3.16.065 Collection of sales tax.
A. Pursuant to this code, taxes imposed shall be due and paid by the buyer to the seller at the time of the sale of property or product or date service is rendered, or with respect to credit transactions, at the time of collection. It shall be the duty of each seller to collect the taxes from the buyer and hold those taxes in trust for the city. Failure by the seller to collect the tax shall not affect the seller’s responsibility for payment to the city.
B. Sales tax may be collected in one of two methods and notice of the sales tax collection must be posted at seller’s premises:
1. The seller shall add the sales tax to the price or charge for the sale, rental or services, showing the tax as a separate and distinct item on any receipt, invoice, statement of account, or other records of transaction. The sales tax on more than one separately priced item may be shown as a total on the aggregate price of all items sold or rented, or services rendered, in a single transaction.
2. The seller shall include the tax in the sale or purchase price and remit to the city an amount equal to the seller’s gross receipts divided by 1.0 (sales tax number) and multiplied by the sales tax percentage in lieu of stating sales tax separately and adding it to the sales price. If a seller chooses this method, a notice to customers must be displayed, stating, “All prices include the (percent) city of Palmer sales tax.”
C. A seller may not assume, fail to add to the price or charge for a sale, rental or service, or refund to the buyer all or part of the sales tax, or advertise or represent to any person that the seller will do so.
D. Sales tax on sales of gaming and sales from coin-operated machines is not added to the sales price and collected with each transaction but is computed and paid as provided in PMC 3.16.040. (Ord. 20-002 § 3, 2020; Ord. 10-019 § 6, 2010)