HomeMy WebLinkAbout06092014 City Council Laydowns , (-,, '-3„ 4 14,--f-
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IMPORTANT REASONS TO SUPPORT A BED TAX FOR THE KENAI
TOURISTS I-0 il, viki s you BENriiiiPigri
► AVERAGE THE KENAI PENINSULA BOROUGH ASSEMBLY HAS AN ORDINANCE BEFORE IT TO PUT A PROPOSED
ANCHORAGE NATIONAL BED TAX ACCOMODATIONS, OR "BED TAX", ON THE BALLOT IN OCTOBER'S GENERAL ELECTION.
BED TAX 13,130 HERE IS WHY A BED TAX MAKES SENSE FOR THE KENAI'S FUTURE...
A bed tax would help The Kenai attract more tourism revenue to our area. More tourism
120 represents more money for borough businesses, more tourism-related jobs,and more
�, money in sales tax revenue which lowers the tax burden on residents.
L4 Only the people who stay in a Kenai Peninsula accomodation would pay the tax.
t - Many of the people who will be impacted by collecting the tax-Kenai Peninsula
accomodation owners and managers,are it's most enthusiastic supporters.
-411, 4 Kenai Peninsula tourism is very positive for jobs and the economic health of our community.
If approved,The Kenai's Bed Tax would still be among the lowest in Alaska,and far below the
national average.
�, Revenue from the bed tax would replace the borough's current investment in marketing,
PROPOSED `"_- immediately returning$300,000 to the general fund,and generating over$265 thousand on
KPB BED TAX top of that amount for schools,for a give back of over half a million dollars to the borough.
4%
4% BED TAX BOROUGH WIDE = 2.4 MILLION*
*Using 2013 KPB Taxable Accommodations Sales Data
FUNDING FOR CITIES: 56% RETURNED TO CITIES
SoldotnaSeward'
$184,7201 $458,642 331J1Z0 CITIES: $1,367,194
* Cities that have
a bed tax al BOROUGH KPB MARKETING: $796,609
plate equal to
to will be able MARKETING SCHOOLS: $265,536
to optout of the
KPB Bed Tax.
Homer
$454,060 Kenai
$266,600 11%Seldovia$3,171 USED FOR SCHOOL FUNDING
TOURISM IS OUR COMPETITION ANCHORAGE MAT-SU I • ' S JUNEAU
BIG BUSINESS IS BEATING US
Alaska communities are
aggressively competing 12%
120 5% 8%
for visitor dollars. BED TAX % 1
Municipalities across
the state are investing
in their future by funding
marketing programs.If The
KenaiS7 MIWON 58507000 $2.9 MILLION $1 MIWON
competitive
goingtoremainitive WE HAVE GOT MARKETING BUDGET
TO STAY IN THE GAME. DOLLARS DOLLARS DOLLARS DOLLARS
V
TOURISM PAYS ON THE KENAI
•
WHAT DOES TOURISM MEAN FOR YOU? lie
441! 1 i13 Each U.S. household would pay 51,000 more in taxes
1.1 ALASKA JOBS without the revenue generated by travel and tourism.
IS IN TOURISM ►
Maui, HI -9.25%
BED TAXES IN TOP o. Lake Tahoe, CA- 13%
VISITOR DESTINATIONS Las Vegas, NV- 12%
.I- ► Portland, OR - 11.5%
•
*' 25% L Kenai Peninsula residents pay bed tax virtually anywhere we
WA, travel.Isn't it time we asked our visitors to do the same for us?
OF KPB SALES TAX
COMES FROM VISITORS ALASKA SALES AND BED TAXES
Destination Sales Tax Bed Tax Total
WHAT ISA DESTINATION MARKETING ORGANIZATION? Anchorage 12 12
Destination marketing organizations(DMOs)are organizations Cordova 6 6
charged with representing a specific destination or region and Fairbanks 8 8
helping the long-term development of communities through a Haines 4 4
travel and tourism strategy.
