00CS FOR SENATE BILL NO. 42(CRA) am(efd fld)                                                                              
01 "An Act relating to municipal taxation of alcoholic beverages."                                                         
02 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
03    * Section 1.  AS 04.21.010(c) is amended to read:                                                                    
04  (c)  A municipality may not impose taxes on alcoholic beverages except a                                              
05   (1)  property tax on alcoholic beverage inventories;                                                                 
06   (2)  sales tax on alcoholic beverage sales if sales taxes are imposed on                                             
07 other sales within the municipality; a sales tax imposed on alcoholic beverages in a                                   
08 municipality may be equal to or higher than the sales tax imposed on other sales                                        
09 within the municipality but may not be lower than the sales tax imposed on other                                        
10 sales within the municipality;                                                                                         
11   (3)  sales tax on alcoholic beverage sales that was in effect before                                                 
12 July 1, 1985; and                                                                                                       
13   (4)  sales and use tax on alcoholic beverages if the sale of alcoholic                                               
14 beverages within the municipality has been prohibited under AS 04.11.490.                                               

01    * Sec. 2.  AS 29.45.650(b) is amended to read:                                                                       
02  (b)  A borough levying a sales tax may also by ordinance levy a use tax on the                                        
03 storage, use, or consumption of tangible personal property in the borough. The use tax                                  
04 rate must equal the sales tax rate except as otherwise provided under                                                  
05 AS 04.21.010(c), and the use tax shall be levied only on buyers.