§ 5.18.430. Computation—Maximum tax.

A.

The sales tax referred to in KPB 5.18.100 shall be applied only to the first $500.00 of each separate sale, rent or service transaction, except as otherwise provided in this section.

B.

Except as provided below for long-term vehicle leases, the payment of rent, whether for real or personal property, in excess of $500.00 and for more than one month, shall be treated as several separate transactions covering the rental/lease for one month each.

C.

Services provided on account and billed to the customer on a periodic basis are subject to application to the tax on a maximum of $500.00 of each billing, per account. For purposes of this section, any advance payment for services other than to a trust or escrow account is considered to be paid pursuant to a "billing."

D.

Each night's rental of each individual unit of temporary lodging shall be considered a separate transaction and therefore the maximum tax computation shall be calculated on a per unit per night basis. Rental by a single person or entity of an entire facility, such as a lodge or hotel for multi-person overnight use, does not affect this provision that each night's rental of each individual unit shall be considered a separate transaction.

E.

Long-term vehicles leases shall be treated as one transaction per year, and per fractional year, of the lease term. The tax paid for any fraction of a year shall equal the tax paid for a whole year. The sales tax for the entire long-term vehicle lease shall be due and collected at the time of the first payment. Tax shall be calculated at the sales tax rate in effect on the day the lease is signed. There shall be no refund of such taxes should the lease terminate earlier than on its terms. Any extension of the initial lease term shall be treated as a new long-term vehicle lease.

F.

Any increase to the maximum sales tax described in subsection (A), above, shall not take effect until ratified by a simple majority of voters at a regular borough election.

G.

Recreational sales shall be treated on a per person per day basis and therefore the maximum tax computation shall be calculated on a per person per day basis. For purposes of this subsection, the term "person" means an individual human being.

(Ord. No. 2016-31 , § 9, 9-6-16; Ord. No. 2014-18 , § 1, 6-17-14; Ord. No. 2006-41, § 1, 1-2-07; Ord. No. 2005-09, § 2, 6-7-05; Initiative Ord. No. 2005-02, § 2, 10-4-05; Ord. No. 2002-39, § 12, 12-10-02; Ord. No. 94-59, § 1, 1994; Ord. No. 94-27, § 11, 1994; Ord. No. 90-48, § 1(part), 1990; Ord. No. 88-40, § 9, 1988; Ord. No. 84-74, § 1(part), 1985)

Editor's note

Ord. No. 95-37, § 1, adopted Dec. 12, 1995, repealed the sunset provision terminating changes to the sales tax code in Ord. 94-59 on Dec. 31, 1995. All such changes shall continue in effect without interruption.