Homer 7.5 7.5
Every state and most counties and cities have a Desti- Juneau 12 12
nation Marketing Organization to promote their area to Kenai 6 0 6
attract new business. DMOs are funded through a corn- Ketchikan 6.5 6.5
bination of occupancy taxes, membership dues, improve- Kodiak 10 10
ment districts and government resources. Mat-Su Borough 5 5
Palmer 3 5 8
DMO'S GO TO WORK FOR YOUR BENEFIT Seldovia 7.5 7.5
Revenues/Expenses:Destinations' investment in their Seward 7 4 11
DMOs continues to grow at strong,sustainable levels. Sitka 12 12
2013 saw the average DMO budget breaking the US Soldotna 6 6
$3.0 million mark,a 3%increase over 2012. Unalaska/Dutch Harbor 3 5 8
• Public Investment grew 4%to US$2.4 million. Private Wasilla 2.5 5 7.5
funding remained flat at$356,000.
• More than three-fourths(79%)receive public
investment in the form of hotel taxes,averaging AVERAGE AMOUNT SPENT BY A VISITOR TO ALASKA
75%of all DMO revenue.
• In terms of private investment,42%receive
membership dues while 35%report partnership $ 941 1174.1161
•$11
revenue.Other top private sources include: print
and cooperative advertising programs,donated
services,corporate sponsorships,event hosting
and publication sales.
WHY ARE TOURISM AND MEETINGS IMPORTANT? Visitor spending is critical for Alaska.The average visitor spends nearly
Travel and tourism is one of the largest and fastest-grow- a thousand dollars in Alaska, on top of their airfare or cruise.Visitors
ing economic sectors in the world. In the Kenai Penin spend their outside dollars in Alaska on everything from dining and
sula Borough,visitors contribute 25%of our sales tax hotels to shopping and tours. These visitor dollars strengthen the
revenue.This is new money coming into our economy, local economy,allowing a whole host of businesses to stay open year-
offsetting the amount of taxes locals pay. round, offer longer hours and develop new products and services
KENAI PENINSULA TOURISM MARKETING COUNCIL
907-262-5229 SHANON@KENAIPENINSULA.ORG 35571 KENAI SPUR HWY.,SOLDOTNA,AK 99669
v a nitkadt, up Department of Public Safety
TH�4' "" +. �« t1 G DIVISION OF FIRE AND LIFE SAFETY
m fits ' 05 Life Safety Inspections Bureau-Anchorage
- a
""' `Anchora5700 East Tudor Road
U2 — ge,Alaska.11 Main:611 Fax:907.269.5018
PERMIT TO DISPLAY FIREWORKS
1.3G AND/OR 1.4G (EXCESS OF 250 POUNDS)
DISPLAY PERMIT NUMBER: 14FIREWORKS1032
This permit is issued to: LANTIS PRODUCTIONS
Mailing Address: 2150 INNES CIRCLE, ANCHORAGE, AK 99515
Pyrotechnic Permit Number: FWP12-006
This permit gives Pyrotechnic ANTHONY W. SCHMIDT the authorization to use and discharge 1.3G
and/or 1.4G fireworks at:
MARINER'S MEMORIAL/SMALL BOAT HARBOR PARKING LOT, SEWARD, AK
on the indicated date(s):JULY 04, 2014 OR R/D JULY 05, 2014
for the purpose(s) of:41H OF JULY
under the provision of AS 18.72.010-060 and 13AAC 50.025.
fth, May 28, 2014
Kelly Nicolello, State Fire Marshal Date
THIS PERMIT IS NOT TRANSFERABLE
Introduced by: Smith
Date: 06/17/14
Hearing: 07/22/14
Action:
Vote:
KENAI PENINSULA BOROUGH
ORDINANCE 2014-25
AN ORDINANCE AMENDING KPB CHAPTER 5.18 TO ESTABLISH AN AREAWIDE
TRANSIENT ACCOMMODATIONS TAX WITH EXEMPTIONS WITHIN CITIES
WHICH LEVY A SIMILAR TAX,SUBJECT TO VOTER APPROVAL
1 WHEREAS, due to the scheduled decline of municipal revenue sharing, increased tax
2 exemptions, significant increases in expenses including mandated retirement
3 system contributions, insurance costs, and increased overall borough and school
4 district expenses, the borough is considering a variety of measures to keep the
5 borough's unreserved general fund balance within the parameters established by
6 Resolution 2001-045; and
7 WHEREAS, tourism is a sustainable renewable resource; and
8 WHEREAS, the Kenai Peninsula Borough has funded the Kenai Peninsula Tourism and
9 Marketing Council for the last 24 years; and
10 WHEREAS, the continued marketing of the Kenai Peninsula as a tourist destination requires a
11 stable source of funding; and
12 WHEREAS, a number of people have suggested that the borough impose a transient
13 accommodations tax, otherwise known as a bed tax, to increase tax revenue
14 derived from the many tourists who visit the Kenai Peninsula Borough; and
15 WHEREAS, bed taxes are common throughout the State of Alaska and other states in the
16 United States; and
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1 WHEREAS, as this type of a bed tax is a form of sales tax, voter approval is required before
2 the bed tax may be imposed;
3 NOW, THEREFORE, BE IT ORDAINED BY THE ASSEMBLY OF THE KENAI
4 PENINSULA BOROUGH:
5 SECTION 1. That KPB 5.18.100 is hereby amended as follows:
6 5.18.100. General—Levied—Amount.
