Section 15.50.130. Joint administration of state and municipal tobacco taxes.

	(a)  A municipality participating in the joint administration of cigarette and other tobacco product taxes must either amend an existing written agreement or enter into an initial written agreement with the department to memorialize the responsibilities of each party to the agreement. An agreement must include  
		(1) a detailed statement of the purpose and scope of the agreement between the parties;  
		(2) limitations of the parties;  
		(3) identification of representatives of each party; and  
		(4) all pertinent appendices or other information that the department determines necessary.  
	(b)  If the department administers municipal cigarette taxes under an agreement authorized under AS 43.50.150, the department may agree to  
		(1) collect municipal taxes consistent with department practices, using department forms, timelines, and requirements;  
		(2) jointly audit returns according to the department's practices and procedures; and  
		(3) jointly investigate taxpayer activity.  
	(c)  Reimbursement of costs to the department must include normal operating expenses associated with the administration of cigarette taxes within the department to include wages, benefits, litigation costs, and administration and overhead costs and be allocated in a manner prescribed by a written agreement between the department and the participating municipality.  
	(d)  A municipality engaged with the department in the sharing of taxpayer information pertaining to cigarette and other tobacco product taxes must enter into a written agreement with the department. The agreement must include the purpose, scope, limitations, and identification of parties authorized to share confidential information.  
	(e)  A municipality must require employees that will have access to department records to  
		(1) read and become familiar with department confidentiality policies;  
		(2) agree to comply with all state confidentiality requirements;  
		(3) attend any department training sessions on confidentiality at the request of the department; and  
		(4) annually sign the department's confidentiality agreement and return the signed agreement to the department.  
	(f)  If the department shares confidential information with a municipality, the municipality may not share the information with other agencies, officials, or contractors working on behalf of the municipality unless the department grants authorization.  
	(g)  A municipality is responsible for immediately notifying the department of any breach of confidentiality, mitigating any confidentiality breach as required under the agreement with the department, and bearing all relevant costs.  
	(h)  The department may cease joint administration of cigarette and other tobacco product taxes if a municipality or its employees violate department confidentiality policies and requirements.  

Authorities

43.05.080;43.50.035;43.50.150

Notes

Authority

AS 43.05.080 AS 43.50.035 AS 43.50.150

History

Eff. 8/8/2015, Register 215