October 2, 2015 

[via USPS Priority Express Mail EK 951592315 US] 

I!::::::=::R=f~-#~~z, Director 

Office of Airport 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, 2014 "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 action plan to initiate the process to 

amend any non-compliant State laws and local ordinances as necessary to 

conform to federal law on use of aviation fuel tax revenues. The action plan 

should detail the process necessary to develop reporting requirements and 

tracking systems for 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 

action plan 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 aviation fuel tax revenue to airports and State aviation programs 

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 • Bremerton, WA 98337-0124 

(360) 782-2418 • Fax (360) 782-2419 
Randall S. Fiertz, Director 

October 2, 2015 

Page2 

City of Kotzebue General Sales Tax 

In 1960, the City 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 of Kotzebue 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 of Kotzebue'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 

Sales 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 Kotzebue 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, 

JoCity Attorney 

~ for City of Kotzebue 

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.