FY2011-16 Amending KIBC Severance Tax Introduced by: Borough Manager
1 Requested by: Finance Director
2 Drafted by: Finance Director
Introduced: 05/05/2011
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Public Hearing: 05/19/2011
4 Postponed: 06/02/2011
5 Amended: 06/02/2011
6 Adopted: 06/02/2011
7 KODIAK ISLAND BOROUGH
8 ORDINANCE NO. FY2011 -16
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10 AN ORDINANCE OF THE KODIAK ISLAND BOROUGH ASSEMBLY
11 AMENDING KODIAK ISLAND BOROUGH CODE OF ORDINANCES
12 TITLE 3 REVENUE AND FINANCE CHAPTER 3.45 SEVERANCE TAX
13 SECTION 3.45.020 RESOURCES SUBJECT TO TAX
14 AND SECTION 3.45.010 DEFINITIONS
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16 WHEREAS, instead of spreading severance tax revenues across all area -wide funds that
17 levy a property tax; all proceeds will go to the general fund; and
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19 WHEREAS, under the current regulations, the severance tax rate would have to be
20 increased any time an area -wide service would be started if it was going to be financed with
21 property taxes; and
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23 WHEREAS, with the current KIB accounting system, allocating severance taxes to more
24 than one fund would be extremely difficult; and
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26 WHEREAS, under the current regulations, the severance tax rate is not set for the third
27 quarter (July 1) of each year until the first 10 days of June;
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29 NOW, THEREFORE, BE IT ORDAINED BY THE ASSEMBLY OF THE KODIAK ISLAND
30 BOROUGH THAT:
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32 Section 1: This ordinance is of a general and permanent nature and shall become a part of
33 the Kodiak Island Borough Code of Ordinances.
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35 Section 2: Kodiak Island Borough Code of Ordinances Title 3 Revenue and Finance
36 Chapter 45 Severance Tax Section 020 Resources Subject To Tax is hereby
37 amended as follows:
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39 3.45.020 Resources subject to tax.
40 There is levied in the borough, on any severer or harvester of certain natural resources, an
41 excise tax, denominated as a severance tax. The tax rate shall be - - to _. • •••
42 levy as dotormincd annually by tho assembly the sum of all area - wide mill levies which
43 will be multiplied by the gross production value for the calendar quarter resulting from the
44 following activities:
Kodiak Island Borough Ordinance No. FY2011 -16
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45 A. Mining, extracting, harvesting, removing or producing for sale, profit, or commercial
46 use, any copper, gold, silver, zinc, lead, molybdenum, or other metallic mineral
47 product, compound, or combination of mineral products;
48 B. Felling, removing, or producing for sale, profit, or commercial use, timber or any
49 product of the forest;
50 C. Gravel mining, quarrying, or producing for sale, profit, or commercial use, any sand,
51 gravel, rock or coal; and
52 D. Harvesting of any raw finfish, shellfish, mollusks and other commercial products of
53 the sea.
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55 Section 3: All severance tax proceeds will be deposited into the General Fund.
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57 Section 4: This ordinance shall become effective on July 1, 2011
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59 ADOPTED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH
60 THIS SECOND DAY OF JUNE, 2011
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62 KODIAK ISLAND BOROUGH
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66 d . -
67 ATTEST: Jero - M. Selby, Borough May_.
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71 70 • '
72 Nova M. Javier, MC, Borough Clerk
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90 Clerk's note: There was a proposal to amend KIBC 3.45.010(C) by removing the words
91 "beginning July 1st after the date of the setting of the mill levy" when the ordinance was
92 introduced. After public hearing, they were put back in as an amendment.
Kodiak Island Borough Ordinance No. FY2011 -16
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