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 ## MONTH 2022 with ## Aye, ## Nay, ## 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 occured 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 5% 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.