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: _________________________