October 2, 2015 [via USPS Priority Express Mail EK 951592315 US]

**I!::::::=::R=f~-#~~z,** Director Office ofAirport Compliance and Management Analysis Federal Aviation Administration 800 Independence Avenue, S.W. Washington, D.C. 20591-0004 Re: City of Kotzebue , Alaska -Action Plan Pursuant to 79 FR 66282, 66286, November 7, 2014 Dear Mr. Fiertz: Joseph W
. Evans City Attorney joe@jwevamlaw.com

Valerie V. Evans

Legal Assistant valerie@ jwevanslaw.com

Pursuant to the November 7, 201 4 "Policy and Procedures Concerning the Use of Airport Revenue; Proceeds From Taxes on Aviation Fuel," found at 79 FR 66282 and the action plan required of local governments at 79 FR 66286, the second

-class City of Kotzebue, Alaska, hereby submits its action plan for review and approval. The FAA requirements for the action plan are as follows: 

### State and local officials should prepare an actionplan to initiate the process to amend any non-compliant State laws and local ordinances as necessary to conform tofederal law on use of aviationfuel tax revenues. The action plan should detail the process necessary to develop reporting requirements and tracking systemsfor discrete information on aviation fuel tax revenues. The plan may include a reasonable transition period, not to exceed three years, during which the FAA would agree, in an exercise of its prosecutorial discretion, not to enforce the revenue use requirement against a non-sponsor State or local government. State and local governments should submit an actionplan to the FAA within a year of the effective date of this notice
. Initiation of an action plan would provide State and local governments sufficient time to plan for restructuring of general revenues to adapt to the dedication of aviationfuel tax revenue to airports and State aviationprograms within a reasonable transition period, not to exceed three years from the effective date of this notice. Demonstration of an action plan detailing (1) 

### a commitment to undertake the legislative process; and (2) the timeframe for action within the three year period, will demonstrate voluntary compliance with federal obligations

P.O. Box 519 • Brem er

ton, WA 98337-0124 (360) 782-2418 • Fax (360) 782-2419Randall S
. Fiertz, Director October 2, 2015 Page2

City of Kotzebue General Sales Tax In 1960, the Cit y of Kotzebue enacted a two-percent (2%) general sales tax " [o]n the purchase price paid or charged upon all sales
.... " 1 

### In 1971, the City ofKotzebue raised its general sales tax to three-percent (3%)_2 

### In 1990, the general sales tax rate was raised to four

-percent



### (4o/~. **3** Finally, in 1992 and 1996/1997, the general sales tax rate was raised to six-percent (6%) City ofKotzebue ' s Action Plan Pursuant to the November 7, 2014 " Policy and Procedures Concerning the Use of Airport Revenue ; Proceeds From Taxes on Aviation Fuel ," the City of Kotzebue will amend its Sa les Tax Code, Kotzebue Municipal Code, Chapter 3.20, to impose only a three

-percent (3%) sales tax on aviation fuel> as existed prior to December 30, 1987, and retain those proceeds in the City of Kotzebue ' s general fund for governmental operations. This amendatory process will take place over the next several months and will be effective sometime in the 2016 calendar year. This timeline complies with the mandate established by 79 FR 66282

- 66286. Conclusion The City of Kot zebue would respectfully request that the Office of Airport compliance and Management Analysis, Federal Aviation Administration, approve the City of Kotzebue's Action Plan as set out herein and formally notify the City of Kotzebue of such approval. Respectfully,



# Jo **~** City Attorney for City of Kotzebu e
JWE/vve cc: Derek Martin, City Manager

1 Ordinance No. 2A, effective June 2, 1960, at pages 3 and 4. 2 Ordinance No. 31 , effective June 1 , 1971 , at Section I , at page 1. 3 Ordinance No. 90-07B , enacted July 30, 1990, at Section 1. 4 Ordinance Nos . 92

-05 , enacted May 27 , 1992; 96-16 , enacted May 16, 1996; 97

- 01, enacted July 18, 1996 ; 97-04 , enacted November 13, 1996; and 97

- 05, enacted January 2 , 1997.