580 - KENAi, ALASKA 99611 - TI/L 283.?555 June 1S, 1971 Mayor and Council Box 580 Kenai, Alaska RI/: Implementation of sales tax. In accordance with the directions of Council, On Friday, 11 June 1971, a meeting was held with the Borough Chairman, Borough Finance Director, and Borough Attorney, Fins,ce Director Burt, and myself, to coordinate the implementation and administration of the sales tax in order to meet the I Suly 1971 deadline. We agreed upon the following: 1. A schddule for computation of sales tax will be prepared by Finance Director Hille and reviewed by Mr. Burt. 2. A reporting form for sales tax will be prepared by Mr. Hille, and reviewed by Finance Director Burt. 3. After the 1st of July, 1971, additional matters relating to collection procedures can be "ironed out". 4. The Borough Code of Ordinances will require some changes, but:they are believed to be minor. Such a change usually requires approximately 90 days. Also, such changes should probably affect the administration rather thaa the legal b~is of the tax itself. The levy, of course, will be an individual and s.eparate one by the City of genai. 5. A contract for the administration of the sales tax will be prepared for execution and approval by the respective agencies. 6. The proeedures in this tax, or rather the time deadline, are approxi- mately as follows: a. Levy of the tax by passage of the Ordinance. b. Be certain that the informational materials -- the tax schedules primarily -- are in the hands of tile retail merchants in Kenai by the elective date of the tax. c. The other required materials, primarily a reportin~ Form, in the hands o£ the merchants as soon after the 1st of July as possible; however, the actual tax reports are not due until the end of October. 7. I would suggest some type of infonnatinnal notification of the effec- tive date of the tax, rather than relying upon public news reports. For example, a personalized letter and accompanying tax schedules from either the Mayor or the Manager might be in or.d.er to arrLvo~a~t~e respectiv? cc. Borough Attorney ~ES F.. FISItER ;V ^tierney A~IENDMENT NO. 1 TO PENDING ORDINAHCE ORDINANCE 197-71 CITY OF KENAI - It was moved by vote that: ~4~_a~,~__~P~y_~'' ,and seconded by and passed by unanimous roll call A. So much of Section 1 of pending Ordinance 197-71 as pertains to proposed Code Section 7-29, and Ordinance Section 2 be deleted from the pend- ing version of Ordinance 197-71. B. Substituted and enacted in lieu o£ the deleted sections are tho provisions entitled "Borough Sales Tax Adopted by Reference -- Section 7-29", "Tax Schedule -- Section 7-30", and Section 2 in the form and language as stated in the proposed amendments attached hereto.