CSHB 444(FSH): "An Act relating to direct marketing fisheries businesses, to the fisheries business tax, and to liability for payment of taxes and assessments on the sale or transfer of fishery resources; and providing for an effective date."
00 CS FOR HOUSE BILL NO. 444(FSH) 01 "An Act relating to direct marketing fisheries businesses, to the fisheries business tax, 02 and to liability for payment of taxes and assessments on the sale or transfer of fishery 03 resources; and providing for an effective date." 04 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 05 * Section 1. AS 43.75.015(c) is amended to read: 06 (c) A person engaging or attempting to engage in a fisheries business who first 07 actually and physically processes the fishery resource, or a person who purchases a 08 fishery resource that is processed [FROZEN] from a person excluded by 09 AS 43.75.017 from liability for the tax, is liable for and shall pay to the department the 10 entire tax imposed by this section. In determining this tax liability, the person may 11 deduct from the value of the fishery resources processed the value of fishery resources 12 that are canned or processed for other fisheries businesses. A person taking the 13 deduction authorized by this subsection shall report all information relating to the 14 deduction in accordance with regulations adopted by the department.
01 * Sec. 2. AS 43.75.015 is amended by adding new subsections to read: 02 (d) Instead of the taxes levied under (a) or (b) of this section, a person who 03 processes a fishery resource under a direct marketing fisheries business license is 04 liable for and shall pay a tax equal to 05 (1) one percent of the value of the developing commercial fish species 06 processed during the year; and 07 (2) three percent of the value of a commercial fish species not subject 08 to (1) of this subsection. 09 (e) For purposes of determining the value of a fishery resource on which a tax 10 is levied under this section, the department may establish a presumption of market 11 value for a fishery resource in a region or market area based on a volume weighted 12 average of market values for the fishery resource reported on returns filed under this 13 chapter by fisheries businesses operating in the region or market area. A taxpayer who 14 appeals an assessment of taxes based on a presumption of market value determined by 15 the department under this subsection may rebut the presumption with substantial 16 evidence of 17 (1) the prevailing price paid to fishermen for the fishery resource of the 18 same kind and quality by fisheries businesses in the same region or market area where 19 the fishery resource was taken, if the taxpayer holds a direct marketing fisheries 20 business license under AS 43.75.020(c) and the fishery resource on which the tax is 21 levied is processed under that license; or 22 (2) the true market value of the fishery resources if the taking of the 23 fishery resource is done in a company-owned or company subsidized boat operated by 24 employees of a fisheries business, a subsidiary of the fisheries business, or a parent 25 company of the fisheries business. 26 * Sec. 3. AS 43.75.017 is amended to read: 27 Sec. 43.75.017. Exclusion from fisheries business tax. A person is not liable 28 for the fisheries business tax under AS 43.75.015 when the fishery resource is 29 processed [FROZEN] aboard a fishing vessel if 30 (1) the vessel is operated as a commercial fishing vessel under a valid 31 commercial fishing license;
01 (2) the fishery resource is not processed beyond heading, gutting or 02 cleaning, freezing, and glazing; 03 (3) the fishery resource was caught by the vessel; and 04 (4) the fishery resource is sold [BY THE PERSON CLAIMING AN 05 EXCLUSION FROM THE TAX] to a fisheries business licensed under this chapter. 06 * Sec. 4. AS 43.75.020 is amended by adding a new subsection to read: 07 (c) Instead of a license issued under (a) of this section, the department may 08 issue a direct marketing fisheries business license to a licensed commercial fisherman 09 who processes fishery resources caught using a vessel that does not exceed 65 feet in 10 overall length and is owned or leased by the commercial fisherman. The licensee may 11 place into commerce in the state and outside of the state processed or unprocessed 12 fishery resources caught using the vessel described in the license. Fishery resources 13 that are caught using the vessel and owned by the licensee from the time of harvest 14 through sale, as defined by the department by regulation, may be processed by the 15 licensee on the vessel, at a shore-based facility, or by means of custom processing 16 services obtained by the licensee. An application for a direct marketing fisheries 17 business license shall be filed with the department and accompanied by an annual fee 18 of $25. A separate direct marketing fisheries business license and annual license fee 19 are required for each vessel on which processing is performed. The application must 20 state the name and address of the applicant, the fishery resources for which the 21 applicant holds a commercial fishing entry permit or interim-use permit or quota 