FY2022-12 Amending 3.35.030 Required Tax Property ExemptionsL
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Introduced by: Assessing Department thru the Mayor
Drafted by: Assessing Director
Introduced on: 03/03/2022
Public Hearing Date:03/17/2022
Adopted on:03/17/2022
KODIAK ISLAND BOROUGH
ORDINANCE NO. FY2022-12
AN ORDINANCE OF THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH AMENDING
KODIAK ISLAND BOROUGH CODE SECTION 3.35.030(A)(3) REGARDING REQUIRED TAX
PROPERTY EXEMPTIONS
WHEREAS, The current language in Kodiak Island Borough Code 3.35.030(A)(3) includes
provisions which do not reflect the most recent amendments to the required exemptions in AS
29.45.030, specifically it does not include language revisions in AS 29.45.030(b) (defining
property used exclusively for religious purposes) and AS 29.45.030(c) (addressing otherwise
exempt property from which income is derived); and
WHEREAS, The Assembly desires to bring the incorporate the amendments to AS
29.45.030(b) and AS 29.45.030(c) into KIBC 3.35.030(A)(3).
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 3.35.030(A)(3) of the Kodiak Island Borough Code of Ordinances is
amended to read as follows:
3.35.030 Real and personal property exempted from taxation.
A. The following described properties shall be exempt from any and all taxation otherwise
imposed under the foregoing sections:
3. All property used exclusively for nonprofit religious, charitable, cemetery, hospital, or
educational purposes is exempt from taxation for the calendar year in
which application is timely filed if the assessor determines that the application demonstrates the
property qualifies for exemption as provided by AS 29.49.030. Property used exclusively for
religious purposes means that property described in AS 29.45.030(b). Property described in
this section from which income is derived is exempt only if that income is solely from the
use of the property by nonprofit religious, charitable, hospital, or educational groups. If
used by nonprofit educational groups, the property is exempt only if used exclusively for
Kodiak Island Borough, Alaska
Beleti R Redd StTikeewt
Insertion - Blue, Bold, Underlined
Ordinance No. FY2022-12
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classroom space. '
exe+ptUnimproved or vacant real property of any such organization which is not currently used
for religious, hospital, educational, cemetery, or charitable purposes shall be deemed to be
property held or used for profit, unless by deed restriction or otherwise the real property has been
effectually dedicated to future use for religious, educational, or charitable purposes only and
cannot be sold or used for any other purposes. Any vacant land which initially qualifies for an
exemption under this section, and for which an application is filed, but is not placed in use within
two years of January 1st of the first tax year, shall be subject to taxation in each tax year,
retroactive to the first tax year for which the exemption was granted.
a. To qualify for an exemption under subsection (A)(3) of this section, the applicant organization
shall provide the following information to the assessor or designee to support a determination of
exempt status:
i. The articles of incorporation.
ii. Documentation to support the organization's not-for-profit status (e.g., IRS Section
501(c)(3) determination letter, or equivalent).
iii. A description of the property's use, demonstrating its consistency with the requested
exemption.
iv. Contracts of any type that describe or memorialize the use of the property by a person or entity(�
other than the applicant organization. I i
v. A description of any remuneration received by the applicant organization including:
(A) Any property, or portion of property, from which rentals or income are derived.
(B) Actual operating expenses, excluding debt service or depreciation.
(C) Where property is leased by the organization to other entities, financial statements for the
past tax year, including income and expense reports, and a description of any debt service or
depreciation reported in the financial statements for the property.
vi. For property used for an educational purpose, a description of course curriculum and
classroom space.
vii. For property used as a religious residence, a description of the resident's ordination,
commission, or license (according to the standards of the religious organization), and proof of the
resident's employment by the religious organization as its spiritual leader.
b. The borough assessor may request additional information prior to making a determination, as
reasonably necessary, to determine the exempt status of a property in accordance with borough
code and regulations and state law.
Kodiak Island Borough, Alaska Ordinance No. FY2022-12
Delet*en [led Strokeo t Page 2 of 3
Insertion - Blue. Bold. Underlined
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4. Any vacant land which initially qualifies for an exemption under this section, but which is not
placed in use within two years from January 1st of the first tax year, for which an application is
filed, shall be subject to taxation in each tax year, retroactive to the first tax year for which the
exemption was granted.
a. No single organization shall receive more than two exempt vacant parcels, and the exemption
for any one parcel shall not exceed the average assessed value of a single, similarly zoned
property, as determined by the assessor on an annual basis.
Effective Date: This ordinance takes effect at midnight on the day of adoption of this ordinance.
ADOPTED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH
THIS SEVENTEETH DAY OF MARCH, 2022.
KODIAK ISLAND BOROUGH
ATTEST:
illiam Robe s, Mayor
Lina Cruz, Acting orough Clerk
VOTES:
Ayes: Griffin, Smiley, Williams, and Arndt
Noes:
Kodiak Island Borough, Alaska
Deleti R Red, StTikeeut
Insertion - Blue, Bold, Underlined
Ordinance No. FY2022-12
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