00CS FOR SENATE BILL NO. 42(CRA)                                                                                          
01 "An Act relating to municipal taxation of alcoholic beverages; and providing for                                        
02 an effective date."                                                                                                     
03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
04    * Section 1.  AS 04.21.010(c) is amended to read:                                                                    
05  (c)  A municipality may not impose taxes on alcoholic beverages except a                                              
06   (1)  property tax on alcoholic beverage inventories;                                                                 
07   (2)  sales tax on alcoholic beverage sales if sales taxes are imposed on                                             
08 other sales within the municipality; a sales tax imposed on alcoholic beverages in a                                   
09 municipality with a population of 2,500 or fewer people or in a municipality that                                       
10 had a population of 2,500 or fewer people on July 1, 1993, may be equal to or                                           
11 higher than the sales tax imposed on other sales within the municipality but may                                        
12 not be lower than the sales tax imposed on other sales within the municipality;                                        
13   (3)  sales tax on alcoholic beverage sales that was in effect before                                                 
14 July 1, 1985; and                                                                                                       

01   (4)  sales and use tax on alcoholic beverages if the sale of alcoholic                                               
02 beverages within the municipality has been prohibited under AS 04.11.490.                                               
03    * Sec. 2.  AS 29.45.650(b) is amended to read:                                                                       
04  (b)  A borough levying a sales tax may also by ordinance levy a use tax on the                                        
05 storage, use, or consumption of tangible personal property in the borough. The use tax                                  
06 rate must equal the sales tax rate except as otherwise provided under                                                  
07 AS 04.21.010(c), and the use tax shall be levied only on buyers.                                                       
08    * Sec. 3.  This Act takes effect July 1, 1993.