CITY OF HOMER

City Manager

HOMER, ALASKA

ORDINANCE 01-53(S)

AN ORDINANCE OF THE CITY OF HOMER EXTENDING ORDINANCE 98-03(A), AMENDING HOMER CITY CODE CHAPTER 9.04 TO CREATE A $100,000 PERSONAL PROPERTY TAX EXEMPTION, TO EXEMPT CERTAIN MOTOR VEHICLES FROM PERSONAL PROPERTY TAX, AND TO LEVY A FLAT TAX ON CERTAIN WATERCRAFT, SCHEDULED TO SUNSET DECEMBER 31, 2001.

WHEREAS, Ordinance 98-03(A) was adopted February 23, 1998 and included a sunset date of December 31, 2001 to facilitate the Council's review as to the continuation of this Ordinance; and

WHEREAS, adoption of this Ordinance will extend Ordinance 98-03(A) without any sunset clause.

NOW, THEREFORE, THE CITY OF HOMER ORDAINS:

Section 1. Homer City Code section 9.04.042 is hereby reenacted without sunset to read as follows:

09.04.042 Annual tax levy - registered watercraft. Except as provided below, for purposes of taxation, watercraft for which the USCG certificate of number, U.S. or foreign documentation or registration document, Alaska Division of Motor Vehicles registration number, or the ADF & G number have been issued, or other watercraft subject to a tax shall be totally exempted from ad valorem taxes, and shall be taxed in accordance with the following flat tax schedule. For purposes of taxation, U.S. Coast Guard registered watercraft subject to a tax shall be totally exempt from tax levied under Section 9.04.040, and an annual tax in lieu thereof is hereby levied in accordance with the following flat tax schedule. Watercraft shall be measured according to length overall.

Watercraft Flat Tax Schedule

Class Watercraft Length Overall Annual Tax

1 less than 15 feet $ 0

2 15 to less than 20 feet $ 0

3 20 to less than 25 feet $ 10

4 25 to less than 36 feet $ 30

5 36 to less than 60 feet $ 50

6 60 to less than 100 feet $ 100

7 100 feet or more $ 200

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Ordinance 01-53(S)

City of Homer

b. Watercraft for which all certificates of number, registration, or documentation, or other form of maritime licensing or registration and the ADF & G number, if applicable, have been surrendered to the issuing authority by January 1 of the tax year shall be taxed on an ad valorem basis. Vessels for which such registration or licensing has lapsed but has not been surrendered shall not qualify for ad valorem taxation.

c. A vessel owner may appeal the determination of the borough assessor under this section, using the procedures set out in KPB 5.12.050-060.

Section 2. Homer City Code Section 9.04.046 is hereby reenacted without sunset to read as follows:

9.04.046 Real and personal property tax--Exemptions. a. The following property is exempt

from the real and personal property tax imposed by this chapter:

1. the first $100,000 of assessed valuation of personal property, other than motor

vehicles and watercraft, owned by each taxpayer; for taxpayers with more than one personal property

tax account, this exemption shall be distributed pro rata among all of the taxpayer's accounts based

on the proportion of the assessed value in each account to the total assessed value of that taxpayer's

personal property;

2. motor vehicles that are subject to a motor vehicle registration tax imposed by

Kenai Peninsula Borough Code chapter 5.12, and as the same may be thereafter amended, revised,

or replaced.

b. This section shall be applied and construed to effectuate its general purpose to make

uniform the laws of the City and the Kenai Peninsula Borough with respect to the exemptions

granted by this section.

Section 3. Section 5 of Ordinance 98-03(A), providing for repeal of the provisions of Ordinance 98-03(A) on December 31, 2001, is hereby repealed. The provisions of Ordinance 98-03(A), as amended by this ordinance, shall extend indefinitely."

Section 4. This ordinance is of a permanent and general character and shall be included in

the City Code.

ENACTED BY THE CITY COUNCIL OF THE CITY OF HOMER, ALASKA, this _____day of __________, 2001.

CITY OF HOMER

________________________

JACK CUSHING, MAYOR

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Ordinance 01-53(S)

City of Homer

ATTEST:

________________________________

MARY L. CALHOUN, CMC, CITY CLERK

AYES:

NOES:

ABSENT:

ABSTAIN:

First Reading:

Public Hearing:

Second Reading:

Effective date:

Reviewed and approved as to form and content:

______________________________ _____________________________

Ron Drathman, City Manager Gordon J. Tans, City Attorney

Date: ___________ Date: ___________

Fiscal Note: NA