ITEM TITLE:
Approval of Memorandum of Understanding Between the State of Alaska Department of Revenue and the City of Valdez
SUBMITTED BY: Robin Brena, City Attorney
FISCAL NOTES:
Expenditure Required: NA
Unencumbered Balance: NA
Funding Source: NA
RECOMMENDATION:
Approve memorandum of understanding.
SUMMARY STATEMENT:
The City and the State Department of Revenue have been negotiating a memorandum of understanding that will allow the City to cooperate with the Department in the assessment of oil and gas property within the City’s jurisdiction. This agreement will provide the City a mechanism other than litigation to potentially reach resolution of its longstanding disputes with the Department regarding the taxability of certain spill prevention and response equipment. While the details of implementation will need to be clarified as they arise, the City Attorney recommends approval of this agreement in order to start the process and make full use of this opportunity.