MEMORANDUM

TO: Timothy Navarre, Assembly President

Members, Kenai Peninsula Borough Assembly

THRU: Dale Bagley, Mayor

FROM: Shane Horan, Assessor

Jeff Sinz, Finance Director

Colette Thompson, Borough Attorney

DATE: November 8, 2001

SUBJECT: Ordinance 2001-44

The borough code currently exempts watercraft registered through the U.S. Coast Guard (USCG), issued an ADF&G number, or documented through the U.S. or foreign governments from ad valorem property taxes. In 2001, the State of Alaska enacted SCS CSHB 108 (FIN), which, among other provisions, requires the state to register and number certain watercraft instead of the USCG. The accompanying ordinance would adjust the borough code to reflect that watercraft registered through the State of Alaska are not subject to the borough ad valorem taxation and instead are subject to the flat tax imposed in KPB 5.12.150. Shortened hearing is requested in order that this be effective January 1, 2002, which is the tax assessment date.