The Tax Reform Resolution, 643

*A resolution to make sweeping amendments to the existing tax law and regularise the Kodiaker tax system with common global standards.*

*Passed 26 July 2022 with 14 Aye, 4 Nay, 2 Abstain.*

## Be it resolved

IDENTIFYING the present tax system is vastly out of step with international norms;

RECOGNISING the evolving liabilities of the Modern Kodiaker State;

PREPARING for the complexities of a financially and technologically complex future;

HEREBY alters Title 7 of the Kodiak Law Code to: -

1. REPEAL The Commodity Tax Act, 630;
2. REPEAL The Corporation Tax Act, 630;
3. ENACT The Enterprise Tax Act, 643;
4. ENACT The Commodity and Services Tax Act, 643;

# The Enterprise Tax Act, 643

*An act to fund public programs and other necessary government expenditure through a levy on the profits of general enterprise.*

*Enacted ## MONTH 2022.*

## Article 1 - The Corporation Tax

1.1 - Enacts a flat levy upon all gross operating profits of an organisation or commercial enterprise with sales with the Kodiak Republic.
1.2 - The Corporation Tax Rate shall be set at 25% of total reported gross profitable revenue.
## Article 2 - The Capital Gains Tax

2.1 - Enacts a flat levy upon the net physical or financial capital income of an individual, organisation, or enterprise.
2.2 - Permits a one-to-one deduction of capital losses to present capital gains if such capital losses were accrued within the previous three financial years.
2.3 - The Capital Gains Tax Rate shall be set at 25% of total reported capital gains after deductions.

# The Commodity and Services Tax Act, 643

*An act to fund public programs and other necessary government expenditure as well as to disincentivise certain economic behaviours through a levy on the sale of goods and services.*

*Enacted ## MONTH 2022.*

## Article 1 - The Land Value Tax

1.1 - Creates an annual flat tax on the value of privately owned and managed land.
1.2 - Specifically excludes the valuation of any property or improvements to a parcel of land.
1.3 - Sets the annual Land Value Tax Rate to be 10%.
## Article 2 - The Under-utilised Residential Property Tax

2.1 - Creates an annual levy on the value of residential property left vacant for more more than six months in a calendar year.
2.2 - Sets the annual Under-utilised Residential Property Tax to 25%.
## Article 3 - The Point of Sales Tax

3.1 - Creates a flat tax on the sale of all goods and services to be collected by the seller at the point of sale.
3.2 - Sets the Point of Sale Tax Rate to 7% of the gross untaxed sale price.
## Article 4 - The Petroleum Sales Levy

4.1 - Creates a flat tax on the sale of petroleum, gasoline, butane, diesel, and other oil based fuels.
4.2 - Appends this levy in addition to the Point of Sales Tax.
4.3 - Sets the Petroleum Levy to be 15% of the gross sale price.
## Article 5 - The Tobacco Sales Levy

5.1 - Creates a flat tax on the sale of cigarettes, cigars, snuff, chew, loose tobacco, and all other tobacco products to be taken internally.
5.2 - Appends this levy in addition to the Point of Sales Tax.
5.3 - Sets the Tobacco Sales Levy to be 30% of the gross sale price.
## Article 6 - The Alcohol Sales Levy

6.1 - Creates a flat tax on the sale of beer, wine, spirits, and all other ethanol-containing products intended to be taken internally.
6.2 - Appends this levy in addition to the Point of Sales Tax.
6.3 - Sets the Alcohol Sales Levy to be 30% of the gross sale price.
## Article 7 - The Recreational Drugs Levy

7.1 - Creates a flat tax on the sale of all legal Schedule B and Schedule D recreational drugs.
7.2 - Appends this levy in addition to the Point of Sales Tax.
7.3 - Removes this levy for any substance acquired on the advice and prescription of a practicing and certified medical professional.
7.4 - Sets the Recreational Drugs Levy to be 45% of the gross sale price.