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: -
- REPEAL The Commodity Tax Act, 630;
- REPEAL The Corporation Tax Act, 630;
- ENACT The Enterprise Tax Act, 643;
- 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.