FY2019-14 Amending KIBC Ord. Title 3 Revenue and Finance Chapter 3.45 Section 3.45.0201
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Introduced by: Borough Manager
Drafted by: Finance Director
Introduced on: 04/18/2019
Public Hearing Date: 05/16/2019
Failed on: 05/16/2019
KODIAK ISLAND BOROUGH
ORDINANCE NO. FY2019-14
AN ORDINANCE OF THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH AMENDING
KODIAK ISLAND BOROUGH CODE OF ORDINANCES TITLE 3 REVENUE AND FINANCE
CHAPTER 3.45 SEVERANCE TAX SECTION 3.45.020 RESOURCES SUBJECT TO TAX
SETTING AN EXCISE TAX RATE
WHEREAS, severance tax, a form of excise tax, was established to levy a tax on all resources
extracted from Kodiak Island Borough lands and waters; and
WHEREAS, the current severance tax rate is the sum of all area -wide mill levies; and
WHEREAS, the recent voter approved tax revenue cap may change the area -wide mill rates
annually; and
WHEREAS, the Kodiak Island Borough seeks to maintain a stable severance tax rate for the
Borough and for entities subject to the severance tax.
NOW, THEREFORE, BE IT ORDAINED BY THE ASSEMBLY OF THE KODIAK ISLAND
BOROUGH THAT:
Section 1: This ordinance is of permanent nature and shall become a part of the Kodiak Island
Borough Code of Ordinances.
Section 2: That section 3.45.020 of the Kodiak Island Borough Code of Ordinances is amended
to read as follows:
3.45.020 Resources subject to tax.
There is levied in the borough, on any severer or harvester of certain natural resources, an excise
tax, denominated as a severance tax. The tax rate shall be the s rn of all area • de ^,'" levies
0.01075 which will be multiplied by the gross production value for the calendar quarter resulting
from the following activities:
A. Mining, extracting, harvesting, removing or producing for sale, profit, or commercial
use, any copper, gold, silver, zinc, lead, molybdenum, or other metallic mineral
product, compound, or combination of mineral products;
B. Felling, removing, or producing for sale, profit, or commercial use, timber or any
product of the forest;
Kodiak Island Borough, Alaska
Deletion — Red, Strikeout
Insertion — Bold, Blue, Underlined
Ordinance No. FY2019-14
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C. Gravel mining, quarrying, or producing for sale, profit, or commercial use, any sand,
gravel, rock or coal; and
D.; Harvesting of any raw finfish, shellfish, mollusks and other commercial products of the
sea.
Any severer or harvester of certain natural resources who is a property owner of a
residential dwelling will receive a property tax credit on a single residential dwelling equal
to, but not more than, the property tax on such dwelling. The tax credit shall not be more
than the severance taxes paid.
Effective Date: This ordinance takes effect at midnight on June 30, 2019.
ADOPTED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH
THIS DAY OF 2019.
KODIAK ISLAND BOROUGH
Daniel A. Rohrer, Mayor
VOTES:
Ayes:
Noes:
Kodiak Island Borough, Alaska
Deletion — Red, Strikeout
Insertion — Bold, Blue, Underlined
ATTEST:
Tara Welinsky, Clerk
Ordinance No. FY2019-14
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