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1990-45 Placing the Question of the Adoption of a Sales Tax on the October 2 Regular Election Ballot.By: Mary Monroe and Tom Merriman Introduced: 08/21/90 Public Hearing: 08/21/90 Adopted: 08/21/90 KODIAK ISLAND BOROUGH RESOLUTION NO. 90-45 A RESOLUTION PLACING THE QUESTION OF THE ADOPTION OF A SALES TAX ON THE OCTOBER 2 REGULAR ELECTION BALLOT WHEREAS, the Kodiak Island Borough Assembly has become increasingly concerned about the borough tax system which is built entirely on the assessment of real and personal property tax; and WHEREAS, the decline of state revenue dictates that revenues collected from local taxation must increase; and WHEREAS, the Assembly desires to implement tax measures which will generate the additional revenue needed to finance education in a way that spreads the tax burden across the entire populace instead of just on the property owners; and WHEREAS, Alaska Statute 29.45.050 provides that a borough may levy and collect a sales tax not exceeding six percent on sales, rents, and on services provided in the borough; NOW, THEREFORE, BE IT RESOLVED by the Kodiak Island Borough Assembly that the following proposition shall be submitted to the qualified voters of the Kodiak Island Borough at the October 2, 1990, Regular Election: It is the intent of the Kodiak Island Borough Assembly and Mayor that the Kodiak Island Borough adopt sales tax powers as follows: The sales tax amount shall be one percent (1%) borough wide. Within the city limits of any city within the borough the tax will be in addition to any sales tax imposed by that city. This sales tax should generate approximately $1,000,000 0£ revenue. Resolution No. 90-45 Page 1 of 2 The Kodiak Island Borough Assembly is empowered to enact such ordinances as necessary to implement and administer the collection of the tax, with the restriction that the tax amount may not be increased without further voter approval. Due to state funding cuts and inflation, the Kodiak Island Borough School District's budget was about $900,000 short for FY 90-91 which was covered with a one- time use of fund balance funds. Funds generated from a 1% sales tax will be appropriated for school operation in addition to the 5.26 mills of property tax levy appropriated for the previous year. This will result in approximately a level funding for the school district for future years. Shall the Kodiak Island Borough adopt sales tax powers and levy a sales tax equal to one percent (1%) of sales, rents and on services provided in the borough to be used for the operation of the Kodiak Island Borough School District? PASSED AND APPROVED THIS 21st DAY OF AUGUST, 1990. ATTEST: IBoro Clerk KODIAK ISLAND BOROUGH Brfkough Mayor x)esiding Officer Resolution No. 90-45 Page 2 of 2