HomeMy WebLinkAboutRESOLUTION 1992-55 Suggested b¥: City Counoil
~BSO~U~XO~ NO. 9~-55
THE PASSAGE
CLASSIFYING BOAT' .... ~-~'"~ BOROUGH ORDINANCE NO. 92-36'
~ ~m vESSELS FOR TH ' ·
ESTABLISHING A SEVERANCE TAX ON FISH.' E PURPOSE OF TAXATION AND
WHEREAS, the initiation of a fee for boats and vessels, as oppOSed..
to personal property taxes, would not be in the best interest of
the Borough and the cities of Kenai, Soldotna, Seward and Seldovia,
and
WHEREAS, this ordinance would reduce the amount of personal
property tax revenue from the fishing industry to the Borough,
presumably to be offset by the severance tax in good fishing years,
and
WHEREAS, if this change in taxation causes a net loss to the
Borough, the result will no doubt be an increase in the Borough
mill rate, affecting Kenai taxpayers, and
WHEREAS, the severance tax wi1! not be allocate
and
WHEREAS, passage of this ordinance would encourage other
interest groups on the Kenai Peninsula to seek exemption for their
own personal property interests.
NOW THEREFORE, BE IT RESOLVED BY THE COUNCIL OFT HE CITY OF KENAI,
that the City Council, by this resolution, opposes the passage of
Kenai Peninsula Borough Ordinance No. 92-36, classifying boats and.
vessels for the purpose of taxation and establishing a severance
tax on fish.
PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 19th day
of August, 1992.
ATTEST:
ol L. FreaS, cit~-~lerk-
Approved by Finance
8/10/92
August
1992,
l?Bl-lBB1,
CITY OF KENAI
TELEPHONE,
' PAX ~07.~,83.~0S4
Betty Glick, President.
Kenat Peninsula Borough Assembly
144 No,ch Binkley Street
Soldotna, ~ 99669
Res
Ozdinanae Ho. 92-36 - Olaeotfy~ng Bo~ts end Vessels for the
l~L~pOSe Of Tex&t~on and Bet&blUshing a Sever&uae Tax on
Dear NadamPrestdent:
The Kenat City Council and City Administration are opposed to the
passage of Ordinance No. 92-36. Zt is the £eeltnq of the City
Council that initiation of a fee' for boats and vessels,* as.. opposed
to personal property taxes, .would not. be tn the best interest: of.
the Borough and the'cities of. Kenai, Soldotna, .'seward. and SeldOVia.
·his ordinance would reduce 'the anount of personal Property tax,
revenue free the' f/shing industry to the Borough.; 'presumably to be
offset by the severance tax in good f!shinq years. ' ·
If this change in taxation causes a net loss to the Borough, the
result will no doubt be an increase in the Borough'mill rate',
affecting Kenai taxpayers. Further,' it is my Understanding that
~e s~veran?? t~x~il~ not be allocated to Borough service areas.
Tneretore, tee central Hospital service area, An which Kena£ is
included, may be forced to increase its mi'Il rate.
Passage of this ordinance would encourage o~her' special interest
groups on the Kenai Peninsula to Seek exemption 'for their own
personal property interests. . AirPlane o~ners, construction
contractors and others would be Justified in requesting ~hat their
equipment be taken off the personal proper~y tax rolls.
The City of Kenat asks that the Borough Assembly defeat Ordinance
No. 92-36.
Sincerely,
Charles A. Brown
Acting City Manager
R°It'h~ bremd fBx
trarmmittal memo 7671
Vote:
Action:
Anderson
KENAI PI]~%fINSULA BOROUGH
ORDINANCE 92-36
WHEREAS, A.,$. 29.45.057(b)(1! authorizes a.munictpality to cLust.fy boats and vessels for
o~'~u ~r~__,s~ O~..t~. ,on.and .~hsh the ~ valuatio, of boats and
c oas, s or mmr regtste, r~ oF certificated net tonnage; and
W~, the applfcati.on of ad valorem taxes to vessels imposes a ta~ b
fully recogmze the fluctu ' ._ . _ urden that does not
oreel,,.~;.,- ,,--' ....... ation, s. in com_mercial fishing, and downtime nf
r --,. "'"',s ,,;tr production or income from comm~ fishing; a~ ....