22 share, a description of the vessel and each shore-based facility where the applicant will 23 process fishery resources, and other information that the department prescribes by 24 regulation. The application must state that the applicant agrees to pay the tax imposed 25 by AS 43.75.015(d) or 43.75.100, and that the applicant will make a return and pay the 26 tax at the time provided by law. A person who holds a direct marketing fisheries 27 business license may not under that license (1) purchase fishery resources for resale or 28 processing for sale; or (2) process fishery resources for another licensed commercial 29 fisherman or for a fisheries business licensed under this chapter. In this subsection, 30 "licensed commercial fisherman" means a natural person who holds a commercial 31 fishing entry permit or interim-use permit issued under AS 16.43 or a quota share
01 issued under federal law. 02 * Sec. 5. AS 43.75.290(7) is amended to read: 03 (7) "value" means 04 (A) the market value of the fishery resource as determined 05 by the prevailing price paid to fishermen for the unprocessed fishery 06 resource of the same kind and quality by fisheries businesses in the same 07 region or market area where the fishery resource was taken if 08 (i) the taking of the fishery resource is done in a boat 09 owned or leased by a person who holds a direct marketing fisheries 10 business license under AS 43.75.020(c); and 11 (ii) the fishery resource was sold to a buyer other 12 than a fishery business licensed under AS 43.75.020(a); 13 (B) for fisheries resources other than those described in (A) 14 of this paragraph, the market value of the fishery [FISHERIES] resource if 15 the taking of the fishery [FISHERIES] resource is done in company-owned or 16 company-subsidized boats operated by employees of the company or in boats 17 that are operated under lease to or from the company or other arrangement with 18 the company and if the fishery [FISHERIES] resource is delivered to the 19 company; in this subparagraph, "company" means a fisheries business, a 20 subsidiary of a fisheries business, or a subsidiary of a parent company of a 21 fisheries business; "company" does not include a direct marketing fisheries 22 business licensed under AS 43.75.020(c); or 23 (C) [(B)] for fishery [FISHERIES] resources other than those 24 described in (A) or (B) of this paragraph, the actual price paid for the fishery 25 [FISHERIES] resource by the fisheries business to the fisherman, including 26 indirect consideration and bonus amounts paid for fuel, supplies, gear, ice, 27 handling, tender fees, or delivery, whether paid at the time of purchase of the 28 fishery [FISHERIES] resource or tendered as a deferred or delayed payment; 29 in this subparagraph, "delivery" means 30 (i) transportation of the fishery [FISHERIES] resource 31 from the boat or vessel on which the product was taken to a tender; or
01 (ii) if delivery was not to a tender, transportation of the 02 fishery [FISHERIES] resource from the boat or vessel on which the 03 product was taken to a shore-based facility in which delivery of the 04 fishery [FISHERIES] resource is normally accepted. 05 * Sec. 6. AS 43.76.025(a) is amended to read: 06 (a) Except as otherwise provided under (d) of this section, a [A] buyer who 07 acquires fishery [FISHERIES] resources that are subject to a salmon enhancement tax 08 imposed by AS 43.76.010, 43.76.011, or 43.76.012 shall collect the salmon 09 enhancement tax at the time of purchase, and shall remit the total salmon enhancement 10 tax collected during each month to the Department of Revenue [DEPARTMENT] by 11 the last day of the next month. 12 * Sec. 7. AS 43.76.025 is amended by adding a new subsection to read: 13 (d) A direct marketing fisheries business licensed under AS 43.75.020(c) or a 14 commercial fisherman who transfers possession of salmon to a buyer who is not a 15 fisheries business licensed under AS 43.75 is liable for the payment of a salmon 16 enhancement tax imposed by AS 43.76.010, 43.76.011, or 43.76.012 if, at the time 17 possession of the salmon is transferred to a buyer, the salmon enhancement tax 18 payable on the salmon has not been collected. If a direct marketing fisheries business 19 or commercial fisherman is liable for payment of the salmon enhancement tax under 20 this subsection, the direct marketing fisheries business or commercial fisherman shall 21 comply with the requirements of (b) of this section to maintain records and to report 22 the liability for payment of the tax. Notwithstanding (a) of this section, a person 23 subject to this subsection shall remit the total salmon enhancement tax payable during 24 the calendar year to the Department of Revenue before April 1 after close of the 25 calendar year. 26 * Sec. 8. AS 43.76.120(a) is amended to read: 27 (a) Except as otherwise provided under (e) of this section, a [A] buyer who 28 acquires salmon that is subject to a salmon marketing tax imposed by AS 43.76.110 29 shall collect the salmon marketing tax at the time of purchase and shall remit the total 30 salmon marketing tax collected during each month to the Department of Revenue by 31 the last day of the next month.
