3.12.230 Enforcement of tax obligations.
A. Real and personal property tax obligations are liens upon the property which are prior and paramount to all other liens or encumbrances against the property. Enforcement of property tax obligations shall be conducted in accordance with applicable state law and the procedures contained in this chapter.
B. Distraint. The lien of personal property taxes may be enforced by distraint and sale of the property pursuant to this subsection.
1. Upon application to the trial courts and after written demand is first made of the person assessed for the amount of tax, penalty, and interest owing, the manager or designee may obtain a judicial order directing that property for which such taxes, penalty, and interest are owed shall be distrained and held for further proceedings; provided, however, the borough or the city demonstrates specific facts by affidavit based on personal knowledge that the property:
a. Has been concealed, is concealed, or about to be concealed;
b. Is about to be destroyed;
c. Is in the process of or about to be removed from the jurisdiction;
d. Is about to be conveyed or encumbered; or
e. Is otherwise being disposed of, or about to be disposed of, in a manner so as to defraud the city.
2. Upon execution of an order distraining the property, a hearing will be conducted no more than seven days, exclusive of Saturdays, Sundays, and legal holidays, following execution of the order, at which time the validity of the borough’s or the city’s lien shall be tested and other matters relevant to disposition of the tax obligation will be heard. The owner, upon execution of the order, will be notified of the time and place set for hearing. In the event personal service on the owner is impossible, alternative methods of service consistent with the Alaska State Rules of Civil Procedure may be employed, but in no case may the hearing required by this section be held more than seven days following the date of actual or constructive service on the legal owner.
3. At the hearing described in subsection (B)(2) of this section, the borough or city and the legal owner of the property distrained may present evidence and offer arguments as are helpful in determining whether there exists a valid lien for personal property taxes on the property distrained, and whether such taxes, penalty, and interest remain unpaid. If, at the conclusion of the hearing, the court, with or without a jury, finds that there exists a valid lien on the property distrained and that taxes, penalty, or interest on such property are unpaid, it shall issue an order of sale directing that such property be sold to satisfy the tax obligation.
4. Order of sale issued pursuant to this section shall require sale by public auction, and may not be effective sooner than 15 days following the hearing described in subsection (B)(3) of this section. Proceeds shall be applied first to attorneys’ fees, costs, penalty, interest, and taxes; remaining proceeds shall be returned to the last owner of the property distrained.
C. Civil Action. The borough or the city may, in addition to other remedies provided in this chapter, initiate civil actions to collect unpaid taxes, penalty, and interest. (Ord. 479 § 3, 1995)