HomeMy WebLinkAboutRes1997-028
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Sponsored by: Garzini
CITY OF SEWARD, ALASKA
RESOLUTION NO, 97-028
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD,
ALASKA, APPROVING FISCAL YEAR 1995 AND 1996 SHARED FISHERY
RESOURCE LANDING TAX AGREEMENTS WITH THE STATE OF
ALASKA
WHEREAS, in 1993 the Alaska Legislature enacted the fishery resources landing tax which
levies a tax on processed fishery resources landed in Alaska based on the unprocessed value of the
resource; and
WHEREAS, persons subject to the landing tax, which became effective January I, 1994,
were required to pay Calendar Year 1994 and 1995 taxes by June 30, 1995 and 1996 respectively;
and
WHEREAS, members of the American Factory Trawler Association (AFTA) paid these
taxes under protest and are not pursuing an action against the State of Alaska seeking a declaration
that the landing tax is unconstitutional; and
WHEREAS, this legislation provides for the State to share a portion of the landing tax
revenues with municipalities based upon the location the fish were first landed or transferred in the
State; and
WHEREAS, the Legislature has appropriated that portion of the landing tax revenues to be
paid to municipalities and has agreed to transfer the City's share of the revenues to the City under
the terms of an agreement providing that the City will hold this money and refund it in lump sum
together with any interest or investment earnings should the AFT A challenge be upheld by the
courts;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF SEWARD, ALASKA, that:
Section 1. The City Manager is hereby authorized and directed to execute the Fiscal Year
1995 and Fiscal Year 1996 Shared Fishery Resource Landing Tax Agreements with the State of
Alaska, providing for the transfer to the City of its share of the landing tax collected by the State in
those two fiscal years.
Section 2. A copy of each of the agreements noted in Section 1, above, is attached and
incorporated herein by reference.
CITY OF SEWARD, ALASKA
RESOLUTION NO. 97-028
Section 3. This resolution shall take effect immediately upon its adoption.
PASSED AND APPROVED by the City Council of the city of Seward, Alaska, this 24th
day of February, 1997.
THE CITY OF SEWARD, ALASKA
AYES:
NOES:
ABSENT:
ABSTAIN:
Bencardino, Blatchford, Clark, Keil, King
None
Anderson, Crane
None
ATTEST:
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FY 96 Shared Fishery Resource Landing Tax
Agreement
This agreement is made by the City of Seward ("City") and the State of Alaska
Department of Revenue ("State").
RECITALS
1, The 1993, Alaska Legislature enacted the fishery resource landing ("landing") tax
which levies a tax on processed fishery resources landed in Alaska based on the
unprocessed value of the resource, The landing tax became effective January 1, 1994,
The landing tax is assessed on fishery resources processed outside the state's three-
mile limit and landed or transferred within state waters.
2. Persons subject to the landing tax were required to pay calendar year 1995 taxes by
June 30, 1996. Taxpayers filed tax returns and paid the tax under protest.
3, AS 43.77.060 provides for the State of Alaska to share a portion oflanding tax
revenues with municipalities based on the location where the fish were first landed or
transferred in the state. The 1996 legislature appropriated funding to share FY 96
landing tax revenue to municipalities (Ch 117, SLA 96). The City of Seward is one
such municipality. The City's shared portion ofFY 96 landing tax revenue is twenty-
four thousand, two hundred ninety-six dollars and thirty-seven cents ($24,296.37).
4, Members of the American Factory Trawler Association (AFTA) have filed, and are
pursuing, an action against the State of Alaska seeking the landing tax to be declared
unconstitutional. This action has not been resolved.
5. The State will transfer the authorized shared landing tax revenue to the City under
terms of this agreement. The City agrees to hold this money in escrow and refund it
in lump sum together with any interest or investment earnings should the challenge to
the landing tax prevail.
12/96
FY 96 Shared Fishery Resource Landing Tax
Agreement
Page 2 of 2
Accordingly, the City and State hereby agrees as follows:
1, The State shall pay the City the sum of twenty-four thousand, two hundred ninety-
six dollars and thirty-seven cents ($24,296,37) in shared landing tax revenue in the
form of a warrant made payable to the City.,
2. Should the challenge to the landing tax prevail, the City agrees to remit to the State,
within 90 days after the City receives written notice from the State, all funds
received under this program, plus interest at the average annual percentage rate
earned by the City through its repurchase agreement investments over the period the
City held the money.
Agreed this
day of
, 19_
STATE OF ALASKA
CITY OF SEWARD
Deborah V ogt
Department of Revenue
Ronald A. Garzini
City Manager
ATTEST:
Linda Murphy
City Clerk
12/96
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FY 95 Shared Fishery Resource Landing Tax
Agreement
This agreement is made by the City of Seward ("City") and the State of Alaska
Department of Revenue ("State").
RECITALS
1. The 1993, Alaska Legislature enacted the fishery resource landing ("landing") tax
which levies a tax on processed fishery resources landed in Alaska based on the
unprocessed value of the resource. The landing tax became effective January 1, 1994.
The landing tax is assessed on fishery resources processed outside the state's three-
mile limit and landed or transferred within state waters.
2, Persons subject to the landing tax were required to pay calendar year 1994 taxes by
June 30,1995. Taxpayers filed tax returns and paid the tax under protest.
3. AS 43.77.060 provides for the State of Alaska to share a portion oflanding tax
revenues with municipalities based on the location where the fish were first landed or
transferred in the state. The 1995 legislature appropriated funding to share FY 95
landing tax revenue to municipalities (Ch 94, SLA 95). The City of Seward is one
such municipality. The City's shared portion ofFY 95 landing tax revenue is one
thousand, four hundred fifty-four dollars and eighty-five cents ($1,454.85).
4, Members of the American Factory Trawler Association (APTA) have filed, and are
pursuing, an action against the State of Alaska seeking the landing tax to be declared
unconstitutional. This action has not been resolved.
5. The State will transfer the authorized shared landing tax revenue to the City under
terms of this agreement. The City agrees to hold this money in escrow and refund it
in lump sum together with any interest or investment earnings should the challenge to
the landing tax prevail.
12/96
FY 95 Shared Fishery Resource Landing Tax
Agreement
Page 2 of 2
Accordingly, the City and State hereby agrees as follows:
1, The State shall pay the City the sum of one thousand, four hundred fifty-four dollars
and eighty-five cents ($1,454.85) in shared landing tax revenue in the form of a
warrant made payable to the City.
2. Should the challenge to the landing tax prevail, the City agrees to remit to the State,
within 90 days after the City receives written notice from the State, all funds
received under this program, plus interest at the average annual percentage rate
earned by the City through its repurchase agreement investments over the period the
City held the money.
Agreed this
day of
,19_.
STATE OF ALASKA
CITY OF SEWARD
Deborah V ogt
Department of Revenue
Ronald A. Garzini
City Manager
ATTEST:
Linda Murphy
City Clerk
12/96