§ 5.18.230. Exemptions/waivers—Exemptions—Nonprofit or government exemption certificate.

A.

In order to receive an exemption from payment of sales tax under section 5.18.200(B)(1), a buyer shall obtain a nonprofit exemption certificate as provided in this section, and present the certificate at the time of each sale.

B.

In order to receive an exemption from payment of sales tax under section 5.18.200(B)(2), a buyer shall either:

1.

Obtain a government exemption certificate as provided in this section, and present the certificate at the time of each sale; or

2.

Present to the seller a government purchase order, government check or credit card issued in the name of the government agency, for each sale.

C.

A buyer may apply for a nonprofit or government exemption certificate, on the form provided by the borough. Upon receipt of a completed application the borough will issue the certificate, which will be valid for the calendar year for which the application is made.

D.

No exemption certificate for a class of buyer exempt under section 5.18.200(B)(1) shall be approved by the mayor until the applicant has produced suitable evidence that it is currently incorporated by the State of Alaska as a nonprofit corporation and that it has received tax-exempt status from the United States Internal Revenue Service.

E.

The following penalties shall be imposed by the borough for misuse of the nonprofit or government certificate:

1.

Immediate cancellation and demand for surrender of the certificate.

2.

Retroactive denial of the exemption, and collection of sales taxes formerly exempted under the certificate.

(Ord. No. 2016-31 , § 5, 9-6-16; Ord. No. 2011-32, § 6, 9-20-11; Ord. No. 94-27, § 6, 1994; Ord. No. 90-48, § 1(part), 1990; Ord. No. 89-31, § 2, 1989; Ord. No. 88-40, § 6, 1988; Ord. No. 84-74, § 1(part), 1985)