SB 290: "An Act relating to taxes regarding certain commercial passenger vessels operating in the state; relating to apportionment of business income; and providing for an effective date."
00 SENATE BILL NO. 290 01 "An Act relating to taxes regarding certain commercial passenger vessels operating in 02 the state; relating to apportionment of business income; and providing for an effective 03 date." 04 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 05 * Section 1. AS 43 is amended by adding a new chapter to read: 06 Chapter 52. Excise Tax on Passengers Traveling Aboard 07 a Commercial Passenger Vessel. 08 Sec. 43.52.010. Levy of excise tax on passengers traveling aboard a 09 commercial passenger vessel. There is imposed an excise tax on passengers 10 traveling in the marine waters of the state aboard a commercial passenger vessel that 11 provides overnight accommodations. 12 Sec. 43.52.020. Rate of tax. The tax imposed by this chapter is levied at a 13 rate of $30 a passenger per voyage. 14 Sec. 43.52.030. Liability for payment of tax. (a) A passenger traveling in
01 the marine waters of the state aboard a commercial passenger vessel that provides 02 overnight accommodations is liable for the tax imposed by this chapter. The tax 03 (1) shall be collected by the person who provides the travel to the 04 passenger; and 05 (2) is due and payable to the department 06 (A) by the person who provides the travel to the passenger, 07 regardless of whether the person actually collects the tax from the passenger; 08 and 09 (B) in the manner and at the times required by the department 10 by regulation. 11 (b) A passenger is not liable for the tax under this chapter if that passenger 12 was liable for the tax within the preceding 30 days. 13 (c) A person who provides travel for a passenger who, under (b) of this 14 section, would not be liable for the tax under this chapter is not required to collect and 15 pay the tax to the department if the person reasonably believes that the passenger is 16 not liable for the tax under (b) of this section. 17 Sec. 43.52.040. Disposition of proceeds. The proceeds from the tax imposed 18 by this chapter shall be deposited in the general fund. 19 Sec. 43.52.050. Administration. (a) The department shall 20 (1) administer this chapter; and 21 (2) collect, and supervise and enforce the collection of, taxes due under 22 this chapter and penalties as provided in AS 43.05. 23 (b) The department may adopt regulations to carry out the purposes of this 24 chapter. 25 Sec. 43.52.900. Definitions. In this chapter, unless the context otherwise 26 requires, 27 (1) "commercial passenger vessel" means a vessel that is used in the 28 common carriage of passengers in commerce; "commercial passenger vessel" does not 29 include a 30 (A) vessel with an overnight accommodation capacity for fewer 31 than 12 passengers;
01 (B) noncommercial vessel or a vessel operated by the state, the 02 United States, or a foreign government; or 03 (C) vessel licensed under AS 16.05.490 and used in charter 04 service for the recreational taking of fish and shellfish; 05 (2) "marine waters of the state" means the marine bays, sounds, rivers, 06 inlets, straits, passages, canals, Pacific Ocean, Gulf of Alaska, Bering Sea, and Arctic 07 Ocean within the territorial limits of the state, and all other bodies of marine water that 08 are wholly or partially within the state or are under the jurisdiction of the state; 09 (3) "passenger" means a person with whom a common carrier has 10 contracted for carriage from one place to another. 11 * Sec. 2. AS 43.20.021(a) is amended to read: 12 (a) Sections 26 U.S.C. 1 - 1399 and 6001 - 7872 (Internal Revenue Code), as 13 amended, are adopted by reference as a part of this chapter. These portions of the 14 Internal Revenue Code have full force and effect under this chapter unless excepted to 15 or modified by other provisions of this chapter. However, nothing in this chapter or in 16 AS 43.19 (Multistate Tax Compact) may be construed as an exception to or 17 modification of 26 U.S.C. 883, except that 26 U.S.C. 883(a)(1) does not apply to 18 gross income derived by a corporation organized in a foreign country from the 19 international operation of a commercial passenger vessel. In this subsection, 20 "commercial passenger vessel" means a vessel that is used in the common 21 carriage of passengers in commerce; "commercial passenger vessel" does not 22 include a 23 (1) vessel with an overnight accommodation capacity for fewer 24 than 12 passengers; 25 (2) noncommercial vessel or a vessel operated by the state, the 26 United States, or a foreign government; or 27 (3) vessel licensed under AS 16.05.490 and used in charter service 28 for the recreational taking of fish and shellfish. 29 * Sec. 3. AS 43.20.073(f) is amended to read: 30 (f) This section does not apply to taxpayers 31 (1) subject to AS 43.20.072 engaged in
01 (A) [(1)] the production of oil or gas from a lease or property 02 in the state; or 03 (B) [(2)] the transportation of oil or gas by regulated pipeline 04 in the state; or 05 (2) that operate a commercial passenger vessel; in this paragraph, 06 "commercial passenger vessel" means a vessel that is used in the common 07 carriage of passengers in commerce, but does not include a 08 (A) vessel with an overnight accommodation capacity for 09 fewer than 12 passengers; 10 (B) noncommercial vessel or a vessel operated by the state, 11 the United States, or a foreign government; or 12 (C) vessel licensed under AS 16.05.490 and used in charter 13 service for the recreational taking of fish and shellfish. 14 * Sec. 4. AS 43.52.010, 43.52.020, 43.52.030, 43.52.040, 43.52.050, and 43.52.900 are 15 repealed. 16 * Sec. 5. The uncodified law of the State of Alaska is amended by adding a new section to 17 read: 18 APPLICABILITY. Sections 2 and 3 of this Act apply to tax years beginning on or 19 after the effective date of secs. 2 and 3 of this Act. 20 * Sec. 6. The uncodified law of the State of Alaska is amended by adding a new section to 21 read: 22 TRANSITION: REGULATIONS. Notwithstanding sec. 9 of this Act, the 23 Department of Revenue may proceed to adopt regulations to implement sec. 1 of this Act. 24 The regulations take effect under AS 44.62 (Administrative Procedure Act), but not before the 25 effective date of sec. 1 of this Act. 26 * Sec. 7. The uncodified law of the State of Alaska is amended by adding a new section to 27 read: 28 CONDITIONAL EFFECT. Sections 2 - 5 of this Act take effect only if the validity of 29 the tax imposed by AS 43.52.010 - 43.52.900, enacted by sec. 1 of this Act, is challenged in 30 court and a court order finding the tax invalid is entered and becomes final. The 31 commissioner of revenue shall notify the lieutenant governor and the revisor of statutes of the
01 date of the court order described in this section. 02 * Sec. 8. If secs. 2 - 5 of this Act take effect under sec. 7 of this Act, they take effect on 03 January 1 of the year following the year in which the court order described in sec. 7 of this 04 Act becomes final. 05 * Sec. 9. Sections 6 and 7 of this Act take effect immediately. 06 * Sec. 10. Section 1 of this Act takes effect January 1, 2003.