HomeMy WebLinkAboutOrd2002-013
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Sponsored by: Janke
Introduction: December 9, 2002
Public Hearing: December 18,2002
Enactment: December 18, 2002
CITY OF SEWARD, ALASKA
ORDINANCE 2002-13
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SEWARD,
ALASKA, INCREASING THE CITY SALES TAX FROM THREE PERCENT
TO FOUR PERCENT, BEGINNING APRIL 1, 2003
WHEREAS, the City has experienced a significant reduction in State funding as a result of
legislative cuts to the State Revenue Sharing and Safe Communities programs, with such funding
sources equating to 3.5 mills of property tax in 1991 and only 0.79 mills in 2001, representing a
decline of65% or an annual loss of revenue of$314,681 compared with ten years ago; and
WHEREAS, the Administration has taken steps to reduce City expenditures while
maintaining those services deemed vital to the community; and
WHEREAS, the City has experienced significant increases in annual fixed costs such as
insurance, which can no longer be absorbed solely by growth in sales tax revenues based on
economic growth; and
WHEREAS, without developing additional revenues sources, it will be necessary to reduce
or eliminate certain vital services to the community and continue to defer maintenance and repairs,
and the City will not have sufficient funds for capital infrastructure; and
WHEREAS, an increase in the sales tax will effectively place a portion ofthe burden ofthe
cost of public services on those individuals who benefit from City services yet are only visiting
Seward, or live outside the boundaries of the City of Seward.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SEWARD,
ALASKA, HEREBY ORDAINS that:
Section 1. Section 5.35.035, Imposition of sales tax, subsection 5.35.035(A), is hereby
amended to read as follows:
A. There is levied and imposed, in addition to all other taxes and fees of every kind now
imposed by law, a consumer's sales tax on all retail sales oftangible personal property, the lease or
rental oftangible personal property or real property, and the purchase oftaxable services, the same to
be collected in the amount of three percent of the gross proceeds of each taxable sale or taxable
service. Beginning April 1, 2003, the sales tax amount to be collected shall be four percent of the
gross proceeds of each taxable sale or taxable service.
CITY OF SEWARD, ALASKA
ORDINANCE 2002-13
Section 2. Seward City Code Section 5.35.050, Computation of Tax, which includes the
taxable scale, is hereby repealed and deleted in its entirety, as follows (Strikeout - delete):
5.35.050 Computation of tax.
The amount ofihe tax to be added to the sales price or charges shall be aetormiflOd in
accordance ','lith ilie followiNg schooulc:
Taxable Scale
$0.16 and under
0.17 thrOl:lgh 0.49
0.50 throagh 0.83
0.84 through 1.16
1.17 through 1.49
1.50 through 1.83
1.84 through 2.16
2.17 and over
Tax:
None
.01
.02
.03
.04
.05
.06
continue sll:ffie table
Section 3. Section 5.35.055 is hereby amended to read as follows:
5.35.055 Computation - addition of tax to total retail price - tax schedule.
A. The amount of the sales tax to be added to the sales price, charge or rental shall be three
(3) percent of the sale price, charge or rental rounded off to the nearest cent by eliminating any
fraction of one-half cent or less and by increasing any fraction over one-half cent to the next highest
cent. Each seller shall be furnished the schedule of tax payable on each taxable amount from one
cent ($0.01) to one hundred dollars ($100.00). Anyone sale of items separately priced shall be taxed
upon the aggregate amount. Beginning April 1 ,2003, the amount ofthe sales tax to be added to the
sale price, charge orrental shall be increased by one (1) percent to four (4) percent ofthe sale price,
charge or rental.
B. The revenue from a coin-operated machine shall be treated in gross on a monthly basis,
without reference to the amount paid or placed on a particular transaction.
Section 4. This Ordinance shall take effect thirty (30) days following its enactment.
ENACTED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, this
18th day of December 18,2002.
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CITY OF SEWARD, ALASKA
ORDINANCE 2002-13
AYES:
NOES:
ABSENT:
ABSTAIN:
ATTEST:
THE CITY OF SEWARD, ALASKA
(l, (L~~-~ I
Edgar Blatchford, Mayor
Shafer, Dunham, Branson, Clark, Blatchford
Valdatta, Off
None
None
(City Seal)
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