WHKREAS, ¢la.qsific~tion of boa.ts ~d vessels for a fl.x~, rate of taxation coupled with a tax
on harvested f'Lsh will moFe equitably distribut~ the tax burden; '-
NOW, THEREFORE, BE IT ORDAINI~ BY THE ASSEMBLY OF THE KENAI
PENINSULA BOROUGH:
Section 1. Tf~t ~PB 5.12.150 L~ repe~ed and recz~c~ to read ss follows:
. 5.12.050 A~M~me-t-p.,~ ....
classlfied - - -:---- _ ,., _-~-~. ,,t. rot pttrpo~ of taxation, boats and yes.Mis shall b~
and taxed tn the f'oHowing manner:
Class 1
Cleft 3
Cta,~ 4
Class 6
Claes 7
Zen thnn 1S fl length and less tl3m ~ net tons $ IS
IS to 19 ft and lotq thftu $ net tons $ 30
20 to 29 R and less thau $ net tons $ ~0
30 to 39 R or $ ton~ to 19 tom $150
40 to 49 fi or 20 tonf to 49 ton~ $ 300
~0 to 70 ff orS0 to ~ tons $ SO0
70 or more fl o1' ]00 m' more tom
B. In cstablish/ng thc class for a boat or vessel, the following proced~ shah apply:
], Length and tonnage measurements shah be based on standards established by the
boro~h assesmr.
P~ 01
Ordlmm~e 92.36= '
RUC~10-92 I~0N 8:54 KPB 0LERK
2. Length measurements between feet Whole numbers and. tonnqe mea~~ts
between ton whole numbers shall be rounded up rathe next higheSt, foot or. ton whole number,~,
3. A bo~ or vesset's length.shall dommlnc its chsS~..u~;eP ,tho boator Vesset'snet~.
tonnase is greater than the maximum tonnage for tlut lcnsth Chs8, tn which case the elaSs s!mll
be determined by the ne tonnage. ' ' :. . .... . .."
Section 2. KPB Title 5 is amended re edda chepter re reed. foll°WS:
S~ANCB TAXB$
Sections:
5.14.010
5.14.020
5.14.030
$.14.040
5.14.050
5.14.060
Severance tax levied-resources subject to tax.
Collection and administration.
Enforcement,
Severance tax return veriqcation.
Confidentiality.
Liabili~ for and collection of' severance tax.
5.14.070 Penalties and interest.
5,14.080 D~flnitions.
on any severer or harvester of certain natural resources, on-. ex, se tax,'d~0minated as a.
severance tax. The tax shall be collected for each calendar quarter 8s Provided in this'ChaPter.
The tax shall be two-tenths ot' one percent (0,2~) of the sress production valu~ for'thc.calender
quarter resulting from the following a~tivittes:
A. Harvesttng of any raw flnfish, shellfish, mollusks and other cotnmea'~al produots of
the sea.
~ Collection and Administration. X. The purchaser of .resources Severed or
ha~estod shall resister, collect and trammit the tax on the severer or harvester's behalf.
n. A purchaser who timely and ¢ozrcct¥ files a properly'completed tax return ~ong. with.
full payment of all taxes due under this" chapter Shall be entitled to retain five percent (5~,)'of
the total tax collected during the calendar quarter to defray administrative. Omts, .
C. The ptt~has~r shall hold the tax cellectM .in trust for tbe Bo.mu~ until paid. Th~
purchaser shall be entitled to keep any.' jntm~ acm~g to tim.tax aecotmt if the payment is
timely. :
D. The gross production valtm for tho calmdar quarter shall include the amoUnt paid to
any severer or harvester for taxable resources purchased bUt not paid .forby the purchaser during
any prior calendar quarter.
13. An 'offshore processor which processes, delivers, catches,, or ra~tves fish products
within the boundaries of tho borough is liable for and shall pay tho tax. The gross production
Konai Pe~ttnmda Ooroush, Alaska
,~. AUr~-10-~2 I~ON 8:~5 KPB OL£RK
F~ NO. 907262861~5
P, 03'
value will be based on the gross weight of the raw fish products and the current sates pries for
fish products of like quality, and c_harac?.r/ ..... . ..........--'--c~ tax mum, under
P. Bvery severer or tmrvester snail sUOmlt m m~ .ma.yu~ u..aev,,--, ..
oath, at the time the tax ts paid, containina thc £oI1o..wl?s mm~mauon: .
I. A description of the property from which the resource was severed or halvested
by legal description or borough-assiBned account ?_umber;
2, The gross amount of recovered units severed or hawested duflng the calendar.'-'"
L
quarter; an3d' The gross sales value of all recovered units severed or harvcsted and sold during
the calendar quat~r. .
D. The .return or tax statement along with all taxes du? the borough for the calendar quarter
must be recewed at the borough on or before the last business day of thc month followins the
end of the calendar qu.._a~.r for which the return or. statement is required.
