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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.