DENALI BOROUGH, ALASKA

 

ORDINANCE NO.  90‑04

 

AN ORDINANCE ESTABLISHING A SEVERANCE TAX

ON COAL, GRAVEL AND LIMESTONE

 

 

BE IT ENACTED BY THE ASSEMBLY OF THE DENALI BOROUGH

 

 

Section 1. Classification.

     This ordinance is of a general and permanent nature.

 

Section 2. General Provisions.

     There is levied in the Denali Borough, on any severer of certain natural resources an excise tax, denominated as a severance tax.  The tax rate shall be in an amount equal to $0.05 (five cents) per ton of the gross production of coal and limestone and $0.05 (five cents) per cubic yard of gravel resulting from the following activities:  mining, quarrying, extracting, removing, or producing for sale, profit, or commercial use, any coal, gravel and limestone.  The tax liability is accrued upon sale.

 

Section 3. Definitions.

            A.  "The gross production" means the number of recovered units of the natural resource severed and sold. 

            B.  "Severer" means a person, company, corporation or other entity engaged in the business of mining, quarrying, extracting, removing, or producing for sale, profit, or commercial use, any coal, gravel or limestone.

 

            C.  "Recovered Units" means all units mined, quarried, extracted, or removed and sold whether produced directly or contractually during the period of production.

 

Section 4.  Collection and accrual of severance tax.

            Every severer subject to taxation under this ordinance shall accrue the taxes imposed by this ordinance at the time of sale and shall transmit the same, monthly, to the Denali Borough.  The tax imposed shall be shown on the bill of sale as a separate and distinct item.

 

Section 5.  Violations a misdemeanor.

            Any severer violating any of the provisions of this ordinance is guilty of a misdemeanor.

 

 

 

 

 

Section 6. Effective Date.

            This ordinance becomes effective immediately upon passage.  Authority to collect this tax was granted by ballot measure at the time of incorporation which date was December 7, l990.

 

 

 

 

                             DATE INTRODUCED: December 30, 1990

 

                             FIRST READING:  December 30,1990

 

                             PUBLIC HEARING:  January 20, 1991

 

 

PASSED and APPROVED by the DENALI BOROUGH ASSEMBLY this 3rd day of February, l991.

 

                                    SIGNATURE ON FILE

                                        Mayor

 

 

 ATTEST:              SIGNATURE ON FILE

                                        Borough Clerk