The Cordova City Council recently passed three ordinances aimed at making the city’s operating and capital budgets sustainable by 2020, all of which go into effect on Jan. 1.
The action is part of the city’s strategic action plan to identify goals, priorities and areas of action, given the current status of national and state economies and the unpredictability of the upcoming fishing season. The city council, with City Manager Alan Lanning, developed a list of priorities, one of which was development of a financial plan.
Here’s a primer on how the ordinances might affect individuals and businesses in Cordova.
Ordinance 1160: Eliminates the compensatory collection discount from sales tax. This means when businesses file their quarterly sales tax they will no longer be able to deduct the 2 percent discount for timely filing.
Ordinance 1159: Increases the cap on sales tax from $3,000 to $7,500. This means sales tax collected and remitted on a single transaction.
Ordinance 1156: Motor fuel excise tax. This tax is levied on all motor fuel dispensed into vehicles and watercraft from any fuel facility within the city other than a fueling facility located on property for which the city receives rent calculated based on the number of gallons of fuel sold from the fueling facility. The tax is $0.04 per gallon.
For more information, please contact the Cordova Finance Department.
