A new law exempting business owners of the first $20,000 they own in assets is being considered by the Kodiak Island Borough Assembly. The draft of the ordinance will come before local lawmakers at their meeting this evening.
It broadly defines personal business property as such items as machinery and equipment as well as furnishing and fixtures at a commercial enterprise.
But the carrot in the deal also has a stick. Fines for failing to declare business assets would increase from 10 to 20 percent of the value of the assessed property.
The ordinance would also lower taxes on commercial aircraft. Last month the borough assembly heard from commercial pilots complaining that tax rates were too high. The proposal would set a tax rate based on weight rather than a plane’s value as is done in other municipalities including Juneau and Homer.
Other changes would add charter fishing boats that are under five net tons to the tax rolls by closing a loophole designed for commercial fishing vessels.
Tonight’s meeting will also welcome incoming Assemblywoman Carol Austerman.
The meeting is scheduled for 7:30 p.m. in the Kodiak Island Borough Assembly Chambers and will be broadcast live here on KMXT.