CITY OF HOMER
HOMER, ALASKA
Novak/Roberts
ORDINANCE 08-59
AN ORDINANCE OF THE
CITY COUNCIL OF HOMER, ALASKA, CONTINUING THE LEVY OF A SALES TAX UNDER HCC
9.16.010 ON SALES OF NONPREPARED FOODS IN THE CITY OF HOMER, BUT REDUCING THE
RATE OF THE SALES TAX LEVIED ON NONPREPARED FOODS UNDER HCC 9.16.010(a) FROM 3.0%
TO 1.5% DURING THE PERIOD FROM SEPTEMBER 1ST THROUGH MAY 31ST
.
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, It is in the City’s best interest to continue levying on
sales of nonprepared foods the consumer’s sales tax authorized by HCC
9.16.010(a), but to reduce the rate of the tax during the period from September
1st through May 31st from 3.0% to 1.5% to alleviate the
cost imposed on the City’s residents and visitors during those months; and
WHEREAS, It is in the City’s
best interest to continue levying on sales of nonprepared foods throughout the
year the additional consumer’s sales tax in the amount of three-quarters
percent (3/4%) authorized by HCC 9.16.010(b), and the additional consumer’s
sales tax in the amount of three-quarters percent (3/4%) authorized by HCC
9.16.010(c);
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 nonprepared food items on
a year-round basis notwithstanding Kenai Peninsula Borough Initiative Ordinance
2008-01.
Section 2. Section 9.16.010 of the Homer City Code is hereby amended by adding the following:
9.16.010 Levied. The following are exempt from the Homer sales
tax:
a. A consumer’s sales tax in the amount of
three percent is levied by the City on all sales, rents and services within the
City except as the same may be otherwise exempted by law; provided that
the rate of sales tax on nonprepared food items shall be 1.5% during the period
from September 1 through May 31.
This reduced tax rate
imposed on nonprepared foods items shall no longer be effective if the
Borough’s exemption of nonprepared foods from its sales tax is repealed or
overturned. As used in this subsection,
the term “nonprepared foods” shall have the meaning ascribed to that term in Chapter
5.18 of the Kenai Peninsula Borough Code, as the same may be amended from time
to time.
b. An additional consumer’s sales tax in
the amount of three-quarters percent (3/4%) is hereby levied by the City of
Homer on all sales, rents and services within the City except the same may be
otherwise exempted by law, for the purpose of funding debt retirement of the
sewer treatment plant improvements, and to the extent revenues from such tax
exceed such debt retirement obligations, for the purpose of funding water and
sewer systems.
c. An additional consumer’s sales tax in
the amount of three-quarters percent (3/4%) is hereby levied by the City of
Homer on all sales, rents and services within the City except the same may be
otherwise exempted by law, for the purpose of funding of street reconstruction
improvements and related utilities, construction of new local roads, and
construction of new local trails.
Section 3. This ordinance is of a permanent and general
character and shall be included in the city code.
Section
4. This ordinance shall take effect January 1,
2009.
ENACTED BY THE CITY COUNCIL OF THE CITY OF HOMER, ALASKA, this _____
day of _______________________, 2008.
CITY OF HOMER
_____________________________
JAMES C. HORNADAY, MAYOR
ATTEST:
______________________________
JO JOHNSON, CMC, CITY CLERK
AYES:
NOES:
ABSTAIN:
ABSENT:
First Reading:
Public Reading:
Second Reading:
Effective Date:
Reviewed and approved as to form:
Walt Wrede, City Manager Thomas
F. Klinkner, City Attorney
Date: _________________________ Date: _________________________