§ 5.18.200. Exemptions/waivers—Exemptions.

A.

The following classes of retail sales, services and rentals are exempt:

1.

Casual and isolated sales or rentals by a seller in the business of selling goods or services, or making rentals; but only if the total annual gross sales for goods sold, services rendered or rentals made by the seller does not exceed $2,500.00 per year.

2.

Human health care services provided by, and prescription drugs, devices, and supplies prescribed for human use by, a person licensed or certified to provide those services or goods, as applicable, under Alaska Statutes Title 08.

3.

Sales of and subscriptions to newspapers, and subscriptions to periodicals.

4.

Dues or membership fees for nonprofit organizations;

5.

Sales of animal food, seed, plants and fertilizers to farmers using such commodities to produce goods for sale;

6.

Retail sales of real property. Services performed by a real estate broker or agent are not exempt under this section;

7.

Retail sales, rents or services which the borough is prohibited from taxing by the Constitution or laws of the United States or of the State of Alaska;

8.

Services performed by morticians licensed under Alaska law, and retail sales of funeral supplies by morticians and municipalities;

9.

Receipts of nonprofit schools and student organizations within the schools for extracurricular activities or events;

10.

Financial service transactions. For purposes of this chapter, financial service transactions are limited to: deposit account services, loan transaction fees, transactions relating to the sale or exchange of currency or securities, transactions for conversion of negotiable instruments, safe deposit services, escrow collection services, late fees, overdraft fees, and interest charged on past due accounts;

11.

Sale of passenger seat tickets by an air charter, air taxi, or commercial airline, however ground-based wildlife viewing, sport fishing, hunting or any other goods or services provided in combination with such air charter, air taxi or commercial airline are recreational sales not exempt under this section;

12.

Sales of pull-tabs, bingo cards and raffle tickets by charitable organizations licensed by the state;

13.

Title insurance premiums;

14.

Food purchased with coupons issued under the federal food stamp program;

15.

Retail sales of food are exempt in the following circumstances:

a.

When served in cafeterias or lunchrooms of elementary, secondary, post-secondary schools, colleges or universities which are operated primarily for students and staff, and are not operated for the public or for profit;

b.

When served to clients and staff, and not to the public or for profit, as part of services provided by a nonprofit hospital or other nonprofit or government organization licensed by the State of Alaska for the care of humans;

c.

Meals delivered by a nonprofit organization to handicapped or senior citizens at their place of residence or meals served on the premises of a nonprofit senior citizens' organization which receives funding from the State of Alaska or a political subdivision of the state: provided that the sale price of such meals does not exceed the cost of delivery or service of such meals;

d.

Exemptions/waivers - Sales of nonprepared food items by sellers authorized to participate in the federal food stamp program and by convenience stores. Sales tax is prohibited on sales of nonprepared food items sold by sellers authorized to participate in the federal food stamp program and by convenience stores from September 1 until May 31 of each year. These food items exempted from sales tax include those which have been previously granted exemption in KPB 5.18.200(14) for food purchased with coupons issued under the federal food stamp program. "Convenience store" means a small retail business that stocks a range of everyday items such as groceries, snack foods, confectionery, toiletries, soft drinks, tobacco products, magazines and newspapers, with those items providing the majority of the store's sales.

16.

Senior, disabled resident, and disabled veteran housing rent. Rental payments for a dwelling unit for a permanent place of abode by a resident who is at least 65 years of age, or who is a disabled veteran or a disabled resident. Disabled veteran has the meaning provided in KPB 5.12.105(F)(3), and the term disabled resident has the meaning provided in KPB 5.12.110, as those provisions are now enacted or may be hereinafter amended. Dwelling unit means a house, apartment, or room in a residential facility such as congregate housing or assisted living. Permanent means the tenant has lived within the Kenai Peninsula Borough for a minimum of six months and is a resident of the State of Alaska. The landlord must accept an affidavit on a form provided by the borough or otherwise acceptable to the borough administration from the tenant as proof of age and eligibility for this exemption. If any person under 65 years of age, other than a spouse, resides in the dwelling unit with a qualifying senior, the exemption may not be granted unless the senior is the principal source of support for such person less than 65 years of age, or unless the person qualifies as a disabled veteran or a disabled resident. This exemption shall also apply to a resident at least 60 years old who is the widow or widower of a person who qualified for this exemption as a senior citizen or a disabled veteran.