7 A. There is levied by the borough a consumer's sales tax of up to 3 percent
8 maximum rate on all retail sales, on all rents, and on all services made or
9 rendered within the borough, measured by the gross sales price of the
10 seller.
11 B. There is additionally levied by the borough a sales tax on all hotel or motel
12 room rent payable to a seller in the amount of 4 percent of the hotel or
13 motel room rent.
14 1. Hotel or motel rentals which continue for thirty (30) or more
15 consecutive days shall not be subject to the tax under KPB
16 5.18.100(B).
17 2. Hotel or motel rentals which are less than thirty (30) consecutive
18 days shall be subject to the transient accommodations tax even if
19 the room or rooms were originally taken with the intent to use or
20 occupy for thirty(30) or more consecutive days.
21 [B] C. hi addition to the taxes levied by the borough under KPB 5.18.100(A) and
22 (B) any municipality within the borough may levy a consumer's sales tax
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1 as provided by Alaska Statute which shall be reported, collected, and
2 enforced according to the terms of this chapter.
3 SECTION 2. That KPB 5.18.110 is hereby amended as follows:
4 5.18.110. General—Proceeds—Use for school purposes—Payment to cities.
5 A. The net proceeds from the taxes collected by the borough under KPB
6 5.18.100(A) and pursuant to this chapter shall be used exclusively for
7 borough school purposes.
8 B. An amount equal to seventy-five percent of the net proceeds of taxes
9 authorized by KPB 5.18.100(B) collected from the area of the borough
10 outside of the cities shall be used to promote tourism in the borough and
11 an amount equal to the remaining twenty-five percent shall be used for
12 borough school purposes. Unless otherwise authorized by the assembly,
13 the mayor shall provide for the promotion of tourism in the non-areawide
14 portion of the borough to be effected by contract under the applicable
15 terms and conditions in KPB Chapter 19.10.
16 The borough may enter into cooperative agreements with the cities in the borough
17 to cooperativelypromote tourism and provide visitor services, and providing for a
18 payment by the borough to each city an amount equal to the amount of funds
19 generated by the transient accommodations tax within each city. Such agreements
20 shall be approved by the assembly.
21 [B] C. The net proceeds from the taxes collected for any city shall be promptly
22 paid over to the appropriate city.
23 SECTION 3. That KPB 5.18.130(A) is hereby amended as follows:
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1 5.18.130. General—Seller—Liability to the borough—Successor liability-
2 Corporate officer liability.
3 A. All [SALES] taxes collected or which should have been collected pursuant
4 to this chapter are borough moneys for which the seller is at all times
5 liable to the borough. The seller is also liable for all moneys collected
6 from the buyer as sales tax under KPB 5.18.100.
7 SECTION 4. That KPB 5.18.200 is hereby amended as follows:
8 5.18.200. Exemptions/waivers—Exemptions.
9 A. The following classes of retail sales, services [AND], rentals and transient
10 accommodations are exempt:
11 1. Casual and isolated sales or rentals by a seller who does not
12 regularly engage in the business of selling goods or services, or
13 making rentals, including transient accommodations; but only if:
14 a. The total annual gross sales for goods sold, services
15 rendered or rentals made by the seller does not exceed
16 $1,000.00 per year; or
17 b. The sales of goods do not occur for more than 14 days in a
18 calendar year, and are not made through a dealer; or
19 c. The sales of goods are made by a registered business to sell
20 business equipment used in the business, and not held as
21 inventory;
22 2. Human health care services provided by, and prescription drugs,
23 devices, and supplies prescribed for human use by, a person
24 licensed or certified to provide those services or goods, as
25 applicable, under Alaska Statutes Title 08.
