Loading...
FY2019-04 Revising Kodiak Island Borough Title 3.45 Severance Tax1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 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 Page 1 of 2 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 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 Page 2 of 2