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FY2011-16 Amending KIBC Severance Tax Introduced by: Borough Manager 1 Requested by: Finance Director 2 Drafted by: Finance Director Introduced: 05/05/2011 3 Public Hearing: 05/19/2011 4 Postponed: 06/02/2011 5 Amended: 06/02/2011 6 Adopted: 06/02/2011 7 KODIAK ISLAND BOROUGH 8 ORDINANCE NO. FY2011 -16 9 10 AN ORDINANCE OF THE KODIAK ISLAND BOROUGH ASSEMBLY 11 AMENDING KODIAK ISLAND BOROUGH CODE OF ORDINANCES 12 TITLE 3 REVENUE AND FINANCE CHAPTER 3.45 SEVERANCE TAX 13 SECTION 3.45.020 RESOURCES SUBJECT TO TAX 14 AND SECTION 3.45.010 DEFINITIONS 15 16 WHEREAS, instead of spreading severance tax revenues across all area -wide funds that 17 levy a property tax; all proceeds will go to the general fund; and 18 19 WHEREAS, under the current regulations, the severance tax rate would have to be 20 increased any time an area -wide service would be started if it was going to be financed with 21 property taxes; and 22 23 WHEREAS, with the current KIB accounting system, allocating severance taxes to more 24 than one fund would be extremely difficult; and 25 26 WHEREAS, under the current regulations, the severance tax rate is not set for the third 27 quarter (July 1) of each year until the first 10 days of June; 28 29 NOW, THEREFORE, BE IT ORDAINED BY THE ASSEMBLY OF THE KODIAK ISLAND 30 BOROUGH THAT: 31 32 Section 1: This ordinance is of a general and permanent nature and shall become a part of 33 the Kodiak Island Borough Code of Ordinances. 34 35 Section 2: Kodiak Island Borough Code of Ordinances Title 3 Revenue and Finance 36 Chapter 45 Severance Tax Section 020 Resources Subject To Tax is hereby 37 amended as follows: 38 39 3.45.020 Resources subject to tax. 40 There is levied in the borough, on any severer or harvester of certain natural resources, an 41 excise tax, denominated as a severance tax. The tax rate shall be - - to _. • ••• 42 levy as dotormincd annually by tho assembly the sum of all area - wide mill levies which 43 will be multiplied by the gross production value for the calendar quarter resulting from the 44 following activities: Kodiak Island Borough Ordinance No. FY2011 -16 Page 1 of 2 45 A. Mining, extracting, harvesting, removing or producing for sale, profit, or commercial 46 use, any copper, gold, silver, zinc, lead, molybdenum, or other metallic mineral 47 product, compound, or combination of mineral products; 48 B. Felling, removing, or producing for sale, profit, or commercial use, timber or any 49 product of the forest; 50 C. Gravel mining, quarrying, or producing for sale, profit, or commercial use, any sand, 51 gravel, rock or coal; and 52 D. Harvesting of any raw finfish, shellfish, mollusks and other commercial products of 53 the sea. 54 55 Section 3: All severance tax proceeds will be deposited into the General Fund. 56 57 Section 4: This ordinance shall become effective on July 1, 2011 58 59 ADOPTED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH 60 THIS SECOND DAY OF JUNE, 2011 61 62 KODIAK ISLAND BOROUGH 63 64 65 66 d . - 67 ATTEST: Jero - M. Selby, Borough May_. 68 r _ 69 71 70 • ' 72 Nova M. Javier, MC, Borough Clerk 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 Clerk's note: There was a proposal to amend KIBC 3.45.010(C) by removing the words 91 "beginning July 1st after the date of the setting of the mill levy" when the ordinance was 92 introduced. After public hearing, they were put back in as an amendment. Kodiak Island Borough Ordinance No. FY2011 -16 Page 2 of 2