HB 372: "An Act providing for an advisory vote on the relative merits and specific characteristics of a statewide individual income tax and a statewide general sales tax; relating to the effective date of legislation enacted by the Twenty-Third Alaska State Legislature imposing an individual income tax or a sales tax; and providing for an effective date."
00 HOUSE BILL NO. 372 01 "An Act providing for an advisory vote on the relative merits and specific 02 characteristics of a statewide individual income tax and a statewide general sales tax; 03 relating to the effective date of legislation enacted by the Twenty-Third Alaska State 04 Legislature imposing an individual income tax or a sales tax; and providing for an 05 effective date." 06 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 07 * Section 1. The uncodified law of the State of Alaska is amended by adding a new section 08 to read: 09 LEGISLATIVE INTENT. It is generally agreed that, in the future, a statewide sales 10 or income tax will be needed, given that oil revenue in this state has declined. While state oil 11 revenue used to be enough to pay for an acceptable level of state services, the fall in revenue 12 is expected to cause continuing budget shortfalls in this and future years. In 2003, the 13 legislature began consideration of a bill to impose a statewide sales tax. In past years, much
01 legislative debate has occurred as to which type of tax the public would find most acceptable, 02 a sales tax or an income tax, and the public should be heard so this debate can be resolved. It 03 will assist government in its role as the people's representative for the public to voice its 04 preference before a sales or income tax is imposed. The public has not been given a 05 meaningful opportunity to comment on the relative desirability or undesirability of a sales tax 06 or an income tax. An advisory vote, and public debate leading up to an advisory vote, will 07 allow the public to be heard on this important matter of state policy. 08 * Sec. 2. The uncodified law of the State of Alaska is amended by adding a new section to 09 read: 10 ADVISORY VOTE. At the general election to be held on November 2, 2004, in 11 substantial compliance with the election laws of the state, including absentee voting and the 12 preparation, publication, and mailing of an election pamphlet under AS 15.58.010 - 13 15.58.090, the lieutenant governor shall place before the qualified voters of the state a 14 question advisory to the legislature and the governor. The election pamphlet for the special 15 election must comply with AS 15.58.020(6), including the requirement that it contain 16 statements that advocate voter approval or rejection of each of the questions described in this 17 section. Notwithstanding AS 15.60.005 and other laws relating to preparation of the ballot 18 proposition, the questions shall appear on the ballot in the following form: 19 Q U E S T I O N S 20 Faced with the prospect of declining oil revenues, the state may have to 21 consider a statewide tax to meet future revenue needs. It is important for the 22 legislature and the governor to know the public's preferences relating to 23 statewide sales and individual income taxes before any tax is imposed. 24 Between a sales tax and an individual income tax that raise the same amount of 25 revenue, which would you prefer (choose one)? 26 Sales Tax [ ] Individual Income Tax [ ] 27 If a sales tax is imposed, the state may exempt certain goods and services from 28 the tax but, if an exemption is allowed, then the rate on items not exempted 29 will have to be raised in order to generate the same amount of revenue. In the 30 event a sales tax is imposed, should it exempt certain sales (mark all that you 31 would like to see exempted)?
01 [ ] Groceries 02 [ ] Clothing 03 [ ] Professional Services 04 [ ] Sales made during the period October through April 05 If an individual income tax is imposed, should it be calculated as (choose one): 06 [ ] A higher percentage for those with higher income, and a lower 07 percentage for those with lower income 08 [ ] A flat percentage of income regardless of how little or how much 09 income a person earns. 10 * Sec. 3. The uncodified law of the State of Alaska is amended by adding a new section to 11 read: 12 EFFECTIVE DATE OF INDIVIDUAL INCOME TAX OR SALES TAX. A 13 statewide individual income tax or sales tax imposed by an Act of the Twenty-Third Alaska 14 State Legislature may not take effect until the advisory questions described in sec. 2 of this 15 Act have been placed before the voters, and may not take effect until after February 28, 2005. 16 * Sec. 4. This Act takes effect immediately under AS 01.10.070(c).