A. If a seller fails to file a sales tax return, or if the city has reasonable cause to believe that any information on a sales tax return is not accurate, the city may estimate the sales tax due based on any information available.

B. The city shall notify the seller in writing that the city has estimated the amount of sales tax that is due from the seller under subsection (A) of this section, stating the estimated amount. The city shall serve the notice on the seller by delivering the notice to the seller’s place of business, or by mailing the notice by certified mail, return receipt requested, to the seller’s last known mailing address.

C. The city’s estimate of the amount of sales tax that is due from a seller shall become a final determination of the amount that is due unless the seller, within 15 days after service of notice of the estimated sales tax, gives the city a written request for a hearing.

D. A hearing requested under subsection (C) of this section shall be conducted before the mayor or the mayor’s designee, who may be a city employee. At the hearing, the seller shall have the burden of proving, by testimony or documentary evidence, that the amount of sales tax that is due is less than the amount that the city estimated. After the hearing, the person conducting the hearing shall issue a decision determining the amount of sales tax that is due from the seller. The city shall serve the decision on the seller by delivering the notice to the seller’s place of business, or by mailing the notice by certified mail, return receipt requested, to the seller’s last known mailing address.

E. A decision under subsection (D) of this section determining the amount of sales tax that is due may be appealed to the superior court as provided in the Alaska Rules of Appellate Procedure.

F. The amount of sales tax finally determined to be due under this section shall bear interest and penalty as provided in WMC 5.16.120, from the date that the sales tax originally was due, plus an additional civil penalty of $50.00 for each calendar month for which the amount of sales tax that is due has been determined. (Ord. 20-21 § 7, 2020; Ord. 01-38(SUB) § 2, 2001)