§ 5.18.225. Exemption for owner builder construction materials—Owner builder certificate required—Penalty for misuse.

A.

Sales of building construction materials and services are exempt under this chapter, but only if:

1.

The materials become part of the permanent structure; and

2.

The materials or services are bought by the owner of a residential or other building, for a specific building project; and

3.

The building owner obtains an owner builder tax exemption certificate as provided in this section, and presents the certificate at the time of each sale.

B.

An owner builder may apply for an owner builder tax exemption certificate, on the form provided by the borough. Upon approval of a completed application, and a fee in the amount listed in the most current Kenai Peninsula Borough Schedule of Rates, Charges and Fees per card, the borough will issue the certificate, which will be valid for one year from the date of purchase.

C.

The following penalties shall be imposed by the borough for misuse of the owner builder certificate:

1.

Immediate cancellation and demand for surrender of the owner builder certificate.

2.

Retroactive denial of the exemption, and collection of sales taxes formerly exempted under the owner builder certificate.

(Ord. No. 2011-32, § 5, 9-20-11; Ord. No. 2002-39, § 8, 12-10-02; Ord. No. 94-27, § 5, 1994)

Note— It should be noted that § 17 of Ord. No. 2002-39 provides for an effective date of April 1, 2003.