(A) PENALTY. A penalty equal to five percent (5%) of the delinquent tax shall be added to the tax for the first month, or any part thereof, and an additional five percent (5%) shall be added to the tax due for each month, or fraction thereof, of delinquency until a total penalty of fifteen percent (15%) of the tax due has accrued. The penalty shall be assessed and collected in the same manner as the tax is assessed and collected.
(B) INTEREST. In addition to the penalty provided in subsection (A) above, interest assessed on delinquent tax shall accrue at the rate of ten percent (10%) per year. Interest shall accrue from the date of delinquency until paid in full and shall be collected in the same manner as the delinquent tax is collected.
(C) PRIORITY FOR CREDITING PAYMENTS. All payments received shall be applied in the following order:
(1) Penalties due, beginning with the oldest penalty;
(2) Interest due, beginning with the interest due on the oldest month; and
(3) Taxes due, beginning with the taxes due from the oldest month.
(1) Criminal action. File a criminal complaint against the seller or collector for violation of this Chapter.
(2) Civil action. File a civil complaint against the seller or collector for violation of any obligation in this Chapter.
(3) Make a tax assessment against the collector, with the assessment based upon an estimate of the gross purchases made by the collector during the period and institute civil action to recover the amount of the tax, interest, and penalty due and to request injunctive relief. The estimate of gross purchases may all be derived from past tax returns of the purchaser or their predecessor, the general economic level of the business community, information from tax audits conducted by the City, if available, returns of comparable businesses and any other information believed to be reliable or helpful to the City in making an estimate of the tax due. Notice of the estimated assessment of taxes due shall be furnished to the collector by the City via first-class mail to the last known address of the collector or via hand-delivery to the collector and the estimated assessment shall become final for the purposes of determining liability of the collector to the City after thirty (30) days of the date of mailing or hand-delivery of the estimated assessment to the collector unless the collector earlier files with the City an accurate tax return, supported by satisfactory records or documentation of purchases made, indicating a lesser liability.
(4) The tax, interest and penalty imposed under this Chapter shall constitute a lien in favor of the City upon all the property of the collector. The lien arises upon delinquency and continues until the liability is satisfied or the lien is foreclosed. The lien is not valid as against a mortgagee, pledgee, purchaser or judgment lien creditor until notice of the lien is filed in the office of the recorder for the recording district. The manner provided for federal tax liens under AS 40.19.010 et seq. are by this reference incorporated herein as if set forth in full.
(Ord. No. 2003-05, passed 5-6-03)