CITY OF HOMER



HOMER, ALASKA



Ladd. Stark.

ORDINANCE 04-45





AN ORDINANCE OF THE CITY COUNCIL OF HOMER, ALASKA, AMENDING HOMER CITY CODE TO ADD A NEW SECTION 9.04.047, REAL PROPERTY TAX -- EXEMPTION FOR SENIOR CITIZENS, TO ADJUST THE EXEMPTION OF REAL PROPERTY FOR SENIORS LIVING WITHIN THE CITY OF HOMER WHO ARE 65 YEARS OR OLDER ON THE "FIRST $150,000.00 OF ASSESSED VALUE" TO THE "FIRST $200,000 OF ASSESSED VALUE".

WHEREAS, The senior citizen population within the City of Homer is growing significantly and is a large percentage of the total City population; and

WHEREAS, The State of Alaska requires an exemption of real property taxes for seniors who are 65 years of age or older on the first $150,000 of assessed value; and

WHEREAS, Seniors who reside outside the City of Homer and who live in their residence are exempt from paying Kenai Peninsula Borough real property taxes on the FULL value of their residence; and

WHEREAS, The cost of living and purchasing food in Homer is significantly higher than other Kenai Peninsula Borough and Alaska cities such as Kenai, Soldotna, Seward and Kodiak; and

WHEREAS, Many senior citizens within the City of Homer are living on fixed incomes and social security benefits that do not keep pace with the cost of living; and

WHEREAS, The City of Homer recognizes the need to compensate City staff a cost of living adjustment (COLA) in order to assist employees in meeting the higher cost of living in Homer and the Kenai Peninsula Borough; and

WHEREAS, Seniors who are 65 years of age or older who live inside the City of Homer and live in the residence must pay taxes on assessed value of real property for any portion above $150,000; and

WHEREAS, The United States of America Department of Labor, Bureau of Labor Statistics calculates that $150,000 in 1994 has the same buying power as $191,700 in 2004; and









Page Two

Ordinance 04-45

City of Homer

WHEREAS, the assessed value of most homes in the City of Homer has risen in value, which has increased the amount seniors must now pay, thereby significantly reducing the amount they have for living expenses; and creating financial hardships that contribute to health and general welfare issues.

NOW, THEREFORE, BE IT ORDAINED by the City of Homer:

Section 1. That the Homer City Code is hereby amended to add a new Section 9.04.047 RealProperty Tax -- Exemption for Senior Citizens, to read as follows:

9.04.047 Real property tax--Exemption for Senior Citizens.

a. A single parcel of real property owned and occupied as the primary residence and permanent place of abode by a resident 65 years of age or older is exempt from taxation on the first $150,000.00 of assessed value to the first $200,000.00 of assessed value. The limitation to a single parcel shall apply unless the applicant has applied for and received a determination that any additional parcel proposed for exemption qualifies as a subsidiary parcel eligible for inclusion as part of the primary residence and permanent place of abode under state law.

b. Only one exemption may be granted for the same property and, if two or more persons are eligible for an exemption for the same property, the parties shall decide among themselves who is to receive the benefit of the exemption.

c. Real property may not be exempted under this subsection if the assessor determines, after notice and hearing to the parties, that the property was conveyed to the applicant primarily for the purpose of obtaining the exemption.

d. No exemption under this section may be granted except upon written application on a form prescribed by the assessor. The applicant/owner must file the application no later than January 15 of the tax year for which the exemption is sought. A qualified senior citizen need not file such an application for successive tax years if there is no change in ownership, or no change in permanent place of abode by the owner of record. Exemption applications filed after January 15 of the tax year must be accompanied by a signed affidavit stating the reason for the late filing. If a qualified senior citizen files an untimely application, the City Council, may, for good cause shown, waive the claimant's failure to make timely application and authorize the Assessor to accept the application as if timely filed. A late application must be filed not more than three years after the original deadline for filing the application. If a failure to timely file has been waived and the application for exemption is approved, the amount of tax that the claimant has already paid, if any, for the year the property would have been eligible for exemption shall be refunded to the claimant.





Page Three

Ordinance 04-45

City of Homer

1. If property is occupied by a person other than the eligible applicant and his or her spouse and minor children, this exemption applies only to the portion of the property occupied by the eligible applicant and his or her spouse and minor children as a permanent place of abode.

2. It shall be the responsibility of every person who obtains an exemption under this section to notify the borough assessor of any change in ownership, residency, or permanent place of abode. Property owners shall notify the borough when the requirements for exemption are no longer met.

3. It shall be the responsibility of every person who obtains a property tax exemption under this chapter to notify the borough assessor of any change in ownership, property use, residency, permanent place of abode, or other factor affecting qualification for the exemption. If the assessor determines that the property is not eligible for this exemption, all taxes, penalty, and interest due on the property for all tax years beginning with the year the property should have been subject to taxation shall be immediately due and owing.

e. The assessor may presume that property has not been occupied as a primary residence and permanent place of abode if the applicant occupied it for less than 183 days during the previous year unless the applicant provides satisfactory evidence that the failure to meet this requirement did not involve occupancy of another dwelling as a primary residence and permanent place of abode.

f. For the purposes of this section, the terms "real property", "own and occupy", "permanent place of abode", "subsidiary parcel", shall have the meanings given to them in the Kenai Peninsula Borough Code Section 5.12.105(F).

g. For purposes of this section, the term "resident" means a person who has a permanent place of abode in the City, and who, when absent, intends to return to the City.

h. For purposes of this section, "senior citizen" means a person who is 65 or older before January 1 of the exemption year.

Section 2. This is a general ordinance of a permanent nature and shall be included in the City Code.

Section 3. This Ordinance is effective January 1, 2005.

PASSED AND ENACTED by Homer City Council this ________ day of _________, 2004.











Page Four

Ordinance 04-45

City of Homer





CITY OF HOMER



_______________________

JACK CUSHING, MAYOR

ATTEST:



____________________________________

MARY L. CALHOUN, CMC, CITY CLERK

Introduction:

Public Hearing:

Second Reading:

Effective Date:

Ayes:

Noes:

Abstain:

Absent:

Reviewed and approved as to form and content:

______________________________ ________________________

Walt E. Wrede, City Manager Gordon Tans, City Attorney



______________________________ ________________________

Date Date

Fiscal Note:

jj