CITY OF HOMER

HOMER, ALASKA

Council

ORDINANCE 06-59 (Previously 05-42)

AN ORDINANCE OF THE CITY COUNCIL OF HOMER, ALASKA, AMENDING HOMER CITY CODE SECTION 9.04.046, REAL AND PERSONAL PROPERTY TAX -- EXEMPTION, TO PROVIDE FOR THE FIRST $20,000.00 OF ASSESSED VALUATION ON OWNER-OCCUPIED PERMANENT RESIDENTIAL PROPERTY TO BE EXEMPT FROM CITY REAL PROPERTY TAX.

WHEREAS, AS 29.45.050(a) authorizes a municipality to exempt $20,000 of the assessed value of residential property from real property taxes; and

WHEREAS, The Kenai Peninsula Borough Code Section 5.12.115, Real Property Tax - exemptions, Residential real property, exempts the first $20,000.00 of assessed valuation of a single parcel of residential real property owned and occupied by the owner of record as the owner's permanent place of residence in the Borough; and

WHEREAS, AS 29.45.050(c) authorizes the City, by ordinance and notwithstanding the voter ratification provision of AS 29.45.050(a), to adjust its property tax structure, in whole or in part, to the property tax structure of the Kenai Peninsula Borough, including but not limited to exempting or partially exempting property from taxation; and

WHEREAS, it is the intent of this ordinance to adjust the City real property tax exemption structure to that of the Kenai Peninsula Borough Code Section 5.12.115 with respect to the $20,000 partial exemption for residential property; and

WHEREAS, home ownership is beneficial to a community because it promotes stability, a sense of commitment to the community, civic responsibility, and a measure of financial independence; and

WHEREAS, A $20,000.00 exemption would initially provide a modest tax reduction in City tax property tax revenues while serving to promote and protect owner-occupied primary residences in Homer;

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

Section 1. That the Homer City Code Section 9.04.046, Real and Personal Property Tax -- Exemption, is hereby amended to add a new subsection to read as follows:

9.04.046 Real and personal property tax--Exemptions.

Page Two

Ordinance 06-59

City of Homer

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. The first $20,000.00 of assessed valuation of a single parcel of residential real property owned and occupied by the owner of record as the owner's permanent place of residence in the City, shall be exempt from the City tax levy on real property within the City of Homer. The borough assessor's determination of whether property in the city qualifies for the borough exemption under Kenai Borough Code Section 5.12.115 shall be determinative of whether the property qualifies for the exemption under this subsection 9.04.046(b).

c. 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. (Ord. 01-53(S), 2001; Ord. 98-3(A) §1, 1998.)

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,[ 2006], 2007.

PASSED AND ENACTED by Homer City Council this ________ day of _________, 2006.

CITY OF HOMER

____________________________

JAMES C. HORNADAY, MAYOR

ATTEST:

____________________________________

MARY L. CALHOUN, CMC, CITY CLERK

Page Three

Ordinance 06-59

City of Homer

Introduction: Previously presented as Ordinance 05-42, deferred on December 12, 2005 to October 9, 2006.

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: 809 Properties applied for a Borough Exemption in 2005. 809 multiplied by $20,000.00 equals $16,180,000.00 in exempt property. $16,180,000 multiplied by the City's mill rate - 4.5 mills equals $72,810.00 in reduced City property tax revenue.

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