§ 3.40.060. Exemption cards.

A.

Except as otherwise provided herein, no person may acquire tax exempt cigarettes or other tobacco products in the city unless that person has been issued an exemption card in accordance with this chapter. No licensee shall claim any exemption under this chapter unless cigarettes or other tobacco products for which an exemption is claimed have been sold or transferred to a person presenting a valid and current exemption card issued by the department in accordance with this chapter, prior to such sale or transfer.

B.

Any person with an active physical business presence within the city, including a licensee, may apply for an exemption card under this section as an agent for merchants whose principal places of business are located outside of the city and who acquire from said agent cigarettes or other tobacco products exempt from the tax imposed under this chapter, provided each merchant has a valid Alaska State Business License with a tobacco endorsement and the line of business code or equivalent thereon.

C.

A merchant acquiring cigarettes and other tobacco products through an agent under this section shall be considered an exemption cardholder for all purposes under this chapter.

D.

A person or licensee issued an exemption card as an agent under this section shall comply with all provisions of this chapter except the agent shall not be required to maintain records to prove that cigarettes and other tobacco products for which an exemption is claimed under the agent's exemption card have been resold outside the city by the merchant. Violation of any provision of this chapter relating to exemption cardholders by a licensee as agent for a merchant shall be grounds for revocation of the licensee's license issued under this chapter.

E.

Notwithstanding anything to the contrary contained in or implied by other provisions of this chapter, the licensee shall be, and remain, the taxpayer liable for the payment of taxes due under this chapter.

F.

Application for an exemption card is restricted to:

1.

Persons with an active physical business presence within the city;

2.

Acting as an agent for merchants whose principal places of business are located outside the city; and

3.

Shall be on a form provided by the department.

G.

Application forms for an exemption card, provided by the department, shall require the following information to be provided by the applicant, as well as such other information deemed appropriate by the department:

1.

Applicant's name and address;

2.

Copy of the applicant's current Alaska State Business License, including a tobacco endorsement and the line of business code or equivalent;

3.

Merchant names and locations where cigarettes and tobacco products will be sold; and

4.

A fee of fifty dollars for each application.

H.

All exemption card holders must maintain a valid, current business license, with a tobacco endorsement and line of business code or equivalent, issued by the state of Alaska.

I.

Each exemption card, unless suspended or revoked by the department, is valid from the date of issuance until the end of the calendar year in which it was issued. Exemption cards may be renewed each year upon application and payment of the fee to the department.

J.

The department may suspend, revoke or refuse to issue an exemption card under this section for any violation of, or failure to comply with, the requirements of this chapter by the agent or cardholder, including any act or omission by such person which withholds, misstates or provides false or misleading information required by the department.

(Ord. No. 15-11 , § 1(Exh. A), 6-4-2015)