FY2019-04 Revising Kodiak Island Borough Title 3.45 Severance Tax1
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Introduced by: Manager's Office
Drafted by: M. Slife
Introduced on: 6/21/2018
Public Hearing Date: 07/05/2018
Amended on: 07/05/2018
Adopted on:07/05/2018
KODIAK ISLAND BOROUGH
ORDINANCE NO. FY2019-04
AN ORDINANCE OF THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH REVISING
KODIAK ISLAND BOROUGH TITLE 3.45 SEVERANCE TAX TO ALLOW WAIVER OF
SEVERANCE TAXES FOR NON -PROFITS BY MAJORITY VOTE OF THE KODIAK ISLAND
BOROUGH ASSEMBLY.
WHEREAS, Severance tax is a form of excise tax levied on all resources extracted from Kodiak
Island Borough lands and waters; and
WHEREAS, Non profits have approached Kodiak Island Borough to harvest resources for
fundraising efforts and have had to pay severance tax thereby decreasing profits; and
WHEREAS, Kodiak Island Borough Code does not provide a mechanism for severance tax
exemption for non -profits; and
NOW, THEREFORE, BE IT ORDAINED BY THE ASSEMBLY OF THE KODIAK ISLAND
BOROUGH THAT:
Section 1: This ordinance is of a general and permanent nature and shall become a part of the
Kodiak Island Borough Code of Ordinances.
Section 2: That section 3.45.030 Exemption. of the Kodiak Island Borough Code of Ordinances
is amended by adding a new section to read:
3.45.030 Exemptions.
This exemption does not apply to KIBC 3.45.020(D). ford. 91-03 42 1991. Formerly
43.26.0301.
A. If the annual gross production value of severed or harvested natural resources within the
borough does not equal or exceed the amount of $5,000 annually, the severer or harvester shall
be exempt from taxation under this chapter. This exemption dGeS Rot apply to K19C a.AEj.:M(D).
B. Severance Taxes may be waived for eligible 501c (3) organizations upon application to
the Borough Manager. This waiver is available for non-profit fundraising activities which
are related to the use of resources extracted from Kodiak Island Borough Lands.
Kodiak Island Borough, Alaska
Deletion — Red, Strikeout
Insertion — Bold, Blue, Underlined
Ordinance No. FY2019-04
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C. The total of exempted severance tax shall not exceed $500.00
Effective Date: This ordinance takes effect upon adoption. (Note: KIBC 2.30.070 states an
ordinance takes effect upon adoption or at a later date specified in the ordinance.)
ADOPTED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH
THIS DAY OF , 201X.
KODIAK ISLAND BOROUGH ATTEST:
Daniel A. Rohrer, Mayor Nova M. Javier, MMC, lark
VOTES:
UNANIMOUS VOTE:
Ayes: Crow, Kavanaugh, Schroeder, Skinner, Smiley, Van Daele
Kodiak Island Borough, Alaska
Deletion — Red, Strikeout
Insertion — Bold, Blue, Underlined
Ordinance No. FY2019-04
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