1980-26 Suspending Personal Property Taxes Levied by the K.I.B. Within the Boundaries of the City of Kodiak, Conditioned Upon Other payments From the City of Kodiak.) 0 0 ,1 > , 7 1
KODIAK ISLAND BOROUGH
ORDINANCE NO. 80- 26 -0
AN ORDINANCE SUSPENDING PERSONAL PROPERTY TAXES LEVIED
BY THE KODIAK ISLAND BOROUGH WITHIN THE BOUNDARIES OF THE
CITY OF KODIAK, CONDITIONED UPON OTHER PAYMENTS ROM THE
CITY OF KODIAK.
WHEREAS, the City of Kodiak
a home -. le first -class
city, has exempted all
personal propert within its boundaries
from personal property taxes; and
WHEREAS, AS 29.53.025(c) autho• zes a home -rule city to
grant exemptions or exclude prope y from borough taxes if
the exemptions or exclusions hav been adopted as to city
taxes, provided that the city - •propriate to the borough
sufficient money to equal r.v;nues lost by the borough
because of the exemptions o exclusions; and
WHEREAS, the amount /fficient under AS 29.53. 2
to equal revenues lost b' ption has Borough because of the City's
)
personal property tax ex as been difficult to determine
and has resulted in d greement between the City and the
Borough regarding they orrectness of the amount determined
by the Assembly; and
WHEREAS, th C
sales within its
that 20% of th
as a result of
exemption; a
WHEREAS
Public inte
y of Kodiak levies a 5% sales tax on
ndaries and it has been generally determined
ax closely approximates the revenues lost
e City of Kodiak's personal property tax
it is the policy of the Borough and in the
o establish a legal framework, satisfactory
to both the City and the Borough, which will permit the
exemptidn of personal property within the City boundaries
,from.9orough property taxes under terms and conditions that
,will avoid substantial expenses for appraisers, auditors and
legal counsel to determine the amount of lost revenue on an
annual basis; and
WHEREAS, a suspension of the borough personal property
taxes within the boundaries of the City under terms which
will provide for payment of a percentage of sales tax r enues
collected by the City would ensure comparable reven
sources to the Borough and promote intergovernme al cooperation;
and
WHEREAS, the Borough is authorized by 29.53.025(c)(1)
to adjust its property tax structure in w.•le or in part to
the property tax structure of a city wi in it, including
but not limited to, excluding persona property from taxation;
and
WHEREAS, a suspension of the application of the taxing
provisions of Chapter 3.24 of t - Kodiak Island Borough
Code, insofar as those provisions might otherwise relate to
personal property within th • oundaries of the City of
Kodiak would conform the
the property tax struct
maximum flexibility for
those taxes if an alt
is terminated;
NOW, THEREFORE the Kodiak Island Borough Assembly
ordains:
Section 1. apter 3.24 of the Kodiak Island Borough
Code is amende••y adding a new section 3.24.015 to read:
3.24 %15 Suspension of Tax Within City Boundaries
Th , a pplication of this chapter to personal
property situated for tax purposes within the
bo daries of the City of Kodiak shall be sus -
p and of no force and effect for so long as
here remains in effect an agreement between the
City and Borough requiring the City to pay to the
Borough a sum of money equal to a percentage of
the sales taxes collected by the City which are
estimated to equal the revenues lost to the
ough property tax structure to
of the City and would provide the
einstituting the collection of
ate source of revenue from the City
1 'l I -, I 'I I `)
1980.
ATTEST:
Borough as a result of the exemption of personal
property in the City from Borough taxes. ��
Section 2. This ordinance is effective imm$iately
upon passage and approval.
PASSED AND APPROVED this day of
Borough Clerk
MAYOR
-3-
1 0 1 2 1 1 1 Z? n
THIS AGREEMENT, made and executed on the day and year
hereinafter last written, by and between the DIAK ISLAND
BOROUGH, a second class borough, herein re erred to as "Borough,"
and the CITY OF KODIAK, a home rule city; herein referred to as
"City."
1. City Reimbursement for Lost Revenues. The City
shall pay to the Borough during each year that this agreement
is in effect a sum equal to TWENTY PERCENT (20 %) of the
revenues received by the City from the application of the 5%
sales tax currently in effect. If the sales tax levied is
increased or decreased during the term of this agreement,
the proportion of the rec� to be distributed to the
Borough shall be adjustedfso they equal at all times the
h
amount that would be r= ' by the City on a 1% sales tax.
2. Payment. Paym to the Borough under this agreement
shall be made on a qu -� erly basis, with each payment to be
made within forty -fiv:/ (45) days after the due date for
filing with the City \ -•f quarterly sales tax returns and
remittance of sale - -ax proceeds. Each payment to the Borough
If
shall be based upoJ the sales tax revenues received by the
City during the • \= eding tax quarter.
AGREEMENT
3. Term of,,iereement. This agreement shall be effective
for a term of folI N (4) years, commencing on January 1, 1981,
or on the effec ve date of an ordinance adopted by the
Borough which = spends the application of borough property
taxes to pers• al property located within the boundaries of
the City, wh chever occurs later.
4. -rly Termination. (a) This agreement shall
terminate upon the effective date of a repeal or rescission
of the ordinance referred to in Paragraph 3, above, which
,suspends the application of property taxes to personal
property located within the boundaries of the City.
(b) This agreement may be terminated by either party
upon written notice to the other party delivered between
January 1 and July 1 of any year. Termination by wr en
notice shall not be effective until payment by
all amounts due under this agreement for the
in which notice to terminate is delivered.
5. Adjusted Payments. If an ordin
the Borough during the term of this ag
legislative action or voter initiati
optional taxation of vessels based
AS 29.53.025(b), the amount payab
graph 1 shall be adjusted to TEN
received by the City in the ap
or a sum equivalent to rece
tax.
6. Enforcement of :r..ert Tax Ordinance. Upon delivery
of a notice of terminatio ', the ordinance suspending the
es on personal property within the
imposition of property
City boundaries may
may assess and levy
within the City of
DATED this
Alaska.
be
nce is adopted by
eement, either by
, which provides for
n tonnage, pursuant to
e by the City under Para -
PERCENT (10 %) of the revenues
ication of its 5% sales tax,
s by the City from a 0.5% sales
I'
epealed or rescinded and the Borough
acitvalorem taxes against personal property
iak for the succeeding calendar year.
day of , 1980, at Kodiak,
CITY OF KODIAK
By
By
-2-
City Manager
Borough Manager
KODIAK ISLAND BOROUGH
e City of
alendar year