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1 3. Sales of and subscriptions to newspapers, and subscriptions to
2 periodicals.
3 4. Dues or membership fees for nonprofit organizations;
4 5. Sales of animal food, seed, plants and fertilizers to farmers using
5 such commodities to produce goods for sale;
6 6. Retail sales of real property. Services performed by a real estate
7 broker or agent are not exempt under this section;
8 7. Retail sales, rents, transient accommodations sales, or services
9 which the borough is prohibited from taxing by the Constitution or
10 laws of the United States or of the State of Alaska;
11 8. Services performed by morticians licensed under Alaska law, and
12 retail sales of funeral supplies by morticians and municipalities;
13 9. Receipts of nonprofit schools and student organizations within the
14 schools for extracurricular activities or events;
15 10. Financial service transactions. For purposes of this chapter,
16 financial service transactions are limited to: deposit account
17 services, loan transaction fees, transactions relating to the sale or
18 exchange of currency or securities, transactions for conversion of
19 negotiable instruments, safe deposit services and escrow collection
20 services;
21 11. Sale of passenger seat tickets by a commercial airline. Air charter
22 and air taxi sales are exempt;
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1 12. Freight hauling services;
2 13. Title insurance premiums;
3 14. Food purchased with coupons issued under the federal food stamp
4 program;
5 15. Retail sales of food are exempt in the following circumstances:
6 a. When served in cafeterias or lunchrooms of elementary,
7 secondary, post-secondary schools, colleges or universities
8 which are operated primarily for students and staff, and are not
9 operated for the public or for profit;
10 b. When served to clients and staff, and not to the public or for
11 profit, as part of services provided by a nonprofit hospital or
12 other nonprofit or government organization licensed by the
13 State of Alaska for the care of humans;
14 c. Meals delivered by a nonprofit organization to handicapped or
15 senior citizens at their place of residence or meals served on
16 the premises of a nonprofit senior citizens; organization which
17 receives funding from the State of Alaska or a political
18 subdivision of the state: provided that the sale price of such
19 meals does not exceed the cost of delivery or service of such
20 meals;
21 d. Exemptions/waivers - Sales of nonprepared food items. Sales
22 tax is prohibited on all sales of nonprepared food items from
23 September 1 until May 31 of each year. These food items
24 exempted from sales tax include those which have been
25 previously granted exemption in KPB 5.18.200(14) for food
26 purchased with coupons issued under the federal food stamp
27 program.
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1 16. Senior, disabled resident, and disabled veteran housing rent. Rental
2 payments for a dwelling unit for a permanent place of abode by a
3 resident who is at least 65 years of age, or who is a disabled
4 veteran or a disabled resident. Disabled veteran has the meaning
5 provided in KPB 5.12.105(F)(3), and the term disabled resident has
6 the meaning provided in KPB 5.12.110, as those provisions are
7 now enacted or may be hereinafter amended. Dwelling unit means
8 a house, apartment, or room in a residential facility such as
9 congregate housing or assisted living. Permanent means the tenant
10 has lived within the Kenai Peninsula Borough for a minimum of
11 six months and is a resident of the State of Alaska. The landlord
12 must accept an affidavit on a form provided by the borough or
13 otherwise acceptable to the borough administration from the tenant
14 as proof of age and eligibility for this exemption. If any person
15 under 65 years of age, other than a spouse, resides in the dwelling
16 unit with a qualifying senior, the exemption may not be granted
17 unless the senior is the principal source of support for such person
18 less than 65 years of age, or unless the person qualifies as a
19 disabled veteran or a disabled resident. This exemption shall also
20 apply to a resident at least 60 years old who is the widow or
21 widower of a person who qualified for this exemption as a senior
22 citizen or a disabled veteran.
23 17. Childcare and adult daycare services.
24 18. Services provided and material consumed in the fulfillment of a
25 manufacturer's warranty, non-manufacturer's warranty, or service
26 agreement. The initial purchase of a manufacturer's warranty, non-
27 manufacturer's warranty, or service agreement is subject to tax at
28 the time of purchase but may be included in the initial sales
29 transaction for application of KPB 5.18.430. Any portion of a
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1 repair paid by the customer through a deductible or other means is
2 not exempt under this section.
