HB 426: "An Act relating to the levy and collection of an assessment on certain tourism-related and recreation-related goods and services, to tourism marketing contracts, and to vehicle rental taxes; and providing for an effective date."
00 HOUSE BILL NO. 426 01 "An Act relating to the levy and collection of an assessment on certain tourism-related 02 and recreation-related goods and services, to tourism marketing contracts, and to 03 vehicle rental taxes; and providing for an effective date." 04 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 05 * Section 1. The uncodified law of the State of Alaska is amended by adding a new section 06 to read: 07 SHORT TITLE. This Act may be known as the Sustainable Tourism and Recreation 08 Assessment Act. 09 * Sec. 2. AS 43.52 is amended by adding a new section to read: 10 Sec. 43.52.095. Disposition of proceeds. (a) The vehicle rental tax account 11 is created in the general fund. 12 (b) The proceeds of the assessments levied in AS 43.52.010 and 43.52.030 13 shall be deposited into the vehicle rental tax account. 14 (c) The legislature may appropriate 20 percent of the money in the vehicle
01 rental tax account to the Department of Community and Economic Development for 02 the purpose of entering into a contract with a qualified trade association for tourism 03 marketing under AS 44.33.125. 04 (d) The deposit required and appropriation authorized by this section are not 05 intended to create a dedication in violation of art. IX, sec. 7, Constitution of the State 06 of Alaska. 07 * Sec. 3. AS 44.33.125(a) is amended to read: 08 (a) Subject to appropriations for the purpose, the Department of Community 09 and Economic Development shall, on or before April 1 of each fiscal year, contract 10 with a single qualified trade association for the purpose of planning and executing a 11 destination tourism marketing campaign during the next fiscal year. If a sustainable 12 tourism and recreation assessment under AS 44.33.126 is in effect when the 13 contract is executed, the qualified trade association may not be required to 14 provide matching funds. However, if a sustainable tourism and recreation 15 assessment under AS 44.33.126 is not in effect when the contract is executed, the 16 [THE] contract may be executed [AWARDED] only if the qualified trade association 17 provides matching funds equal to at least 60 percent of the costs of the marketing 18 campaign described in the contract. The marketing campaign may promote distinct 19 segments of tourism, such as highway tourism, seasonal tourism, ecotourism, cultural 20 tourism, regional tourism, and rural tourism. Before the contract is executed, the 21 marketing campaign plan must be approved by the department. 22 * Sec. 4. AS 44.33 is amended by adding new sections to read: 23 Sec. 44.33.126. Sustainable tourism and recreation assessment. (a) A 24 sustainable tourism and recreation assessment is levied on 25 (1) the sale of scenic and sightseeing transportation services, including 26 land, water, and aerial transportation, involving same-day return to the place of origin; 27 (2) rental of accommodations in a hotel, motel, bed and breakfast, 28 recreational or vacation camp, recreational vehicle park, campground, or other 29 commercial establishment providing short-term lodging if the rental does not exceed a 30 period of 30 consecutive days; 31 (3) Alaska marine highway system passenger fares;
01 (4) Alaska railroad corporation passenger fares; 02 (5) Alaska railroad corporation passenger tour car towing charges; 03 (6) meals sold at salmon bakes; for purposes of this paragraph, a 04 salmon bake is an establishment offering exclusively fixed-price meals featuring 05 salmon or other seafood; 06 (7) goods sold by seasonal retail shops; for purposes of this paragraph, 07 "seasonal retail shop" means a retail store that makes more than 75 percent of its sales 08 on or after May 1 but before October 1 in each calendar year; 09 (8) the retail sale of arts and crafts made in Alaska and not subject to 10 assessment under (7) of this subsection; 11 (9) the retail sale of smoked Alaska fish and other foods produced in 12 Alaska and not subject to assessment under (7) of this subsection; 13 (10) the retail sale of gifts and souvenirs featuring Alaska images and 14 not subject to assessment under (7) of this subsection; for purposes of this paragraph, 15 (A) "Alaska images" includes the word "Alaska," the name or 16 image of a municipality in the state, the name or image of an Alaska landmark, 17 whether natural or constructed, the image of the stars of the "Dipper," a picture 18 or scene associated with Alaska, and images of bears, moose, caribou, seals, 19 walrus, whales, eagles, salmon, wolves, sled dogs, and other animals and 20 wildlife associated with Alaska; and 21 (B) "gifts and souvenirs" includes tee shirts, sweatshirts, and 22 other clothing, jewelry, glassware, cups, plates, cutlery, key chains, carvings, 23 statues, statuettes, clocks, books, paintings, prints, photographs, postcards, 24 calendars, and videos. 25 (b) The assessment in (a) of this section shall be levied if an election is held 26 under AS 44.33.129 at which the assessment is approved by eligible visitor industry 27 businesses that together account for at least 51 percent of the value of sales, leases, 28 and rentals described in (a) of this section and not exempt under AS 44.33.127. An 29 election shall be held if a majority of the board of a qualified trade association votes to 30 hold an election. 31 (c) The rate of the assessment is two percent.
