1996-21 Amending Chapter 3.24 Personal Property TaxKODIAK ISLAND BOROUGH
ORDINANCE NO. 96 -21
Introduced by: Mayor Selby
Requested by: Assessor
Drafted by: Assessor
Introduced: 11/26/96
Public Hearing: 12/05/96
Adopted: 12/05/96
AN ORDINANCE AMENDING CHAPTER 3.24 PERSONAL PROPERTY TAX
OF THE KODIAK ISLAND BOROUGH CODE OF ORDINANCES
TO REFLECT AMENDMENTS TO BUSINESS INVENTORIES EXEMPTIONS
WHEREAS, there is a significant difference between inventory held for sale and
equipment that is leased or rented out to produce income; and
WHEREAS, this difference results in an unfair competition advantage for a business
that leases its equipment as opposed to a business that owns its equipment; and
WHEREAS, the concept of the tax was to tax income - producing equipment
regardless of ownership;
NOW, THEREFORE, BE IT ORDAINED BY THE ASSEMBLY OF THE KODIAK ISLAND
BOROUGH THAT:
Section 1: This ordinance is a general and permanent nature and shall become a
part of the Kodiak Island Borough Code of Ordinances.
Section 2: Title 3 Revenue and Finance Chapter 3.24 Personal Property Tax is
hereby amended as follows:
3.24.060 Business inventories exempt.
A. Pursuant to AS 29.45.050(b), the inventories of businesses possessing a valid
business license from the state of Alaska are exempt from the tax imposed by this chapter.
B. As used herein, "inventories" mean personal property in the hands of a retail or
wholesale merchant held for sale[ Hease or or personal property held in the form of raw
materials or component parts for the manufacture or production of goods. (Ord. 83 -53 -0 §1,
1983).
ADOPTED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH
THIS FIFTH DAY OF DECEMBER, 1996
ATTEST:
donna F. Smith, CMC /AAE, Borough Clerk
Kodiak Island Borough, Alaska
KODIAK ISLAND BOROUGH
� �Lfilii.
Robin Heinrichs, Presiding Officer
Ordinance No. 96 -21
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