M E M O R A N D U M

To: William Popp, Assembly President

Members of the Assembly

From: Drew Scalzi, Assembly Member

Date: October 4, 2000

Re: An Ordinance Amending KPB 5.12.160 To Provide That Property Taxes Levied Against Certain Portable Structures Which Are Classified As Real Property May Be Collected In Accordance With Procedures Established For Collecting Personal Property Taxes

This ordinance is proposed to resolve a problem that arose in Homer but may also exist throughout the borough. Boardwalks on the Homer Spit are typically owned by the landowner, who leases space on the boardwalk to businesses that place small portable buildings on the boardwalk. Under existing law, all real property taxes are assessed to the landowner and not separated between the land owner and building owner. Additionally, the assessing and finance departments have encountered problems when these structures are removed from the premises. If the land is foreclosed upon there may be insufficient value to collect the total taxes due because the structures have been removed. Also, to stop the foreclosure the landowner is required to pay the tax on a structure not owned or possessed by the landowner. By enabling the administration to proceed personally against the owner of the structure this problem is minimized. Under the proposed ordinance the administration is authorized to collect the taxes on the portable structures against the owner of the portable structure rather than just including that in the tax foreclosure of the underlying lot. Your support in passing this would be appreciated.