Resolution 16-068 Support Borough Ordinance 2016-16 for Sales Tax Cap and Sales Tax Exemption of Residential Rents

CITY OF HOMER
HOMER, ALASKA

Mayor/Council

RESOLUTION 16-068

A RESOLUTION OF THE CITY COUNCIL OF HOMER, ALASKA, EXPRESSING SUPPORT FOR KENAI PENINSULA BOROUGH ORDINANCE 2016-16, SUBMITTING TO THE VOTERS A BALLOT PROPOSITION THAT INCREASES THE SALES TAX CAP FROM $500 TO $1,000 AND EXEMPTS RESIDENTIAL RENTS FROM SALES TAX.

            WHEREAS, The decline in state programs and financial assistance to municipalities resulted in cuts to the City of Homer operating budget and suspension of dedicated sales tax for roads, HART, until 2019 to cover the gap; and

WHEREAS, Kenai Peninsula Borough Ordinance 2016-16 increases the sales tax cap from $500 to $1,000 borough-wide and exempts residential rent from sales tax, subject to voter approval; and

WHEREAS, The Kenai Peninsula Borough estimates that the increase in sales tax cap coupled with the exemption of residential rent would generate approximately $190,000 in increased sales tax returns for the City of Homer; and

               WHEREAS, Small revenue increases from multiple sources, combined with careful spending will be needed to balance the budget by 2019; and

             WHEREAS, The sales tax cap has not been adjusted in over 50 years; and

WHEREAS, Increasing the cap Borough-wide keeps the playing field level for peninsula businesses.

              NOW, THEREFORE, BE IT RESOLVED that the City Council of Homer, Alaska, expresses support for KPB Ordinance 2016-16, submitting to the voters a ballot proposition that increases the sales tax cap from $500 to $1,000 and exempts residential rent.

             BE IT FURTHER RESOLVED that the Homer City Clerk is instructed to transmit a copy of the resolution to the Kenai Peninsula Borough Mayor and Assembly.

             PASSED AND ADOPTED by the Homer City Council this 13th day of June, 2016.

                                                                                                        CITY OF HOMER
 

________________________
MARY E. WYTHE, MAYOR
 

ATTEST:

______________________________
JO JOHNSON, MMC, CITY CLERK

Fiscal Note: $190,000 increased revenue divided between HART, HAWSP and General Fund.