00SENATE BILL NO. 2                                                                                                     
01 "An Act amending the Alaska Net Income Tax Act to provide that the net                                                  
02 proceeds of a qualified nonprofit organization's unrelated business taxable income                                      
03 obtained from permitted gaming activities are not subject to tax; and providing                                         
04 for an effective date."                                                                                                 
05 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                               
06    * Section 1.  AS 43.20.021 is amended by adding a new subsection to read:                                          
07  (h)  For purposes of determining tax liability under this chapter, a nonprofit                                        
08 organization that is exempt from payment of tax under 26 U.S.C. 501(c) is not liable                                    
09 for payment of tax on the net proceeds of the organization's unrelated business taxable                                 
10 income as defined by 26 U.S.C. 512(a) that are obtained from activities for which a                                     
11 permit has been issued to the nonprofit corporation under AS 05.15.100.                                                 
12    * Sec. 2.  This Act takes effect January 1, 1998, and applies to the unrelated business                            
13 taxable income of a qualified nonprofit organization that is received after December 31, 1997.