Ordinance 15-19(A-2) Repealing the Seasonal Sales Tax Exemption as Applied to Certain Categories of Nonprepared Foods

Summary

An Ordinance of the Homer City Council, Amending Homer City Code Chapter 9.16 to Revise HCC 9.16.040, HCC 9.16.100, and Add HCC 9.16.110 Repealing the Seasonal Sales Tax Exemption as Applied to Certain Categories of Nonprepared Foods, Including But Not Limited to Cakes, Cookies, Ice Cream, Candy, and Chips, and Defining These Items as Prepared Foods. Lewis.

Ordinance/Resolution ID: 
15-19(A-2)
Ordinance/Resolution Status: 
Adopted
Introduction Date: 
06/15/2015
Effective Date: 
07/28/2015
File Attachments: 
Public Hearing Date: 
06/29/2015
Second Reading Date: 
06/29/2015

Details

CITY OF HOMER
HOMER, ALASKA

Lewis

ORDINANCE 15-19(A-2)

 

 

AN ORDINANCE OF THE HOMER CITY COUNCIL, AMENDING HOMER CITY CODE CHAPTER 9.16 TO REVISE HCC 9.16.040, HCC 9.16.100, AND ADD HCC 9.16.110 REPEALING THE SEASONAL SALES TAX EXEMPTION AS APPLIED TO CERTAIN CATEGORIES OF NONPREPARED FOODS, INCLUDING BUT NOT LIMITED TO CAKES, COOKIES, ICE CREAM, CANDY, AND CHIPS, AND DEFINING THESE ITEMS AS PREPARED FOODS.

 

WHEREAS, A proposition was passed by the voters in the Kenai Peninsula Borough (“Borough”) exempting nonprepared foods from sales tax from September 1st through May 31st; and

 

WHEREAS, The Borough adopted Ordinance 2008-28 authorizing cities within the Borough, including the City of Homer (“City”), to continue taxing nonprepared foods during the period from September 1st through May 31st despite the Borough’s exemption of such foods from sales tax during those months; and

 

WHEREAS, The City enacted Ordinance 08-32(S)(A-2) on December 8, 2008 exempting the sales of nonprepared foods from City sales tax during September 1st through May 31st of each year; and

 

WHEREAS, The loss of sales tax revenues on the sale of these items has had a substantial negative impact on funding for essential City services including but not limited to water, sewer, and road project matching funds and has required the almost complete elimination of all non-essential City services; and

 

WHEREAS, It is in the City’s best interest to reinstate the sales tax at the full 4.5% rate on a year-round basis on the categories of foods described in Homer City Code 9.16.100(c), enacted by this ordinance, to provide funding for City services.

 

THE CITY OF HOMER HEREBY ORDAINS:

 

Section 1.         The City of Homer exercises the authority granted it under Kenai Peninsula Borough Ordinance 2008-28 to levy and collect sales taxes on the food items described in Homer City Code 9.16.100(c), enacted by this ordinance, on a year-round basis notwithstanding Kenai Peninsula Borough Initiative Ordinance 2008-01.

 

Section 2.         Homer City Code 9.16.040 is amended to read as follows:

 

9.16.040  Borough Provisions Adopted by Reference.  Subject to Section 9.16.100 and 9.16.110, those sections of the Kenai Peninsula Borough Code of Ordinances applicable to the levy and collection of the sales tax described in this chapter are incorporated by this reference and made a part of this chapter as though fully set forth in this chapter.

 

               Section 3.         Homer City Code 9.16.100 is amended to read as follows:

 

9.16.100 Exemptions.

 

The following sales of items are exempt from sales tax:

 

a. Except as provided in section 9.16.110 of the city code, sales of nonprepared food items occurring from September 1st through May 31st of each year.

 

b.  The sale of all other items granted exemption from sales tax under the Kenai Peninsula Borough Code as amended from time to time, except where the Kenai Peninsula Borough by ordinance expressly authorizes the City to tax a source exempted from sales tax by the Kenai Peninsula Borough Code and City imposes a sales tax on that source in compliance with the law.

 

Section 4.  Homer City Code Chapter 9.16 is amended to add section 9.16.110 to read as follows:

 

9.16.110 Sales Tax

 

Sales of the following prepared food products shall be subject to sales tax 365 days a year:

 

a. beverages containing less than 50% fruit or vegetable juice, including soft drinks, energy drinks and sports drinks, but excluding dairy and dairy substitute beverages;

 

b. candy;

 

c. potato and corn chips, pretzels, crackers and other ready-to-eat snack foods;

 

d. ready-to-eat baked products, including cookies, cake, donuts, danish, and muffins, but excluding bread;

 

e. ice cream, sherbet and other frozen desserts;

f. prepackaged or made-to-order sandwiches, wraps and salads.

 

Section 5.         This ordinance is of a permanent and general character and shall be included in the city code.

 

Section 6.         This ordinance shall take effect January 1, 2016.

 

ENACTED BY THE CITY COUNCIL OF HOMER, ALASKA, this 27th day of July, 2015.

                                                                                                                       

                                                                                                         CITY OF HOMER

 

 

                                                                                                         ____________________

                                                                                                         MARY E. WYTHE, MAYOR

 

ATTEST:

 

 

___________________________

JO JOHNSON, MMC, CITY CLERK

 

YES:

NO:

ABSTAIN:

ABSENT:

 

 

 

First Reading:

Public Hearing:

Second Reading:

Effective Date:

 

 

 

 

Reviewed and approved as to form:

 

___________________________                                      ____________________________

Mary K. Koester, City Manager                                           Thomas F. Klinkner, City Attorney

 

Date: ___________________ ___                                      Date: _______________________