HomeMy WebLinkAbout08122018 City Council Laydown - KPB Ord2015-15 iqma-
Introduced by: Carpenter
Date: 07/02/19
Hearing: 08/06/19
Action: Introduced and Set for
Public Hearing
Vote: 9 Yes,0 No,0 Absent
Date: 08/06/19
Action:
Vote:
KENAI PENINSULA BOROUGH
ORDINANCE 2019-15
AN ORDINANCE AMENDING KPB 5.18.430 TO INCREASE THE MAXIMUM
AMOUNT OF A SALE SUBJECT TO THE BOROUGH SALES TAX TO $1,000,
EXCEPT FOR RESIDENTIAL RENTALS, SUBJECT TO VOTER APPROVAL
WHEREAS, due to the continuing uncertainty about state and local revenues,the decline in state
assistance to municipalities, the increasing loss in property tax revenues to the
borough from exemptions on real property, and increasing reliance on borough
funding for the school district, the borough must take steps to maintain its
unrestricted fund balance into the future within financially prudent and responsible
parameters to enable it to fund the services and public education programs as
desired by borough residents; and
WHEREAS, KPB 5.18.430(A) currently provides for a maximum taxable amount of $500,
meaning the borough's sales tax is only applied to the first $500 of each separate
sale, rent, or service transaction unless otherwise provided; and
WHEREAS, Ordinance No. 9a, enacted by the assembly in 1965, set the maximum taxable
amount at$500 and this sum has never been adjusted for inflation or otherwise; and
WHEREAS, the value of$500 in 1965 was $3,195 in 2018 according to the Alaska Department
of Labor Anchorage Consumer Price Index inflation; and
WHEREAS, this increase in the maximum taxable amount would disproportionately affect
tenants of residential property who would pay the higher sales tax on a recurring
basis each month; and
WHEREAS, affordable rental housing is important for the borough and its residents, and the
borough's best interests would be served by keeping the cap on residential rentals
at$500 per month; and
WHEREAS, while the revenue generated from this increase would be used for funding
education,it would make other revenues available for general borough government
purposes; and
Kenai Peninsula Borough,Alaska New Text Underlined; [DELETED TEXT BRACKETED] Ordinance 2019-15
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WHEREAS, estimates indicate this increase would generate approximately$ million to $
million annually in revenue to the borough, which would help to protect the
unrestricted fund balance in future years at current borough spending levels; and
WHEREAS, KPB 5.18.430(F) requires that any increase in the amount of the maximum taxable
amount be approved by the voters;
NOW, THEREFORE, BE IT ORDAINED BY THE ASSEMBLY OF THE KENAI
PENINSULA BOROUGH:
SECTION 1. That KPB 5.18.430 (A), (B) and(C) are amended as follows:
5.18.430. Computation—Maximum taxable amount.
A. The sales tax referred to in KPB 5.18.100 shall be applied only to the first
$1,000.00[500.00] of each separate sale, rent or service transaction, except
as otherwise provided in this section.
B. Except as provided below for long-term vehicle leases, and residential
property rentals, the payment of rent, whether for real or personal property,
in excess of$1,000.00[$500.00] and for more than one month, shall be
treated as several separate transactions covering the rental/lease for one
month each. The payment of rent for residential property in excess of
$500.00 and for more than one month, shall be treated as several separate
transactions covering the rental/lease for one month each.
C. Services provided on account and billed to the customer on a periodic basis
are subject to application to the tax on a maximum of$1,000.00 [$500.00] of
each billing, per account. For purposes of this section, any advance payment
for services other than to a trust or escrow account is considered to be paid
pursuant to a "billing."
SECTION 2. That a ballot proposition shall be placed before borough voters at the next regular
election to read as follows:
PROPOSITION No.
Shall Section 1 of Ordinance 2019-15, increasing the maximum amount of a sale
subject to the borough sales tax, other than residential rentals, from $500 to $1,000,
be ratified? The maximum amount of residential rentals subject to the sales tax would
remain at $500 per month.
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YES A "yes" vote means you support increasing the maximum amount
of a sale subject to the borough sales tax, other than residential
rentals, from $500 to $1,000.
NO A "no"vote means you oppose increasing the maximum amount of
a sale subject to the borough sales tax, other than residential rentals,
from $500 to $1,000.
SECTION 3. That Sections 2 and 3 shall become effective immediately upon enactment of this
ordinance. Section 1 of this ordinance shall become effective , 2020, only if
the proposition contained in Section 2 is approved by a majority of voters voting
on the question in the regular election of October 1, 2019.
ENACTED BY THE ASSEMBLY OF THE KENAI PENINSULA BOROUGH THIS * DAY
OF *, 2019.
Wayne H. Ogle, Assembly President
ATTEST:
Johni Blankenship, MMC, Borough Clerk
Yes:
No:
Absent:
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