B. This tax constitutes a lien chargeable agamst the property owned by the severer. The
lien may be for~losed by the borough in the same mannqr as any other lien against rear or
imu $.1~.030 ~nforcement. A, .The SUl~rlor Court, upon .thy. request of the mayor, s.hall
the myer may d~ine the severance tax on parues wnu ,a ~ ,v
based on historical data ~d the best infection a_v.ailable. _. .- -- '- -.-~lian~ with
B. A person who fas.Is, refuses or neglects to fie a severance, mx .z~u..~.~,j ,~.,,,~, __-,::. _,
this chapt~ shall, in addition to any other penalties provided by law, be liaMe tot a penat~, os
ten percent (I0~) of the lax,
~ 14.04Q Severano~ tn= mmt"n verification. The mayor may: . ·
~.' ,~ .... :....,,,,~[, ~njmted in natUral resource extraction, production, or
f natural resources taxed under
the urchasm' o
an agent or employee of the person, or p
c~pter to fumtsh any additional information reasonably necessary to compute the amount of the
t~x, or to de~. ing if a tax is due; _ . .
and compel thc attendance of witnesses and the producuon et oeo , records, and papers of any
lmson; and
D. Make an investigation or hold any inquiry reasonably necessary to a disclosu~ of facts
as to; 1. the amount of extraction or production of a natural resource of an extmotor,
producer or seller;
2. the purchaser of thc natural resource; and :
3. transporta~on of the resource. .
5.14.050 ConfidentialitY. Information and .materials m the possession of the.
-..- -,[' ,---'-,--. --*'.-,,'----of tho business or affai~ of the payer of tax._es, unde~ th_is
which msctosc um lau~s~.,~,~-.,,. -- : ~cisl invcs lloll
_~,, s... ~...,, ,,,,nfldenttal by the I~orough except m connection with an o .... Ugh._,
w~ ov-~t,-,.-' ' · b rou or of the stale or
· Borou h or other agency enforcing th.e laws of the o ? ...... ,.__.~,
g~;vernmengt. Thc borough may publish statistics in a manner wmc. prevents laenttt-tcanon or
NO, '9072828815
particular returns, and may publish tax lists sho.w.~.S th~ nan?s,.taxcs., penalties and interest
respect to taxpayers who arc delinquent to asstst m the collection or' taxes.
· ,a ~ llshilitv for ~nd coll~*_;on of severanm tax. Thc purchas~ or processor ofthe
,~__mu~~-~,d~.r this chapter ~s-~)l-, for the 'mou.t Of taxes, interest__ arld. p~ll. altt~
;Ilh';'t~"~t~-~.l,-with pmaltl~'a~d interest, may be collected in a persona action orougbt m
the name of tho borough.
$.14.0T0 Penalties and interest. All taxes due under this chapter but not timely paid ms.
a~tui~d are subject to a pcnatty .of ~ percent (10W) ot' the tax due. Zn~est shall accrue on the
tax due including penaltl~ ~d Mm'est at tho rat~ of ~fte~n lx~rcent (15 .~) per_
dat~ such taxes am du~, Pargal payments shall I~ applied trst m accru~ ..p~. _ties
then to interest and the. n to principal, A payment is timely paid when mailed to the Borough'
postage prepaid bearin~ a postmark date no later than the due date.
5.14.080 Definitions, In this chapter:
A. "Oross production value" means the value per unit at the point of scvelance multiplied
by the number of reco~ units of the natural resources sold during the calendar qualtec.
B. "Severer or H~" means a person, ~ompany, corporation or other entity engaged
in the business of severing or harvesting natural resources. This inclu.d~ offshore procossors' of
fish products who pxocess, deliver, catch, or receive fish products within the boundaries of the.
r "~.t,mdm' Ouartor" means any One of the followin~ three-month periods _bo~S~ul.Y
January 1-March 31, April 14tree 30. . . . .., ...
D. 'Recovered Umts* means all units mined, felled, extracteo, or remov~ wnem~
produced direotly or cont~actual!y during the period of production.
E. "Point of Severance" for purposes of computing the tax is defined as the dock or
delivered for processing within thc boroush.
Ordlmno~ ~-3~
.~,ction 3, That this. o~~'~ take e,ffec~ ,,t":tl:S9 p,m,). 0ri. December'31, 1992.
· TI~" ... ,,, ' DAY'OF _ii "~':i" ~.,,"~'" '"' '.:'. ";,,,'.,. ~ _i~." ~.'., ": .", l~J,.: ' ....
Betty J. Oliok, Assembly Pruldent. '