CITY OF HOMER City Manager

HOMER, ALASKA City Clerk

RESOLUTION 03-71

A RESOLUTION OF THE CITY COUNCIL OF HOMER, ALASKA, OPPOSING HOUSE BILL 293 AN ACT LEVYING AND COLLECTING A STATE SALES AND USE TAX AND PROVIDING FOR AN EFFECTIVE DATE.

WHEREAS, House Bill 293 was introduced to the Twenty Third Legislature on April 30, 2003, as an act levying and collecting a State sales and use tax providing an effective date of January 1, 2004; and

WHEREAS, This bill levies a three percent year around statewide sales tax in the State of Alaska in and above that already levied by municipalities; and

WHEREAS, Municipalities would be subject to state tax collection/administration and limited to the exemptions listed in Section 43.44.090 of the bill; and

WHEREAS, The Kenai Peninsula Borough levies a 2% sales tax and the City of Homer levies a 3.5% sales tax for a total of 5.5% sales tax in Homer; and

WHEREAS, Adding an additional 3% sales tax would have significant economic impacts on the City of Homer and other municipalities around the State.

NOW THEREFORE BE IT RESOLVED, that the City of Homer opposes House Bill 293, an act levying and collecting a state sales and use tax and providing for an effective date; and.

BE IT FURTHER RESOLVED, that copies of this resolution will be sent to Governor Murkowski, Lt Governor Leman, Senator Stevens, Representative Seaton, the State House Finance Committee, State House Ways and Means Committee and the Alaska Municipal League.

PASSED AND ADOPTED by the Homer City Council this 12th day of May, 2003.

CITY OF HOMER







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ATTEST: JACK CUSHING, MAYOR



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MARY L. CALHOUN, CMC, CITY CLERK

Fiscal Note: Economic impact, projected loss of revenue due to lowered sales.