3 19. Services provided by a cooperative nonprofit organization
4 recognized by either the State of Alaska or the federal government
5 to assist in preventing, containing, and removing spilled crude oil
6 or refined petroleum products, and to cooperate with governmental
7 agencies, private organizations, and industry in preventing,
8 containing, and removing any spills of crude oil or refined
9 petroleum products upon waters in the Kenai Peninsula Borough
10 and the adjacent lands.
11 B. The following classes of buyers are exempt from the provisions of this
12 chapter:
13 1. Retail sales, services and rentals, excluding transient
14 accommodations,to:
15 a. An organization that has obtained a 501(c) exemption
16 ruling from the Internal Revenue Service, as long as proof
17 of such ruling is provided to the borough administration;
18 b. A church that is organized as a nonprofit corporation under
19 the laws of the State of Alaska, as long as proof of such
20 incorporation is provided to the borough administration;
21 2. Retail sales, services and rentals, including transient
22 accommodations, to the United States, the State of Alaska, or any
23 instrumentality or political subdivision of either;
24 C. The following classes of sellers are exempt from the provisions of this
25 chapter:
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1 1. An organization that has obtained a 501(c) exemption ruling from
2 the Internal Revenue Service, as long as proof of such ruling is
3 provided to the borough administration; but only under the
4 following conditions:
5 a. The sales are not liquor sales or sales of food sold through
6 regularly conducted restaurant type operations;
7 b. The organization is exempt under a subsection other than
8 501(c)(12)of the Internal Revenue Code.
9 2. Groups sponsored by public or nonprofit schools.
10 D. No borough transient accommodations tax shall be imposed to the extent
11 and in the amount that a transient accommodations tax is imposed by a
12 city in the borough on the same transaction as is the borough tax.
13 SECTION 5._That KPB 5.18.210 is hereby amended as follows:
14 5.18.210. Exemptions/waivers—Exemption for sales for resale.
15 The following sales of tangible personal property, intermediate services, and
16 rentals are exempt under this chapter:
17 A. Sales to a wholesale or retail dealer in the property sold or transient
18 accommodations rented, for the purpose of resale by the dealer;
19 B. Sales of personal property as raw material to a person engaged in
20 manufacturing for sale, where the property sold is consumed in the
21 manufacturing process of, or becomes an ingredient or component part of
22 a product manufactured for sale by the manufacturer;
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,
1 C. Sale of personal property as raw material to a licensed building contractor
2 where the property sold becomes a component part of the product sold by
3 that building contractor.
4 D. Sales of intermediate services to a business the charge for which will be
5 passed directly by that business to a specific buyer are exempt under this
6 chapter; except that utilities shall in no case fall within this exemption.
7 E. Where personal property is rented from a dealer in a taxable transaction
8 and the renter is then directly reimbursed by a third party for the exact
9 rental expense, without markup, then that reimbursement is not a rental or
10 lease subject to the borough sales tax.
11 F. Services rendered by an employee to his/her employer are not subject to
12 borough sales tax.
13 SECTION 6. That KPB 5.18.450 is hereby amended as follows:
14 5.18.450. Tax jurisdiction—Office location of seller.
15 A. The rate of tax to be added to the sale price is based on the place of sale.
16 The place of sale of goods and merchandise is the location of the retail
17 outlet at which or from which delivery was made. If the invoice includes a
18 charge for installation, then the place of the sale for the goods and service
19 is the retail outlet at which or from which delivery was made. When goods
20 are delivered into the borough from a point outside of the borough and the
21 seller maintains an ongoing physical presence in the borough, then the
22 location of the seller's in-borough presence will determine the place of
23 sale. If a seller has no ongoing physical presence in the borough but has
24 established nexus with the borough, the point of delivery will determine
25 the place of sale. If the seller has no ongoing physical presence in, or
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1 nexus with, the borough the sale is not subject to the borough sales tax.
2 For purposes of this section the following terms are defined as shown
3 below:
4 1. "Nexus" means the seller has established a connection within the
5 borough by use of marketing techniques, such as telephone or
6 door-to-door sales, which are significantly associated with the
7 seller's ability to establish or maintain a market for its goods in the
8 borough.
9 2. The "point of delivery" where there is no ongoing physical
10 presence in the borough is the place where physical possession of
11 the goods is transferred to the customer.
