HomeMy WebLinkAboutOrdinance No. 2163-2006Suggested by: Administration
CYTY OF KENAY
ORDINAPICE NO. 2163-2006
AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, ENACTING
KMC 7.05.035, ADOPTING A COMMUNITY PURPOSES PROPERTY TAX EXEMPTION
AS AUTHORIZED BY AS 29.45.050.
WHEREAS, AS 29.45.050(b)(1)(A) authorizes municipalities to enact a Community
Purposes Property Tax Exemption; and,
WHEREAS, that exemption would provide the City of Kenai a property tax exemption
for property of an organization not organized for business or profit-making which is
used exclusively for community purposes if the income from the property does not
exceed the actual cost to the owner of use by the renter; and,
WHEREAS, such an exemption would help non-profit entities that are providing
services to the community by providing property tax relief to them; and,
WHEREAS, the Kenai Peninsula Borough and the City of Soldotna have adopted such
an exemption; and,
WHEREAS, it is in the best interest of the City of Kenai to enact a Community
Purposes Exemption.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI,
ALASKA that KMC 7.05.035 entitled Community Purposes Exemption is enacted as
follows:
7.05.035 Community purposes exemption.
Property of an organization not organized for business or profit-making
purposes and used exclusively for community purposes is exempt from
t~ation under this chapter. Property or a part of the property from
which rentals or income are derived is not exempt from taxation unless
the income derived from the rentals does not exceed the actual cost of
the owner of the use by the renter.
PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 17th day of May,
2006. ~ (/C~(.iL../ ~G~~L/
PAT PORTER, MAYOR
Ordinance No. 2163-2006
Page 2 of 2
ATTEST:
~~,~r~ °c ~%~.~/
Carol L. Freas, City Clerk
Introduced: May 3, 2006
Adopted: May 17, 2006
Effective: June 17, 2006
EI`VIOlZAI~TDUM
TO: ~ Mayor Pozler and the Kenai City Council
PROM:C~, Cary R. Graves, City Attorncy
DATE: April26, 2006
RE: Community Purpose Exemption
During the during the last discussion on this issue, Councilor Swarner asked a question regarding
the application of this exemption to the old Kenai Suppiy building, now owned and occupied by
the Satvation Army. The question was whether the SalvaLion Army couid receive the exeinption
whife it owned khe buildiug but before its opeiations were moved there.
F posed the question to Shane Horan, the KPB Assessor. He informed me that the property did
not receive the exeinption while vaoant. it only received the exemption after the Satvation Army
moved into the facility and used it He also sCaCed that fhe thrift store portion does not receive
the exemption (and is taxable) because that portion of fhe building is usecl for a"dominanC pcofit
motive."
Please let me la~ow if you have any questions.