The Kenai Peninsula Borough appropriated the Commercial Passenger Vessel Tax Program proceeds received under the American Rescue Plan Act of 2021 in the amount of $612,640. Of that, $577,195 will go to the City of Seward and $35,445 will go to the City of Homer.
The Commercial Passenger Vessel Tax Program provides for the levy and collection of the tax and disposition of the proceeds, which are deposited into a tax account, portions of which are disbursed to the first seven ports of call each year. If ports of call are in a city within a borough, $2.50 per passenger is distributed to the city and the borough in which the city is located. Both Seward and Homer have qualified for the 2021 funds, even though the borough elected to pass those funds through to the cities in which the ports are in in years past.
House Bill 69, which appropriated funding to the Commercial Passenger Vessel Excise Tax shared tax program, was passed by the State Legislature and signed by the Governor in July 2021. In the legislation, funds were appropriated from the American Rescue Plan Act to supplement the same amount that was shared to eligible ports of call for calendar year 2021, and the disbursements will be equal to the disbursements in calendar year 2020.
Seward’s City Manager, Janette Bower, wrote to the Borough that the city plans to invest in water and sewer infrastructure as well as expansion opportunities.
Homer’s City Manager, Rob Dumouchel, wrote that they will use the funds to support the city’s Port & Harbor crane dock services through a pay-go project, which involves refurbishing a crane. The cranes are heavily used by commercial fishing vessels and the crane in question is 35 years old and needs a complete overhaul in order to remain in service. The overhaul includes sandblasting and painting all of the parts, installing a new winch, rebuilding and resealing all cylinders, and repairing the electrical motor, in addition to much more.
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