Denali Borough, ALASKA

Ordinance # 01-13

Introduced by: Teresa Hall

Version B

An ordinance establishing a 2% general sales tax within the Denali Borough



Section 1

PURPOSE AND INTENT: it is the purpose of the tax levied under this ordinance to raise revenue. The scope of the tax shall be broadly interpreted and exemptions shall be allowed only when the sales or service falls within an exemption defined with in this ordinance.



Section 2.

IMPOSITION OF TAX RATE: There shall be levied and collected a 2% general sales tax on retail sales and rentals made and services performed within the Denali Borough. Effective date commencing on January 1 2004 subject to review on or before the regular scheduled meeting of the Denali Borough in January, 2010.


Section 3.


TAXABLE ITEMS:  There shall be added to the following items a 2% general sales tax

1.      Sales of food items prepared for immediate consumption.

  1. Sales of activities such as:

a)      Horse back riding or carriage rides,

b)      Raft rides on rivers located within the Denali Borough,

c)       Flight seeing trips beginning or ending within the Denali Borough,

d)       Dog sled demonstrations,

e)       Rental of water craft or Bicycles

f)       Rental of Motor Vehicles

g)      Sight seeing excursions beginning or ending within the Denali Borough

h)      Dinner theaters


  1. Sales of Electricity
  2. Sales of Telephone communications
  3. General Retail Sales


                                               Section 4


EXEMPTIONS: The tax levied under this ordinance shall not apply to the following

  1. Casual and isolated sales including small cottage business that make less then $1000 in a calendar year. Proof will be provided to Denali Borough Office in a form determined by Administration.
  2. Sales of professional services related to the field of medicine including Doctors, Physicians Assistants, mental health councilors, Dentistry, Naturopath, Chiropractor or Physical Therapist provided that sale is with in the scope of state license or certificate.
  3. Any controlled substances supplied or prescribed, by any person listed in #2.
  4. Sales and rental of hearing aides, crutches, wheelchairs, or items needed for assisted living.
  5. Sales of newspapers or any other periodicals by a carrier made directly to consumer or users where the carrier is responsible for the collection of sales revenue at the time of delivery.
  6. Membership dues, union dues, membership fees or donations to any non-profit organizations that have exempt certificate from the IRS.
  7. Retail sales, services or rentals at a school activity by a school- approved group, raising funds for an approved purpose.
  8. Retail sales in school cafeterias of food and beverages not sold to the public.
  9. Child day care, pre-school and home babysitting services or a non-profit youth day recreation, summer or similar camps serving persons less than 18 years of age.
  10. Land leases, land or housing rentals or sales
  11. Transportation such as taxi, bus, or Alaska Railroad, or sales of motor vehicles.
  12. Any item or service currently being subject to a tax already provided by ordinance of the Denali Borough.


Section 5


SENIOR CITIZEN SALES TAX EXEMPTION: Any person who is a resident of the state of Alaska, within the Denali Borough, and is sixty-five years of age or older may apply and be issued a tax-exempt card. This card will entitle the holder to be exempt from sales tax for the sales of goods for personal use that would be taxed under this ordinance.


Section 6


SELLER TO ADD SALES TAX TO SELLING PRICE: Every Seller shall add the amount of the sales tax levied by this ordinance to the total selling price and the tax will be stated separately on any sales receipt. A Sign shall be prominently placed in each business that collects sales tax under this ordinance stating the amount of sales tax to be collected.

Section 7


COMPENSATION FOR COLLECTING TAX: As compensation for collecting the tax, a merchant may deduct and retain each month two percent (2%) of the amount of taxes due to be transmitted to the Borough for that month, if the merchant has:

1.      Timely transmitted all taxes due under this ordinance during each of the preceding twelve months: and

2.      Timely completed and filed all returns required by this ordinance during each of the preceding twelve months; and

3.      Complied with all other provisions of this ordinance during each of the preceding twelve months.

Provided however, that the amount deducted and retained

 by a merchant under this subsection shall not exceed two hundred dollars for any month.


Section 8

PROCEDURES AND FORMS: the Administration shall adopt and amend procedures, fees and forms for the administration of this chapter after final approval from the Denali Borough Assembly.



Section 9

DEFINATIONS: All words and phrases shall be understood to use their usual and customary definitions.


EFFECTIVE DATE: This ordinance becomes effective upon its approval by the Denali Borough Assembly, and the majority of voters in the next election. Taxes will be collected beginning the 1st day of January following the election.


Date introduced:  September 9, 2001


First Reading:  September 9, 2001


Public Hearing:_______________________



Passed and approved by the Denali Borough Assembly

 This _______ day of ________, 2001