HomeMy WebLinkAboutOrdinance No. 3005-2018Sponsored by: Council Member Boyle
CITY OF KENAI
ORDINANCE NO. 3005-2018
AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI , ALASKA, AMENDING KENAI
MUNICIPAL CODE CHAPTER 7.10-SALES TAX , TO EXEMPT PUBLIC WATER AND SEWER
UTILITY SERVICES TO RESIDENTIAL HOUSING FROM THE CITY'S LEVY OF SALES TAX.
WHEREAS , the C ity of Kenai levies a 3% sales tax on all retail sales , rents and service made or
rendered within the City ; and ,
WHEREAS , the City has incorporated the Kenai Peninsula Borough 's sales ta code by reference
with the exception of the Borough 's sales tax exemption on non-prepared ods; and,
WHEREAS, the City 's Home Rule Charter provides that the City h all the powers of taxation
which home rule Cities may have under the State Constitution an aw; and,
WHEREAS, the City has the authority to exempt certain sale , rents and services from City sales
tax; and,
WHEREAS, the provision of water and sewer servi s is a basic service that all residents need
and should be able to afford ; and,
WHEREAS, eliminat ing the sales tax on wa rand sewer services provided by public utilities to
residences will decrease the financial bur n on households for such services and make living in
Kenai more affordable.
NOW , THEREFORE , BE IT ORDAi D BY THE COUNCIL OF THE CITY OF KENAI, ALASKA,
as follows :
Section 1. Amendment Section 7.10.010 of the Kenai Munici al Code : That Kenai
Municipal Code, Section 7 . 0.010 -Levy of Ta x, is hereby amended as follows:
7.10.010 Levy f Tax
Exce t as erwise rovided in this Cha ter [T].1here is hereby levied a consumers ' sales
tax of th e percent (3%) on all retail sales , rents , and services made or rendered w ithin
the c· limits measured by the gross sales price of the seller.
Sectio Amendment of Section 7 .10.015 of the Kenai Munic ipal Code: That Kenai
Mun ic ipal Code, Section 7.10.050 -Borough Sales Tax Adopted by Reference , is hereby
amended as follows:
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Ordinance No . 3005-2018
Page 2 of 2
7 .10.050 Borough Sales Tax Adopted by Reference and Exemptions
(a) Except as provided [IN (B)] below, incorporated by reference in this Code as though
each code provision was set forth ve rbatim herein are statutes, consisting of ordinances
and/or code provisions of the Kenai Peninsula Borough or such portions thereof, which
provide for the sales taxes , including but not limited to their levy , collection, and
administration.
(b) There shall be no sales tax exemption on non-prepared food . The above sentence does
not affect the sales tax exemption granted under AS 29.45. 700( d) exempting food purchased
under the Food Stamp Act or Special Supplemental Food Program for Women , Infants and
Children .
(c) Public water and sewer services provided to residentia l dwellings are exempt from
the levy of City of Kenai sales ta x. This exemption applies to single and multifamily dwellings
but not to hotels, motels. bed and breakfasts. lodges or other similar businesses offering
transient rooms for fewer than 30 co nsecuti ve days.
Section 2. Severability: That if any part or provision of this ordinance or application thereof to
any person or circumstances is adjudged invalid by any court of competent jurisdiction , such
judgment shall be confined in its operation to the part, provision , or application directly involved
in all controversy in which this judgment shall have been rendered , and shall not affect or impair
the validity of the remainder of this title or application thereof to other persons or circumstances.
The City Council hereby declares that it would have enacted the remainder of this ordinance even
without such part, provision, or application .
Section 3. Effective Date: That pursuant to KMC 1.15.070(f). this ordinance shall take effect
July 1, 2018 after adoption.
ENACTED BY THE COUNCIL OF THE CITY OF KENAI , ALASKA, this 7 day of February , 2018.
ATTEST:
Jamie Heinz, City Clerk
BRIAN GABRIEL SR ., MAYOR
Introduced: January 17 , 2018
Enacted : February 7, 2018
Effective: July 1, 20 18
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