MEMORANDUM

TO: Pete Sprague, Assembly President

Members, Kenai Peninsula Borough Assembly

FROM: Paul Fischer, Assembly Member

DATE: March 5, 2003

SUBJECT: Ordinance 2003-11, Amending the sales tax code to exempt a portion of gasoline and diesel fuels from sales tax

Retail gasoline prices include amounts paid by distributors for state and federal excise taxes. These amounts are subject to the borough sales tax. Exempting from sales taxes an amount equal to the state and federal excise taxes paid by distributors would provide some relief from taxes for the consuming public. This ordinance would provide for such an exemption.