CITY OF HOMER

HOMER, ALASKA

Heimbuch

RESOLUTION 08-50

 

A RESOLUTION OF THE CITY COUNCIL OF HOMER, ALASKA, CALLING FOR THE KENAI PENINSULA BOROUGH TO EXAMINE THE SITUATION WITH INDIRECT RESALE OF FUEL/OILS FOR THE CHARTER AND TOURISM VESSEL INDUSTRY WHICH RESULTS IN SALES TAX BEING LEVIED TWICE.

 

            WHEREAS, People in the marine charter and tour industry purchase fuel in the City and Borough for use in their vessels and pay sales tax thereon; and

 

            WHEREAS, The cost of that fuel is significant and included in the charter prices paid by customers on those vessels; and

 

            WHEREAS, Charter/tour operators are required to pay sales tax on that fuel for a second time as part of the proceeds paid to them by their customers; and

 

            WHEREAS, The City and Borough should examine the validity of double taxation on goods and services tendered within their boundaries; and

 

            WHEREAS, The Borough utilizes tax mechanisms on items for re-sale in order to levy the tax burden appropriately.

 

            NOW, THEREFORE, BE IT RESOLVED that the City Council of Homer asks the Kenai Peninsula Borough to examine the fairness of the sales tax policy on fuels purchased by charter and tourism vessels and resold indirectly to their customers, in which both transactions are subject to sales tax.

 

           PASSED AND ADOPTED by the Homer City Council this 14th day of April, 2008.

                                                                        

                                                                                    CITY OF HOMER

 

 

 

                                                                                     _____________________________

                                                                                    JAMES C. HORNADAY, MAYOR

ATTEST:

 

 

______________________________

JO JOHNSON, CMC, CITY CLERK 

 

 

Fiscal Note: N/A