MEMORANDUM

TO: William R. Popp, Assembly President

Members, Kenai Peninsula Borough Assembly

FROM: Drew Scalzi, Assembly Member

Jack Brown, Assembly Member

Chris Moss, Assembly Member

DATE: March 9, 2000

SUBJECT: Ordinance 2000-16 deleting sunset clause in Ordinance 97-73

Ordinance 97-73, which provided the $100,000 personal property tax exemption, set a flat tax for watercraft, and increased motor vehicle taxes, has made the administration of personal property taxes much more cost effective and has significantly increased maritime business in the borough. The ordinance was originally enacted with a sunset clause to provide the borough with an opportunity to test this ordinance. Because the ordinance is working well, I encourage the assembly to eliminate the sunset clause at this time to provide certainty in business and financial planning for taxpayers and the borough.