CITY OF HOMER
HOMER, ALASKA
Wythe, Yourkowski,
City Manager
A RESOLUTION OF THE HOMER CITY COUNCIL URGING THE KENAI PENINSULA BOROUGH ASSEMBLY TO AMEND BOROUGH ORDINANCE 2005-05(S) REGARDING THE PROPOSED TRANSIENT ACCOMMODATION TAX TO PROVIDE FOR AN EQUITABLE DISTRIBUTION AND SHARING OF THE TAX REVENUES WITH CITIES WITHIN THE BOROUGH.
WHEREAS, the Kenai Peninsula Borough Assembly has introduced Ordinance 2005-05(S) entitled “ AN ORDINANCE ENACTING KPB CHAPTER 5.19, PROVIDING FOR A TRANSIENT ACCOMMODATION TAX, AND PROVIDING FOR THE SUBMISSION TO THE VOTERS OF A PROPOSITION AUTHORIZING THE BOROUGH TO IMPOSE THIS TAX.” and
[WHEREAS, Ordinance 2005-05 (S),
as presently written, does not provide a mechanism to share anticipated new tax
revenues with cities located within the Borough, and]
WHEREAS,
Ordinance 2005-05 (S), as presently written, does not provide a mechanism for [permit]
cities to levy their own transient accommodations tax; and [and
to have that levy deducted from the Borough’s rate of levy, and]
WHEREAS, the Cities of Homer, Seward, Seldovia, Kenai, and Soldotna provide a very large proportion of the services, including accommodations, that visitors to the Kenai Peninsula enjoy, and
[WHEREAS,
a uniform tax rate throughout the entire Borough is important because it avoids
confusion for tourists and it prevents businesses located outside of City
Boundaries from having a competitive advantage over those that are located
within Cities, and]
WHEREAS, Businesses that will be charged with levying these taxes would want the revenue reinvested into promoting growth in the Visitor’s industry; and
Page Two
Resolution 05-28(A)
City of Homer
WHEREAS,
the City of Homer has considered levying its own transient accommodations tax
in recent years but has[ delayed action, in large part, because it believed
that this type of tax should be levied by the Borough and should be uniform
throughout the Borough, and] been legally unable to levy such a tax;
and
WHEREAS,
Ordinance 2005-05(S), as presently written, could [would]
have an [very] adverse financial impact[s] upon the
[City of Homer because it would effectively preclude the community from levying
a transient accommodations tax in the future. ] Peninsula Cities, which already have sales taxes.
NOW
THEREFORE BE IT RESOLVED, that Homer City Council hereby recommends that the
Borough Assembly amend Ordinance 2005-05 (S) to allow
municipalities to levy their own accommodations tax [and have the full
amount deducted from the Borough tax], and
BE IT FURTHER
RESOLVED, the Council recognizes that the Borough and the Cities within it are
all facing budget challenges and it urges the Assembly to work cooperatively
with Cities to solve these problems by mechanisms such as looking at
other uncaptured revenues.[ in
the best interest of all Borough residents.]
PASSED AND ADOPTED by a duly constituted quorum of the City Council of Homer, Alaska, this 29th day of March, 2005
CITY OF HOMER
JAMES C. HORNADAY, MAYOR
ATTEST:
MARY L. CALHOUN, CMC, CITY CLERK
Fiscal Impact: NA