17.

Childcare and adult daycare services.

18.

Services provided and material consumed in the fulfillment of a manufacturer's warranty, non-manufacturer's warranty, or service agreement. The initial purchase of a manufacturer's warranty, non-manufacturer's warranty, or service agreement is subject to tax at the time of purchase but may be included in the initial sales transaction for application of KPB 5.18.430. Any portion of a repair paid by the customer through a deductible or other means is not exempt under this section.

19.

Services provided by a cooperative nonprofit organization recognized by either the State of Alaska or the federal government to assist in preventing, containing, and removing spilled crude oil or refined petroleum products, and to cooperate with governmental agencies, private organizations, and industry in preventing, containing, and removing any spills of crude oil or refined petroleum products upon waters in the Kenai Peninsula Borough and the adjacent lands.

20.

Sales or services provided by an organization that has obtained from the Internal Revenue Service and provided proof to the borough of a 501(c) exemption ruling, other than under 501(c)(12), so long as the sales, services or rentals are occasional or intermittent in nature and not provided as an ongoing trade or business that is regularly carried on from an established physical location or are from admission fees.

21.

Freight hauling services provided by common carriers, including freight transport by ship, barge, aircraft, rail or motor vehicle. Freight hauling services include the transportation of goods by common carrier, as an intermediate service as defined in KPB 5.18.210 D., and the transportation of goods that either originate or terminate outside the borough. Delivery services by private carriers, towing, moving services and courier services are not considered to be freight services and are not exempt from sales tax unless they are provided as an intermediate service as defined in KPB 5.18.210 D.

B.

The following classes of buyers are exempt from the provisions of this chapter:

1.

Retail sales, services and rentals to:

a.

An organization that has obtained a 501(c) exemption ruling from the Internal Revenue Service, as long as proof of such ruling is provided to the borough administration;

b.

A church that is organized as a nonprofit corporation under the laws of the State of Alaska, as long as proof of such incorporation is provided to the borough administration;

2.

Retail sales, services and rentals to the United States, the State of Alaska, or any instrumentality or political subdivision of either;

3.

Retail sales, services and rentals to federally recognized Indian tribes.

C.

The following classes of sellers are exempt from the provisions of this chapter:

1.

Groups sponsored by public or nonprofit schools.

(Ord. No. 2017-26 , § 1, 10-10-17; Ord. No. 2016-45 , § 1, 1-17-17; Ord. No. 2016-40 , § 1, 1-3-17; Ord. No. 2016-31 , § 3, 9-6-16; Initiative Ord. No. 2008-1, § 1, 11-14-08, eff. 1-1-09; Ord. No. 2004-17, § 1, 6-15-04; Ord. No. 2002-39, §§ 2—5, 12-10-02; Ord. No. 2002-34, § 1, 9-3-02; Ord. No. 99-44, § 1, 9-7-99; Ord. No. 97-12, § 1, 1997; Ord. No. 96-12, § 1, 1996; Ord. No. 94-54, § 1, 1994; Ord. No. 93-58, § 1, 1994; Ord. No. 93-45, § 1, 1993; Ord. No. 92-51, § 1, 1992; Ord. No. 91-54, § 1, 1991; Ord. No. 90-71, § 6, 1990; Ord. No. 90-59, § 4, 1990; Ord. No. 90-48, § 1(part), 1990; Ord. No. 88-40, § 20(part), 1988; Ord. No. 87-65, § 1, 1988; Ord. No. 86-39, § 1, 1986; Ord. No. 84-74, § 1(part), 1985)