KENAI PENINSULA BOROUGH

ORDINANCE 2006-13 (MAYOR) SUBSTITUTE

AN ORDINANCE AMENDING THE TAX CODE TO INCREASE THE MOTOR VEHICLE TAX

WHEREAS, motor vehicles in the Kenai Peninsula Borough are assessed taxes upon registration as provided by AS 28.10.431 and pursuant to KPB Ordinance 5.12.245; and

WHEREAS, Alaska Statute 28.10.431 enables municipalities to receive taxes collected by the state upon registration of motor vehicles using either the fee schedule included in the statute or a municipal schedule set by ordinance, provided that written notice of any municipal schedule is filed with the state by January 1 of the year preceding the year in which the change is to take effect; and

WHEREAS, notice was sent to the Department of Motor Vehicles by January 1, 2006, that the borough intended to change its fee schedule; and

WHEREAS, the tax collected on motor vehicles is allocated to the borough's general fund, service areas, and the cities of Kenai, Soldotna, Seward, Homer, and Seldovia; and

WHEREAS, AS 28.10.421 provides that a vehicle owned by a person with a disability and registered under AS 28.10.181(d), or by a resident 65 years of age or older who files a written application for an exemption on a form prescribed by the State is not liable for registration fees; and

WHEREAS, the borough code should be updated to reflect this statutory provision; and

WHEREAS, the administration proposes to increase the motor vehicle tax effective January 1, 2007;

NOW, THEREFORE, BE IT ORDAINED BY THE ASSEMBLY OF THE KENAI PENINSULA BOROUGH:

SECTION 1. That KPB 5.12.245 is hereby amended as follows:

A. There is levied a biennial motor vehicle registration tax within the borough pursuant to the provisions of AS 28.10.431 and as such statute may be hereafter amended, revised or replaced, based on the age of the vehicle as determined by model year in the first year of the biennial period, according to the following schedule. The categories under "Type" are intended to coincide with the categories provided in AS 28.10.431(b), as now enacted or as may be hereinafter amended.

MOTOR VEHICLE TAX SCHEDULE
BIENNIAL SCHEDULE

B. Notwithstanding paragraph A of this section, if the owner of commercial vehicles elects to register its vehicles on an annual basis as provided in statute statutes, instead of the biennial motor vehicle registration tax levied under paragraph A, said tax shall be levied on an annual basis for vehicles used for commercial purposes. The annual tax rate shall be as follows:

1. The population of each tax code area (TCA) shall be determined. Population shall be established by the latest figures determined by the Kenai Peninsula Borough and accepted by the State of Alaska Department of [COMMUNITY AND REGIONAL AFFAIRS] Commerce, Community and Economic Development for allocation of state revenue sharing funds, or other reliable data. Where a TCA boundary and the boundary of the most similar area counted for population (usually a voting precinct) do not coincide, an estimate of the population of the dissimilar area shall be made to arrive at the most accurate determination of population of the TCA. The sum of the populations of all TCA's shall equal the total population of the borough.

2. The total receipts shall be apportioned to each TCA based upon its percentage of the total borough population.

3. The receipts apportioned to a particular TCA shall be distributed to the taxing jurisdiction areas (TJA's) which make up that TCA. Such distribution shall be based upon the mill rates of the TJA's compared to the total mill rate of the TCA. The percentage shall be equal to the TJA mill rate divided by the total mill rate for the TCA.

[C] D. One motor vehicle [per household] subject to registration under AS 28.10.421(b)(1), (2), (5), or (6), as now enacted or hereafter amended, owned by a resident 65 years of age or older on January 1st of the assessment year, or by a person with a disability and registered under AS 28.10.181(d), is exempt from the registration tax under AS 28.10.431. An exemption may be granted under this subsection only upon written application on a form prescribed by the department of [public safety] administration.

SECTION 2. That pursuant to AS 28.10.431(i) the administration shall file a written notice of this change in the scheduled amount of tax on motor vehicles with the Alaska Department of [PUBLIC SAFETY] Administration immediately upon enactment of this ordinance.

SECTION 3. That this ordinance takes effect January 1, 2007.

FAILED TO BE ENACTED BY THE ASSEMBLY OF THE KENAI PENINSULA BOROUGH THIS 16TH DAY OF MAY, 2006.