MEMORANDUM

TO: Pete Sprague, Assembly President

Members, Kenai Peninsula Borough Assembly

FROM: Gary Superman, Assembly Member

Dale Bagley, Mayor

Paul Fischer, Assembly Member

Milli Martin, Assembly Member

DATE: June 24, 2004

SUBJECT: Ordinance 2004-23, amending KPB 5.12.115 to increase the residential real property exemption from $10,000 to $20,000

As discussed in this ordinance, the Alaska State legislature recently passed Senate Bill 136, which raises the allowable residential exemption from $10,000 to $20,000. As provided in Alaska Statute 29.45.050, any ordinance providing for this exemption must be ratified by the voters at an election. This would offer tax relief and encourage home ownership by borough residents, which is a legitimate governmental interest.