12 3. "Physical presence" is as defined in KPB Sales Tax Policy 95-02,
13 copies of which are available in the finance department.
14 B. The place of sale of services is where the services are delivered, which
15 means the place where the services are rendered. The place of sale for
16 rentals is the place where the real property, is located, or where the
17 personal property is delivered to the renter. The place of sale for transient
18 accommodations is the location of the rented accommodation. The
19 borough shall determine the place of sale of a good, service, or rental
20 pursuant to this section, and the borough's determination is final.
21 C. When there is a question or dispute over the place where services are
22 rendered, a seller of a service may, after requesting and receiving borough
23 approval in writing, collect the tax based on the office location of the
24 business selling such services. Approval of a request to collect a tax at the
25 seller's office location is completely within the discretion of the borough,
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1 and shall not be granted if the borough has already determined that the
2 place of sale for the seller's industry is not the office location.
3 D. The seller is liable for any sales taxes due because of the seller's incorrect
4 determination of the sales tax rate to be applied.
SECTION 7. That KPB 5.18.900 is hereby amended as follows:
5 5.18.900. Definitions.
6 When not clearly otherwise indicated by the context, the following words and
7 phrases, as used in this chapter, have the following meanings:
8 [A.] "Buyer" includes persons who are purchasers of personal property or
9 services, and renters of rental space or transient accommodations. A
10 person who rents a hotel or motel room for a term of 30 consecutive days
11 or more for use by that person's employees for periods of less than 30
12 consecutive days each on a rotating basis is not a buyer.
13 "Hotel room," "motel room" or "transient accommodations" means a
14 structure or part of a structure rented, or offered for rent, for a term of less
15 than 30 consecutive days for dwelling, lodging or sleeping purposes,
16 including without limitation bed and breakfast establishments, cabins, and
17 other similar temporary sleeping facilities, but excluding a structure or
18 part of a structure rented or offered for rent solely in connection with a
19 principal business or institutional purpose other than providing meals,
20 lodging, entertainment or recreation; for example, a hospital or university
21 dormitory.
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1 [B.] "Long-term vehicle lease" means a lease of a motor vehicle, as defined
2 below, for a period of 24 months or longer. As used herein a "motor
3 vehicle" is a motor vehicle, as defined in AS 28.40.100(12), that is either
4 required to be registered under AS 28.10.011, or is exempted from
5 registration under AS 28.10.011(6) and (11). However, "motor vehicle"
6 does not include either an "off-highway vehicle" as defined in 13 AAC
7 40.010(30) or a "snowmobile" as defined in 13 AAC 40.010(49).
8 [C.] "Mayor" or "borough mayor" means the mayor of the Kenai Peninsula
9 Borough or his designee.
10 [0.] "Newspaper" means a publication of general circulation bearing a title,
11 issued regularly at stated intervals at a minimum of at least two weeks, and
12 formed of printed paper sheets without substantial binding. It must be of
13 general interest, containing information of current events. The word does
14 not include publications devoted solely to a specialized field. It shall
15 include school newspapers, regardless of the frequency of the publication,
16 where such newspapers are distributed regularly to a paid subscription list.
17 [D.] "Nonprofit organization" means an association, corporation, or other
18 organization where no part of the net earnings of the organization inures to
19 the benefit of any member, shareholder, or other individual.
20 [E.] "Office location" means the place in the borough where the seller does
21 business, as determined by the borough.
22 [P.] "Periodical" means any bound publication other than a newspaper that
23 appears at stated intervals, each issue of which contains news or
24 information of general interest to the public, or to some particular
25 organization or group of persons. Each issue must bear a relationship to
26 prior or subsequent issues with respect to continuity of literary character
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1 or similarity of subject matter, and sufficiently similar in style and format
2 to make it evident that it is one of a series.
3 [F.] "Person" includes individuals and every person recognized in law and
4 every group of persons who act as a unit.
5 [G.] "Quarter" means trimonthly period established by the finance director.
6 [Q.] "Recreational sales" means sales where the seller provides recreational
7 services and rentals, except automobile rentals, to the buyer, either
8 separately or in a combination, at an aggregate price, including, but not
9 limited to guiding, charters, sightseeing tours, outfitting or equipment
10 rentals, and temporary lodging included with such sales.
