FY2021-27 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 Rate1
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Introduced by: Borough Manger Through The Mayor
Drafted by: Finance Director
Removed During Packet Review On 01/14/2021
KODIAK ISLAND BOROUGH
ORDINANCE NO. FY2021-27
AN ORDINANCE OF THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH AMEN]blk4G
KODIAK ISLAND BOROUGH CODE OF ORDINANCES TITLE 3 REVENUE AND CE
CHAPTER 3.45 SEVERANCE TAX SECTION 3.45.020 RESOURCES SUBJE TAX
SETTING AN EXCISE TAX RATE ��`
WHEREAS, severance tax, a form of excise tax, was established to levy ^a\N xbn all resources
extracted from Kodiak Island Borough lands and waters; and O`
WHEREAS, the current severance tax rate is the sum of all are&mill levies; and
WHEREAS, the recent voter approved tax revenue cap mchange the area -wide mill rates
annually; and NGJ
WHEREAS, the Kodiak Island Borough seeks t ain a stable severance tax rate for the
Borough and for entities subject to the severancd
NOW, THEREFORE, BE IT ORDAINEHE ASSEMBLY OF THE KODIAK ISLAND
BOROUGH that: �G
Section 1: This ordinance is o1Qe manent nature and shall become a part of the Kodiak
Island Borough
95,
le of Ordinances.
Section 2: That sect�.45``.00020 of the Kodiak Island Borough Code of Ordinances is
amen�fe� read as follows:
3.45.020 Resou&hPctsubject to tax.
There is levi 54we borough, on any severer or harvester of certain natural resources, an excise
tax, denorrroted as a severance tax. The tax rate shall be the sum Gf all aFea wide mill levies
0.0107 ch will be multiplied by the gross production value for the calendar quarter resulting
fr � ollowing 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;
C. Gravel mining, quarrying, or producing for sale, profit, or commercial use, any sand,
gravel, rock or coal; and
Kodiak Island Borough, Alaska
Deletion — Red c u
Insertion — Bold, Blue, Underlined
Ordinance No. FY2021-27
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D. Harvesting of any raw finfish, shellfish, mollusks and other commercial products of the
sea.
Effective Date: This ordinance takes effect at midnight on March 31, 2021.
ADOPTED BY THJE ASSEMBLY OF THE KODIA LAND BOROUGH
THIS DAY OF Pr(Ut►h; 2021.
KODIAK ISLAND B UGH
William Roberts, ayor
VOTES:
Ayes:
Noes:
JQ'
NO
Kodiak Island Borough, Alaska
Deletion — Red c«a Str;kewi
Insertion — Bold, Blue, Underlined
Ordinance No. FY2021-27
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Version 1