01 (d) The provisions of AS 43.05 and AS 43.10 apply to the enforcement and 02 collection of the sustainable tourism and recreation assessment. 03 Sec. 44.33.127. Exemptions. The assessment levied under AS 44.33.126 04 does not apply to 05 (1) sales, leases, and rentals that are 06 (A) explicitly exempted from taxation under another provision 07 of state law; or 08 (B) exempt from taxation under federal law and purchases 09 made with 10 (i) food coupons, food stamps, or other types of 11 certificates issued under 7 U.S.C. 2011 - 2036 (Food Stamp Act); and 12 (ii) food instruments, food vouchers, or other types of 13 certificates issued under 42 U.S.C. 1786 (special supplemental nutrition 14 program for women, infants, and children); 15 (2) sales and purchases by federal, state, or local government entities; 16 (3) sales, leases, or rentals made to an entity described in 26 U.S.C. 17 501(c)(3) (Internal Revenue Code) and exempt from federal income tax under 26 18 U.S.C. 501(a); 19 (4) sales, leases, or rentals made by an entity described in 26 U.S.C. 20 501(c)(3) (Internal Revenue Code) and exempt from federal income tax under 26 21 U.S.C. 501(a) if the income from the sale or rental is exempt from federal income 22 taxation; 23 (5) casual and isolated sales, leases, or rentals by a seller who does not 24 regularly engage in the business of selling goods or services or making rentals, but 25 only if the total sales or rentals do not exceed $1,000 a year and the sales or rentals do 26 not occur for more than 14 days in a calendar year. 27 Sec. 44.33.128. Termination of the sustainable tourism and recreation 28 assessment. (a) A sustainable tourism and recreation assessment levied under 29 AS 44.33.126 shall be terminated by the commissioner of revenue if 30 (1) an election is held under AS 44.33.129 in which the termination is 31 approved by eligible visitor industry businesses that together account for at least 51
01 percent of the value of sales, leases, and rentals described in AS 44.33.126(a) and not 02 exempt under AS 44.33.127; or 03 (2) two-thirds of the board of a qualified trade association at a regular 04 meeting adopts a resolution requesting the commissioner of revenue to terminate the 05 assessment. 06 (b) An election under (a)(1) of this section shall be held if 07 (1) the proposed election for the termination of the assessment is 08 approved by a majority of the board of the qualified trade organization at a regularly 09 scheduled meeting; or 10 (2) a petition is presented to the director of elections requesting 11 termination of the assessment by eligible visitor industry businesses that together 12 account for at least 25 percent of the value of sales, leases, and rentals described in 13 AS 44.33.126(a) and not exempt under AS 44.33.127 during the calendar year. 14 (c) The qualified trade association shall provide notice of an election in 15 accordance with AS 44.33.129 within 60 days after receiving notice from the director 16 of elections that a valid petition under (b)(2) of this section has been received. 17 (d) The sustainable tourism and recreation assessment is terminated on the 18 effective date stated on the ballot. 19 Sec. 44.33.129. Procedures for an election to approve or terminate a 20 sustainable tourism and recreation assessment. (a) A qualified trade association 21 may conduct an election under this section after the director of elections approves the 22 (1) notice to be published by the qualified trade association; 23 (2) ballot to be used in the election; and 24 (3) registration and voting procedures for the approval or termination 25 of the sustainable tourism and recreation assessment. 26 (b) In conducting an election under this section, a qualified trade association 27 shall adopt the following procedures: 28 (1) the proposed levy or termination of the assessment shall be adopted 29 at a regularly scheduled meeting of the board held not less than 60 days before the 30 date on which the ballots must be postmarked to be counted unless the election is for 31 termination of the assessment and has been initiated by a petition under
01 AS 44.33.128(b)(2); 02 (2) the qualified trade association shall hold at least one meeting, not 03 less than 30 days before the date on which ballots must be postmarked to be counted, 04 to explain the reason for the proposed sustainable tourism and recreation assessment 05 or termination of the assessment and to explain the voting procedure to be used in the 06 election; the qualified trade association shall provide notice of the meeting by 07 (A) mailing the notice to each eligible visitor industry business; 08 and 09 (B) publishing the notice in at least one newspaper of general 10 circulation in each region of the state at least two weeks before the meeting; 11 (3) the qualified trade association shall mail ballots to each eligible 12 visitor industry business not more than 45 days before the date specified as the date 13 ballots must be postmarked; 14 (4) the ballot must 15 (A) state the rate at which the assessment is or is to be levied; 16 (B) indicate the effective date of the levy of the assessment or 17 termination of the assessment; 18 (C) ask whether the assessment shall be levied or, if the 19 election is to terminate the assessment, whether the assessment shall be 20 terminated; 21 (5) the ballots shall be returned by mail and shall be counted by the 22 director of elections or a representative. 