00                            HOUSE BILL NO. 326                                                                          
01 "An Act related to tax credits for taxes related to certain business losses."                                           
02 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
03    * Section 1.  AS 43.20 is amended by adding a new section to read:                                                 
04            Sec. 43.20.019.  Tax credit for taxes paid on certain business losses.  (a)  A                             
05       taxpayer is allowed as a credit against the tax due under this chapter the amount of a                            
06       sales tax that the taxpayer has paid to purchase goods that the taxpayer has sold in the                          
07       course of the taxpayer's business if the taxpayer has not been paid for the goods.                                
08            (b)  In order to qualify for a tax credit under (a) of this section,                                         
09                 (1)  the debt for which the taxpayer is claiming the credit must be at                                  
10       least six months overdue; and                                                                                     
11                 (2)  if the debt is based on a dishonored check, the taxpayer must have                                 
12       attempted to recover the debt by following the procedures of AS 09.68.115 and must                                
13       have started the attempt by making the written demand for payment required by                                     
14       AS 09.68.115(a)(1) not later than 30 days after the check is dishonored.                                          
15            (c)  In (b)(1) of this section, the six months shall be calculated from the later of                         

01       the date the purchase was made from the taxpayer, or the date a check for the purchase                            
02       is dishonored by the purchaser's bank.                                                                            
03            (d)  If a taxpayer receives a tax credit under this section and if the taxpayer                              
04       subsequently recovers at least two times the dollar amount of the tax credit, whether                             
05       through normal payment or legal action, from or on behalf of the purchaser, the                                   
06       taxpayer shall reimburse the state the amount of the credit within 30 days after the                              
07       recovery.                                                                                                         
08    * Sec. 2.  The uncodified law of the State of Alaska is amended by adding a new section to                         
09 read:                                                                                                                   
10       APPLICABILITY.  AS 43.20.019, enacted by sec. 1 of this Act, applies to sales taxes                               
11 for which a credit may be obtained under that section that are paid by the taxpayer on or after                         
12 January 1, 2004.