HomeMy WebLinkAboutOrd2011-006 Sponsored by: Administration
Introduction: November 14, 2011
Public Hearing: November 28, 2011
Postponed to: December 12, 2011
Enactment: December 12, 2011
CITY OF SEWARD, ALASKA
ORDINANCE 2011 -006
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SEWARD,
ALASKA, REVISING SEWARD CITY CODE SECTION 5.45.015
(HOTEL /MOTEL ROOM TAX — LEVY OF TAX), ELIMINATING ALL
EXEMPTIONS FROM THE HOTEL /MOTEL ROOM TAX, EFFECTIVE
JANUARY 1, 2012
WHEREAS, Initiative Ordinance No. 95 -01 -INIT was placed before the voters at the
regular election in October, 1995, and was approved by a majority of the voters voting on the
question, thereby establishing a 4% Hotel /Motel Room tax, and creating Seward City Code
5.45.015, which provides the authority for the imposition of a hotel /motel room tax; and
WHEREAS, SCC 5.45.015 (b) currently provides for exemptions from payment of
hotel /motel room tax on government, non - profit, and church organizations; and
ire WHEREAS, the community of Seward does not receive sales tax or property tax
revenues from government, non - profit and church organizations doing business within the
community, and does provide substantial services which benefit these organizations; and
WHEREAS, these organizations will continue to be exempt from real property taxes in
Seward; and
WHEREAS, the United States, the State of Alaska, and instrumentalities and political
subdivisions of the State will continue to be exempt from the hotel /motel rent tax to the extent
and in the manner required by State and federal law; and
WHEREAS, it is the intent of the Seward City Council that churches and nonprofit
organizations, who are exempt from real property taxes, do not receive an exemption from the
hotel /motel room tax, in order to reduce the subsidies currently afforded organizations exempt
from income taxation and to allocate a portion of the cost of City services to organizations
enjoying the benefits of those services.
NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF SEWARD,
ALASKA, HEREBY ORDAINS that:
Section 1. Seward City Code Section 5.45.015 — Levy of Tax is amended as follows:
Stfikeeet = Delete Bold = New
CITY OF SEWARD, ALASKA
ORDINANCE 2011 -006
.r.
(a) There is hereby levied a tax on all hotel /motel rent not exempt from taxation
.. .. equal to four percent of the
hotel /motel rent.
(b) Rent paid by the United States or the State is exempt from the tax levied
by subsection (a) of this section insofar as the United States and the state
are immune from taxation.The following rent is exempt from the tax levied
by subsection (a) of this scction:
(1) Rent paid by the United States, the state, or any instrumentality or
(2) Rent paid by an organization recognized by the United States Internal
Code, provided that the organization provides proof of such
recognition to the city manager.
(3) Rent paid by a church organized as a nonprofit corporation under the
Section 2. The effective date of the elimination of exemptions from the Hotel /Motel
Room Tax is January 1, 2012.
Section 3. This ordinance shall take effect 10 days following its enactment.
ENACTED by the City Council of the City of Seward, Alaska, this 12 day of ..J
December, 2011.
THE CITY OF SEWARD, ALASKA
David Seaward, a or
AYES: Valdatta, Bardarson, Keil, Shafer, Casagranda, Terry
NOES: Seaward
ABSENT: None
ABSTAIN: None
ATTEST:
fk m na K inney, CMC . Clerk`- A, •
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