MEMORANDUM

TO: Timothy Navarre, Assembly President

Members, Kenai Peninsula Borough Assembly

FROM: Gary Superman, Assembly Member

Ron Long, Assembly Member

DATE: November 29, 2001

SUBJECT: Ordinance 2001-46, amending KPB 5.12.112 to allow an exemption from property taxes for the increase in assessed value of improvements to real property that enhance the exterior appearance or aesthetic quality of the land or structure

This ordinance would allow property owners to obtain, for a maximum of four years, an exemption from property taxes for the increase in value attributed to certain improvements. These improvements must enhance the exterior appearance or aesthetic quality of the land or structures. The borough code currently authorizes this exemption only for properties adjacent to anadromous streams and that otherwise qualify for the anadromous stream tax credit. According to the borough assessor, to date the borough has received four applications for the existing exemption, which have resulted in a total assessed value of $17,800 qualifying for the exemption. This equals roughly $200 in exempted taxes. The proposed ordinance expands that exemption so that it is available to all taxable property in the borough.

The ordinance also establishes procedures that will assist the administration in implementing this exemption. It would require an inspection prior to and after the improvements are constructed in order that the assessing department may properly determine the improvements subject to the exemption. A goal of this exemption is to encourage property owners to improve the exterior appearance of their property by eliminating any associated increase in property taxes for a maximum of four years.