(A) PENALTY. A penalty equal to 5% of the delinquent tax shall be added to the tax for the first month, or any part thereof, and an additional 5% shall be added to the tax due for each month, or fraction thereof, of delinquency until a total penalty of 20% of the tobacco products tax due has accrued. The penalty shall be assessed and collected in the same manner as the tax is assessed and collected. The penalty does not bear interest.
(B) INTEREST. In addition to the penalty provided in subsection (A) above, interest assessed on delinquent tax shall accrue at the rate of 15% per annum. 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) Cite the offender for a violation of this Chapter. Any person, firm, or entity violating any provision of this Chapter is guilty of a minor offense and shall be subject to a penalty as provided in § 1.24.040 or if no fine is there established, in an amount not to exceed $500 for each violation or day a violation exists. In all cases where a person is found to have violated this Chapter, the court shall order the person to file an accurate tobacco products tax return within 15 days, in addition to any fine that may be imposed as a result of the violation. Prosecution under this subsection does not limit the ability of the City to recover any amount of unpaid taxes through civil action or as otherwise provided by this Chapter;
(2) File a civil complaint against the distributor for violation of any obligation in this Chapter;
(3) Make a tobacco products tax assessment against the distributor, with the assessment based upon an estimate of tax levied and owed by the distributor during the period and institute civil action to recover the amount of the tobacco products tax, interest, and penalty due and to request injunctive relief. The estimate of tax may all be derived from past tobacco products tax returns of the distributor or their predecessor, the general economic level of the business community, information from tobacco products 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 tobacco products tax due. Notice of the estimated assessment of tobacco products taxes due shall be furnished the distributor by the City via first-class mail to the last known address of the distributor or via hand delivery to the distributor and the estimated assessment shall become final for the purposes of determining liability of the distributor to the City after 30 days of the date of mailing or hand-delivery of the estimated assessment to the distributor unless the distributor earlier files with the City an accurate tobacco products tax return, supported by satisfactory records or documentation 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 distributor whether tangible or intangible and wherever located. 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 Aleutian Islands or Anchorage 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.
(E) WAIVER. A penalty assessed under this section for the delinquent remittance of tobacco products tax or failure to file a tobacco products tax return may be waived by the City Manager, upon written application of the distributor accompanied by a payment of all delinquent tobacco products tax, interest and penalty otherwise owed by the distributor, within 45 calendar days after the date of delinquency. A distributor may not be granted more than one waiver of penalty under this subsection in any one calendar year. The City Manager shall report such waivers of penalty to the City Council, in writing.
(Ord. 2021-02, passed 3-30-21)