Section
Levy of Sales Tax; General Provisions
6.10.110. Sales tax levied
6.10.120. Place of sale, rental or service
6.10.125. Agreements for payments in lieu of tax
6.10.130. Obligation to pay, collect, and remit tax
6.10.140. Definitions
6.10.150. Exempt transactions
6.10.160. Examples of taxed transactions
Administration; Registration Remittance And Collection; Records
6.10.210. Rulings and regulations
6.10.220. Tax schedule
6.10.230. (Repealed)
6.10.235. City business license required
6.10.240. Registration of buyers and sellers entitled to exemption
6.10.250. Taxes collected held in trust for city
6.10.255. Deadline; filing return; remittance of taxes
6.10.260. Discontinuation; sale or transfer of business - final return
6.10.265. Seller not to assume tax
6.10.270. Taxation of installment sales
6.10.275. Refunds for overpayment of taxes
6.10.280. Duty to keep books; investigation
6.10.285. Confidential material
6.10.290. Extensions
6.10.295. Authority to contract for administration of tax
Protest; Enforcement
6.10.310. Protest of tax
6.10.320. Omissions and civil penalties
6.10.330. Severability clause
6.10.340. Lien
6.10.350. Accelerated returns
6.10.360. Violations a minor offense
Statutory reference:
Statutory authority, see A.S. 29.45.700 through 29.45.710
LEVY OF SALES TAX; GENERAL PROVISIONS
(a) Except as provided in division (b) of this section, there is levied a sales tax of 4% on all sales within the corporate limits of the city and all rents, and on all services made, rendered or performed within the city, measured by the gross sales price of the seller.
(b) There is levied a sales tax of 2% on the sale of raw seafood products delivered directly or indirectly by the seller to a buyer within the city including raw seafood products delivered by means of a tender to a processor of raw seafood products for processing in the city.
(Ord. 93-4, passed 12-8-92; Am. Ord. 98-05, passed 5-12-98; Am. Ord. 00-02, passed 6-15-00; Am. Ord. 2013-04, passed 10-8-13)
(a) Unless otherwise provided in this chapter, a taxable sale of tangible or intangible property occurs if any significant element of the making or performance of the sale agreement occurs within the city during the tax year, including, but not limited to, the offer to sell or buy and its receipt, the acceptance of the offer or the agreement to buy or sell, the delivery of any part of the property to either the buyer or to any person transporting the property to the buyer, transfer of title and possession to the buyer or to any person transporting the property to the buyer and the payment or partial payment for the property.
(b) Unless otherwise provided in this chapter, a taxable rental occurs if any significant element of the making or performance of the rental agreement occurs within the city during the tax year, including, but not limited to, the completion of the execution of the rental agreement, the making of an oral rental agreement, the delivery of the fully executed rental agreement, the transfer or relinquishment of possession of the rented space or property to the lessee or renter, the possession or use of the rented space or property regardless of when the rental agreement was made or the use or possession of the space or property began and shall be taxable for the portion of the rental period that occurs during the tax year.
(c) Unless otherwise provided in this chapter, a taxable sale or performance of a service occurs when any significant element of the sale or performance of the service occurs within the city during the tax year, including the offer and acceptance, the delivery to the purchaser or to the person who is to provide a service of a ticket, coupon or other instrument entitling a holder to a service, the commencement of the performance of a service, the completion of the performance of a service, and the performance of any part of a service. The sale within the city of a service is taxable without regard to where the service is or is to be performed. Unless otherwise provided by law, the entire value of an unsegregated service is taxable if any part of the service is performed within the city during the tax year. The performance of a service is not taxable if the tax under this chapter was paid on the sale of the service. If a service sold outside the city is to be performed in part or in whole inside the city, the person providing the service is the seller under this chapter and shall be liable for the collection and remittance of the tax.
(Ord. 2016-02, passed 2-9-16)
The City Council may, by ordinance, approve an agreement for receipt of payments in lieu of sales and use taxes from persons who otherwise would be required either to pay or to collect and remit sales and use taxes in connection with the construction of an improvement to real property for a tax exempt entity provided:
(a) The person contracting with the tax exempt entity agrees in writing to a specific reduction in the contract price for construction of the improvement to real property; and
(b) The price reduction is reflected in a signed modification of the construction contract made after bids have been opened; and
(c) The tax exempt entity agrees to recognize the city as contributing to the project an amount of money equal to the agreed price reduction.
(Ord. 2007-02, passed 6-12-07)
(a) Except as provided in division (b) of this section, the obligation to pay the tax is upon the buyer. The obligation to collect and remit the tax to the city is upon the seller. The seller shall collect the tax on all sales at the time of payment by the buyer.
(b) In the case of sales of raw seafood products taxed under § 6.10.110(b), the obligation to pay the tax is on the seller. The buyer shall retain the tax from the seller at the time of the sale and shall remit the amount retained to the city. In the case of raw seafood products, the buyer may, if it elects, assume the obligation to pay the tax, rather than retain the tax from the seller.
(c) Collection is enforceable by the seller, or in the case of raw seafood products, by the buyer, as a certified tax collector of the city; provided, however, that this shall not limit the liability of the person obligated to pay the tax.
(Ord. 93-4, passed 12-8-92; Am. Ord. 00-02, passed 6-15-00)
For the purpose of this chapter, the following definitions shall apply unless the context clearly indicates or requires a different meaning.
BUYER. The person who buys, takes title to, or takes possession of property, services, or rentals.
COLLECTOR. All persons required to collect the tax levied under this chapter, whether a seller or a buyer of raw seafood products as defined in this chapter.