23 (c) The director of elections shall certify the results of an election under this 24 section if the director determines that the requirements of (a) and (b) of this section 25 have been satisfied. 26 (d) For purposes of this section, a ballot submitted by a corporation is 27 presumed valid if the ballot is signed by an individual who is indicated to be an officer 28 of the corporation and the ballot is imprinted with the corporate seal. 29 Sec. 44.33.131. Determination of sales. Upon request from the director of 30 elections, the commissioner of revenue shall determine 31 (1) the total value of sales, leases, and rentals subject to assessment
01 under AS 44.33.126(a) and not exempt under AS 44.33.127 during the calendar year; 02 (2) whether, for purposes of AS 44.33.126(b) or 44.33.128(a), the 03 eligible visitor industry businesses approving the levy or termination of a sustainable 04 tourism and recreation assessment together produced at least 51 percent of the total 05 value of sales, leases, and rentals subject to assessment under AS 44.33.126(a) during 06 the calendar year; or 07 (3) whether the eligible visitor industry businesses petitioning for an 08 election under AS 44.33.128(b)(2) together produced at least 25 percent of the total 09 value of sales, leases, and rentals subject to assessment under AS 44.33.126(a) during 10 the calendar year. 11 Sec. 44.33.132. Collection of assessment. (a) A seller shall add the amount 12 of the assessment levied under AS 44.33.126 to the total price of the sale, lease, or 13 rental subject to the assessment, and the assessment shall be stated separately on any 14 sales receipt, invoice, or other record of the sale, lease, or rental. 15 (b) The person making the sale, lease, or rental shall collect the assessment 16 from the purchaser and remit the assessment collected to the department not later than 17 30 days following the last day of the month in which the assessment was collected. 18 However, a person that collects less than $1,000 in assessments in a calendar quarter 19 may remit the assessments within 30 days following the last day of the calendar 20 quarter in which the assessment was collected. 21 (c) A person remitting the assessment collected under AS 44.33.126 to the 22 department as required under (b) of this section and filing a complete and timely 23 return on a form prescribed by the department may retain one percent of the amount 24 collected to cover expenses associated with collecting and remitting the assessment. 25 Sec. 44.33.133. Exemption certificate. The department shall provide 26 exemption certificates to persons and entities exempt from the assessment under 27 AS 44.33.127. 28 Sec. 44.33.134. Disposition of proceeds. (a) The sustainable tourism and 29 marketing account is created in the general fund. 30 (b) The proceeds of the assessment levied under AS 44.33.126 shall be 31 deposited into the sustainable tourism and marketing account.
01 (c) The legislature may appropriate the money in the sustainable tourism and 02 marketing account to the Department of Community and Economic Development for 03 the purpose of entering into a contract with a qualified trade association for tourism 04 marketing under AS 44.33.125. 05 (d) The deposit required and appropriation authorized by this section are not 06 intended to create a dedication in violation of art. IX, sec. 7, Constitution of the State 07 of Alaska. 08 Sec. 44.33.139. Definitions. In AS 44.33.126 - 44.33.139, 09 (1) "board" means the board of directors of a qualified trade 10 organization; 11 (2) "eligible visitor industry business" means a business that would be 12 liable for payment of a sustainable tourism and recreation assessment under 13 AS 44.33.126; 14 (3) "qualified trade organization" means the trade organization 15 contracting with the Department of Community and Economic Development under 16 AS 44.33.125 for the fiscal year. 17 * Sec. 5. The uncodified law of the State of Alaska is amended by adding a new section to 18 read: 19 APPLICABILITY. The amendments to AS 44.33.125 made in sec. 3 of this Act apply 20 to contracts for tourism marketing entered into under AS 44.33.125 for fiscal years beginning 21 July 1, 2006. 22 * Sec. 6. The uncodified law of the State of Alaska is amended by adding a new section to 23 read: 24 TRANSITION: REGULATIONS. The Department of Revenue may proceed to adopt 25 regulations necessary to implement the provisions of this Act. The regulations take effect 26 under AS 44.62 (Administrative Procedure Act), but not before the effective date of the 27 provision being implemented. In adopting regulations implementing AS 44.33.126, the 28 department shall strive for consistency with the 2002 North American Industrial Classification 29 System (NAICS) codes system used by the United States Bureau of the Census for classifying 30 business establishments. 31 * Sec. 7. Section 3 of this Act takes effect January 1, 2006.
01 * Sec. 8. Section 6 of this Act takes effect immediately under AS 01.10.070(c). 02 * Sec. 9. Except as provided in secs. 7 and 8 of this Act, this Act takes effect January 1, 03 2005.