CITY OF KING COVE

CITY OF KING COVE ORDINANCE 14-06 AN ORDINANCE OF THE CITY OF KING COVE INCREASING THE SALES AND USE TAX LEVY BY 2% AND SUBMITTING A PROPOSITION TO THE VOTERS FOR RATIFICATION AT AN ELECTION WHEREAS, King Cove Code of Ordinances Section 5.20.115 currently levies a 2 percent sales tax on the sale of raw seafood products and a four percent sales tax on all other sales, rents, and services, and Section 5.20.120 levies a use tax of four percent; and WHEREAS, it is necessary to generate additional revenue for purposes relating to services, health and welfare of the City and for the continuing administration of the City’s general government functions at an acceptable level; and WHEREAS, additional revenues can be generated by increasing the sales and use tax rate of levy by one percent; and WHEREAS, an increase in the rate of levy of sales and use tax must be approved by the voters at an election; and WHEREAS, the City Council did not intend by the adoption of Ordinance 05-04 to modify or repeal any part of the previously enacted and codified Chapter 7.25; now, therefore NOW, THEREFORE BE IT ENACTED BY THE COUNCIL OF THE CITY OF KING COVE: Section 1. Section 5.20.115 of the Code of Ordinances of the City of King Cove Cod is hereby amended to read as follows: A. Except as provided in subsection B there is levied a sales tax of four six percent on all sales in the City of King Cove and on all rents, and on all services, made or rendered within the City, measured by the gross sales price of the seller. B. This tax increase does not apply to the existing 2% raw seafood products delivered by the seller to a buyer in the City including raw seafood products delivered by means of a tender to a processor of raw seafood products for processing in the City. Section 2. Subsection A. of Section 5.20.120 of the Code of Ordinances of the City of King Cove, Alaska, is hereby amended to read as follows: A. There is levied and shall be collected a use tax of four six percent on the processing, storage, consumption or other use of property within the City if such property has not been the subject of a transaction otherwise taxable under this chapter. The tax shall be levied and collected in an amount equal to four six percent of the value of the property used. Section 3. Section 5.20.210 of the Code of Ordinances of the City of King Cove, Alaska Code is hereby amended to read as follows: The tax to be added to the sales price of sales taxable at three two percent pursuant to subsection 5.20.115 (B) shall be in accordance with the following schedule: Price Tax Price Tax $0.01 - $0.32 $0.00 $0.01 - $0.49 $0.00 $0.33 - $0.65 $0.01 $0.50 - $0.99 $0.01 $0.66 - $0.99 $0.02 $1.00 - $0.49 $0.02 $1.00 - $1.32 $0.03 A. The tax to be added to the sales price, charge or rental of sale, rents and services taxable at the rate of four six percent pursuant to subsection 5.20.115(A) and subsection 5.20.120(A) shall be in accordance with the following schedule: Price Tax Price Tax $0.01 - $0.24 $0.00 $0.01 - $0.16 $0.00 $0.25 - $0.49 $0.01 $0.17 - $0.33 $0.01 $0.50 - $0.74 $0.02 $0.34 - $0.49 $0.02 $0.75 - $0.99 $0.03 $0.50 - $0.66 $0.03 $1.00 - $1.24 $0.04 $0.67 - $0.83 $0.04 $0.84 - $0.99 $0.05 $1.00 - $1.16 $0.06 Section 4. Sections 1 through 3 of this ordinance shall take effect only if the qualified voters of the City of King Cove approve the following question at the next Regular City Election to be held on Tuesday, October 7, 2014. The question shall read as follows: PROPOSITION NO. 1 ONE PERCENT INCREASE IN SALES AND USE TAX Shall the City of King Cove sales and use tax levy be increased by 1% (to total 5%)? Yes____ No ____ Section 5. If the proposition is approved by the voters, sections 1 through 3 of this ordinance shall take effect January 1 2015. If the proposition is not approved by the voters, sections 1 through 3 of this ordinance will not take effect. Section 6. If this proposition is approved by the voters, sections 1 through 3 of this ordinance shall be of a permanent and general character and shall be included in the City Code. PASSED AND ADOPTED by the City Council of the City of King Cove this ____ day of _____, 2014. _______________________ Henry Mack, Mayor ATTEST: ___________________ Savannah Yatchmeneff City Clerk AYES ____ First Reading 06-04-2014 NAYS ____ Public Reading 06-04-2014 ABSTAINED ____ Second Reading ____ ABSENT ____ Effective Date ____