COIN-OPERATED MACHINE. A slot machine, marble machine, juke box, merchandise vending machine, laundry, dry cleaning and any other services-dispensing machine or amusement device of any kind which requires the insertion of a coin to make it operate.
MAYOR. The Mayor of the city of Sand Point, Alaska, or the Mayor's designee.
PERSON. Has the meaning given in § 1.10.030.
RAW SEAFOOD PRODUCTS or RAW FISH PRODUCTS. All raw seafood products including, but not limited to, clams, crab, shrimp, and other shellfish, salmon, herring, pollock, halibut and other groundfish and salmon roe that have not been processed.
SALE. Includes:
(1) Every sale of service;
(2) Every rental of real or personal property;
(3) Every sale of the use or play of a coin-operated machine;
(4) Every sale of tangible personal property; regardless of quantity or price, whether sold by coin-operated machine or otherwise;
(5) Every sale or exchange of services, use or title in property, installment credit and conditional sales are included in the term;
(6) Every sale of raw seafood products including an event that occurs when a person within the city becomes directly or indirectly obligated for the payment for raw seafood products without regard to whether delivery of the raw seafood products occurred inside or outside the city if the raw seafood products are purchased for delivery or are delivered to a location inside the city. The place of the sale is the business location of the buyer inside the city. A sale in the city occurs if the raw seafood products are purchased by a buyer and delivered to the buyer inside the city even if transported outside the city prior to processing.
SALES PRICE. Consideration paid by the buyer in terms of money and, in the case of a sale involving an exchange of property, the fair market value of the property exchanged, including delivery or installation costs, taxes, or any other expenses whatsoever, measured by the gross sales of the seller. In the case of raw seafood products, SALES PRICE includes any direct considerations such as fuel or supplies furnished by the processor or offsets to the cash value for gear furnished.
SELLER. Includes persons who are vendors of property, persons furnishing services, lessors of rental space or goods, and all persons making sales.
SERVICES. Includes all services of every manner and description which are performed or furnished for compensation, except services rendered to an employer by an employee, including but not limited to:
(1) Professional services;
(2) Services in which a product is made to order
(3) Utilities and utility repair services not provided by the city including, but not limited to, electrical, cable television and telephone services; .
(4) The sale of transportation services;
(5) Services rendered for compensation by any person who furnishes any such services in the course of his or her business or occupation;
(6) Services wherein labor and materials are used to accomplish a specified result;
(7) Any other services including advertising, maintenance, recreation, amusement, and craftsmen services.
(Ord. 93-4, passed 12-8-92; Am. Ord. 00-02, passed 6-15-00)
The following shall be exempt from the sales tax imposed by the city:
(a) Casual and isolated sales not made in the regular course of business;
(b) Sales of insurance and bonds of guaranty and fidelity;
(c) Funeral charges and services;
(d) Sales by churches, except where such organizations are engaged in business for profit or savings or competing with other persons engaged in the same or similar business;
(e) Sales, services and rentals directly to the governments of the United States, the state, the city, the Aleutians East Borough, or any instrumentality or political subdivision thereof; provided such sales shall have written authorization or purchase order number to be granted an exemption prior to sale; provided, however, that this exemption shall not apply to the sale of materials and supplies to contractors for the construction, manufacture, or production of property or rendering of services for sale to such government units or agencies pursuant to contract, in which event the contractor shall be deemed the buyer, subject to the payment of the tax;
(f) Sale of real property; excepting the commissions earned by real estate agents shall be taxable as a sale of services;
(g) Catalog sales and shipments by the seller via common carrier to communities or establishments beyond the city limits;
(h) Rental of single family homes, apartments, trailers, and other dwelling units when used for residential purposes and rented for a term of one month or more, including accessory structures subordinate to residential use, such as garages and sheds. The rental of rooms for residential purposes by hotels, motels, boarding houses, bed and breakfasts, and other such hostelries shall be taxable regardless of the length of rental;
(i) Medical services performed by licensed medical doctors, mid-level practitioners, dentists, optometrist, osteopaths and chiropractors; sales of medicines and drugs prescribed by medical doctors; and hospital/clinic services;
(j) Passenger fares of commercial airlines or steamship companies;
(k) Services rendered by banking or savings and loan institutions, trust companies, or credit unions;
(l) Nursery and baby sitting services;
(m) Sale of products or services provided by the governments of the United States, the state, the city, the Aleutians East Borough, or any instrumentality or political subdivision thereof;
(n) Purchases made with food stamps or similar type certificates issued by the United States Government;
(o) Sale of food supplies to cafes, restaurants and other establishments where food is sold to the public for consumption in the normal course of business of cafes, restaurants and other such establishments;
(p) Rental of real property for commercial, business, or industrial uses;
(q) Sale of newspapers and periodicals;
(r) Sales, services, or rentals that the city is prohibited from taxing by the constitution or laws of the United States or the State of Alaska;
(s) Gross receipts derived from the sale or use of materials or services to or by any person in connection with the construction of an improvement to real property for a tax exempt entity for which an agreement for payments in lieu of tax has been approved under § 6.10.125 of this Code;
(t) Sales of processed seafood products made by a seller who has:
(1) Collected a raw seafood tax on the purchase of the same seafood prior to processing; and
(2) Has entered into a payment in lieu of taxes agreement with the city.
(Ord. 93-4, passed 12-8-92; Am. Ord. 00-02, passed 6-15-00; Am. Ord. 2007-02, passed 6-12-07; Am. Ord. 2016-02, passed 2-9-16)
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