00HOUSE BILL NO. 173                                                                                                      
01 "An Act exempting certain charitable gaming activity from municipal sales and                                           
02 use taxes."                                                                                                             
03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
04    * Section 1.  AS 29.10.200(42) is amended to read:                                                                   
05   (42)  AS 29.45.650(c), (d), (e), [AND] (f), and (i) (sales and use tax)                                            
06    * Sec. 2.  AS 29.45.650 is amended by adding a new subsection to read:                                               
07  (i)  A borough may not levy or collect a sales tax on sales, rents, and services,                                     
08 or a use tax on the storage, use, or consumption of personal property of a charitable                                   
09 gaming activity to the extent the activity is conducted by a permittee under a permit                                   
10 issued to that permittee under AS 05.15.                                                                                
11    * Sec. 3.  AS 29.45.700(a) is amended to read:                                                                       
12  (a)  A city in a borough that levies and collects areawide sales and use taxes                                        
13 may levy sales and use taxes on all sources taxed by the borough in the manner                                          
14 provided for boroughs.  Except as provided in (d) of this section and AS 29.45.650(i),                                

01 the assembly may by ordinance authorize a city to levy and collect sales and use taxes                                  
02 on other sources.