CITY OF HOMER Finance
HOMER, ALASKA City Clerk
RESOLUTION 03-68
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HOMER, ALASKA OBJECTING TO KENAI
PENINSULA BOROUGH ORDINANCE NO 2003-11 TO AMEND THE BOROUGH SALES TAX CODE TO EXEMPT
A PORTION OF GASOLINE AND DIESEL FUELS FROM SALES TAX.
WHEREAS, the Kenai Peninsula Borough Assembly is considering their Ordinance No. 2003-11, to amend the Borough
Sales Tax Code to exempt a portion of gasoline and diesel fuels from sales tax; and,
WHEREAS, estimated revenue impacts associated with exempting that portion of the retail cost of oil and gas generated
by State and Federal taxes will result in a reduction of approximately $329,163 or 18% of the sales tax revenues generated
from the retail sale of oil and gas products on the Kenai Peninsula; and,
WHEREAS, analysis by the Borough of sales tax data for FY 2002 indicates the following impacts to the revenue of the
cities of the Kenai Peninsula:
| Municipality | KPB Ordinance
2003-11 Impacts |
| City of Kenai | $21,947 |
| City of Soldotna | 30,598 |
| City of Seward | 16,174 |
| City of Seldovia | 1,749 |
| City of Homer | 27,698 |
; and,
WHEREAS, during a distressing economic recession when cities are struggling to meet their fiscal responsibilities,
maintain programs, and cope with continuous unfunded mandates, it is bad public policy to further hamper them by
instituting another exemption and thereby pressuring municipalities to incorporate the exemption into their municipal code,
knowing the financial impacts the exemption will have on their revenues, programs and citizenry; and,
WHEREAS, adoption of Kenai Peninsula Borough Ordinance No. 2003-11 will force some cities to cut needed city
services or increase taxes or other sources to make up the lost revenue.
City of Homer
Resolution 03-68
Page 2
NOW, THEREFORE BE IT RESOLVED that the City Council of Homer, Alaska, objects to Kenai Peninsula Borough
Ordinance No. 2003-11 to amend the borough sales tax code to exempt a portion of gasoline and diesel fuels from sales tax.
PASSED AND ADOPTED by the Homer City Council this 12th day of May, 2003.
CITY OF HOMER
____________________________________
JACK CUSHING, MAYOR
ATTEST:
_______________________________________
MARY L. CALHOUN, CMC, CITY CLERK
Fiscal Note: Revenue Impact