11 "Rent"means:
12 1. to rent a room or other accommodation means to obtain the right to
13 use or occupy the room or other accommodations; and
14 2. a monetary consideration paid to rent an accommodation.
15 [H.] "Sale" or"retail sale" includes:
16 1. Every sale or exchange of services;
17 2. Every rental or lease of personal property;
18 3. Every sale of the use or play of a vending machine;
19 4. Installment, credit, and conditional sales;
20 5. Every sale of use or title in tangible personal property, regardless
21 of quantity or price, whether sold by vending machine or
22 otherwise;
23 6. Every rental or lease of real property or accommodation other than
24 a rental or other agreement for occupancy of residential real
25 property pending the closing of a transaction which does not
26 exceed 90 days in length for a buyer of that property.
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1 7. Gaming sales authorized by AS 5.15.
2 [I.] "Sales price" means consideration paid by the buyer whether money,
3 credit, rights, or other property, expressed in terms of money equal to the
4 fair market value of the consideration and including delivery or
5 installation costs, taxes, or any other expenses whatsoever, measured by
6 the gross sales price of the seller.
7 [J.] "Seller" includes persons who are vendors of property, persons furnishing
8 services, the lessors of rental space or goods, and all persons making sales,
9 including space or goods, and all persons making sales, including
10 consignees and persons who conduct sales where items will be sold for a
11 commission or fee. "Seller" means a person who offers hotel or motel
12 rooms for rent and to whom rent for a hotel or motel room is payable,.
13 either directly or through an agent or employee. Notwithstanding any
14 other provisions of this chapter, "seller" includes all persons engaging in
15 sales of fireworks regardless of the length of time, duration, or volume of
16 such sales in any calendar year.
17 [K.] "Services" includes all services of every manner and description, which
18 are performed or furnished for compensation, including but not limited to:
19 1. Professional services;
20 2. Services in which a product or sale or property may be involved,
21 including personal property made to order;
22 3. Utilities and utility services not constituting a sale of personal
23 property, including but not limited to sewer, water, solid waste
24 collection or disposal, electrical, telephone services and repair,
25 natural gas, cable or satellite television, and Internet services;
26 4. The sale of transportation services;
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1 5. Services rendered for compensation by any person who furnishes
2 any such services in the course of his trade, business, or
3 occupation, including all services rendered for commission;
4 6. Any other services, including advertising, maintenance, recreation,
5 amusement, and craftsman services;
6 [L.] "Time of sale" for installment sales is the time at which the initial payment
7 is made.
8 [M.] ["TEMPORARY LODGING" IS DEFINED AS A SERVICE TO PROVIDE ANY
9 LODGING OF LESS THAN ONE MONTH.]
10 "Transient Accommodations Tax" means a tax levied on the rental of
11 hotel rooms, motel rooms, or transient accommodations as defined in this
12 section.
13 [N.] "Vending machines" means any good or service-dispensing machine or
14 amusement device of any kind.
15 SECTION 8. That a ballot proposition shall be placed before borough voters at the next regular
16 election to read as follows:
17 PROPOSITION NO.
18 Shall KPB Ordinance 2014- , providing for the imposition of up to 4 percent
19 transient accommodations tax,be ratified?
20 YES A "Yes" vote means you are voting to enact Kenai Peninsula
21 Borough Ordinance 2014- which would impose a 4 percent
22 tax on room rentals of less than 30 consecutive days, with revenues
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1 to be used primarily for promotion of tourism in the borough and
2 the remainder used for borough school purposes.
3 NO A "No" vote means you are voting against enacting Kenai
4 Peninsula Borough Ordinance 2014- which would impose a 4
5 percent tax on room rentals of less than 30 consecutive days, with
6 revenues to be used primarily for—promotion of tourism in the
7 borough and the remainder used for borough school purposes.
8 SECTION 9. That Section 8 shall become effective immediately upon the enactment of this
9 ordinance. Sections 1 through 7 of this ordinance shall become effective April
10 1, 2015, only if the proposition contained in Section 8 is approved by a majority
11 of voters voting on the question in the regular election of October 7, 2014.
12 ENACTED BY THE ASSEMBLY OF THE KENAI PENINSULA BOROUGH THIS *
13 DAY OF * 2014.
Hal Smalley, Assembly President
ATTEST:
Johni Blankenship, MMC, Borough Clerk
Yes:
No:
Absent:
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