HomeMy WebLinkAboutResolution No. 2005-03City of Kenai
Suggested by:
City Council
RESOLUTION NO. 2005-03
A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI, ALASKA OPPOSING
KENAI PENINSULA BOROUGH ORDINANCE 2004-36, AN ORDINANCE AMENDING
KPB 5.18.430, SALES TAX COMPUTATION- MAXIMUM TAX, BY INCREASING IT
FROM $500 TO $1000.
WHEREAS, the Kenai Municipal Code 7.10.050 adopts the Borough Sales Tax Code by
reference; and,
WHEREAS, the primary reason a maximum taxable sale provision is in the sales tax
code is to prevent the sales tax from being a competitive disadvantage to Borough
businesses compared to their non-taxable competition from outside the Borough; and,
WHEREAS, increasing the maximum taxable sale from $500 to $1,000 would increase
the total tax on a $1,000 sale made inside the City from $25 to $50; and,
WHEREAS, the sales tax on a $1,000 sale made outside the City but within the
Borough would increase from $10 to $20, which would be $30 less than the same sale
made in Kenai; and,
WHEREAS, the difference in the sales tax on a $1,000 sale made in Anchorage or via
the Intemet, compared to the same sale made within the City would increase to $50;
and,
WHEREAS, these changes in the amount of sales tax on individual sales of $1,000 or
more could put businesses located in the City at a significant competitive
disadvantage to their competition outside the City; and,
WHEREAS, raising the maximum taxable sale from $500 to $1000 may have
unintended impacts on sales tax revenues of the City of Kenai; and,
WHEREAS, the City of Kenai encourages the Kenai Peninsula Borough to investigate
other potential options of raising revenue.
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI,
ALASKA, that:
Section 1' The City Council of the City of Kenai opposes Kenai Peninsula Borough
Ordinance 2004-36, an Ordinance amending KPB 5.18.430, Sales Tax Computation-
Maximum Tax, by increasing it from $500 to $1000.
Section 2' That this resolution be sent to Gary Superman, the President of the Kenai
Peninsula Borough Assembly through the Borough Clerk for consideration by the
Assembly when Ordinance 2004-36 is heard.
Resolution No. 2005-03
Page 2
PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this second day of
February, 2005.
PAT PORTER, MAYOR
ATTEST:
Carol L. Freas, City Clerk
Approved by Finance'
(9/21 / 2004) hl