01 * Sec. 9. AS 43.76.120 is amended by adding a new subsection to read: 02 (e) A direct marketing fisheries business licensed under AS 43.75.020(c) or a 03 commercial fisherman who transfers possession of salmon to a buyer who is not a 04 fisheries business licensed under AS 43.75 is liable for the payment of a salmon 05 marketing tax imposed by AS 43.76.110 if, at the time possession of the salmon is 06 transferred to a buyer, the salmon marketing tax payable on the salmon has not been 07 collected. If a direct marketing fisheries business or commercial fisherman is liable 08 for payment of the salmon marketing tax under this subsection, the direct marketing 09 fisheries business or commercial fisherman shall comply with the requirements under 10 (b) of this section to maintain records and to make reports to the Department of 11 Revenue. Notwithstanding (a) of this section, a person subject to this subsection shall 12 remit the total salmon marketing tax payable during the calendar year to the 13 Department of Revenue before April 1 after close of the calendar year. 14 * Sec. 10. AS 43.76.190(a) is amended to read: 15 (a) Except as otherwise provided under (e) of this section, a [A] buyer who 16 acquires a fishery resource that is subject to a dive fishery management assessment 17 levied under AS 43.76.150(b), (c), (d), or (e) shall collect the dive fishery management 18 assessment at the time of purchase and shall remit the total dive fishery management 19 assessment collected during each calendar quarter to the Department of Revenue by 20 the last day of the month following the end of the calendar quarter. In this subsection, 21 "calendar quarter" means each of the three-month periods ending March 31, June 30, 22 September 30, and December 31. 23 * Sec. 11. AS 43.76.190 is amended by adding a new subsection to read: 24 (e) A direct marketing fisheries business licensed under AS 43.75.020(c) or a 25 commercial fisherman who transfers possession of a fishery resource to a buyer who is 26 not a fisheries business licensed under AS 43.75 is liable for payment of a dive fishery 27 management assessment levied under AS 43.76.150(b), (c), (d), or (e) if, at the time 28 possession of the fishery resource is transferred to a buyer, the dive fishery 29 management assessment payable on the fishery resource has not been collected. If a 30 direct marketing fisheries business or commercial fisherman is liable for payment of a 31 dive fishery management assessment under this subsection, the direct marketing
01 fisheries business or commercial fisherman shall comply with the requirement to 02 maintain records under (b) of this section. Notwithstanding (a) of this section, a 03 person subject to this subsection shall remit the total dive fishery management 04 assessment payable during the calendar year to the Department of Revenue before 05 April 1 after close of the calendar year. 06 * Sec. 12. AS 43.76.260(a) is amended to read: 07 (a) Except as otherwise provided under (f) of this section, a [A] buyer who 08 acquires salmon that is subject to a salmon fishery assessment levied under 09 AS 43.76.220 shall collect the salmon fishery assessment at the time of purchase and 10 shall remit the total salmon fishery assessment collected during each month to the 11 Department of Revenue [DEPARTMENT] by the last day of the next month. 12 * Sec. 13. AS 43.76.260 is amended by adding a new subsection to read: 13 (f) A direct marketing fisheries business licensed under AS 43.75.020(c) or a 14 commercial fisherman who transfers possession of salmon to a buyer who is not a 15 fisheries business licensed under AS 43.75 is liable for the payment of a salmon 16 fishery assessment levied under AS 43.76.220 if, at the time possession of the fishery 17 resource is transferred to a buyer, the salmon fishery assessment payable on the 18 salmon has not been collected. If a direct marketing fisheries business or commercial 19 fisherman is liable for payment of the salmon fishery assessment under this 20 subsection, the direct marketing fisheries business or commercial fisherman shall 21 comply with the requirement under (b) of this section to maintain records. 22 Notwithstanding (a) of this section, a person subject to this subsection shall remit the 23 total salmon fishery assessment payable during the calendar year to the Department of 24 Revenue before April 1 after close of the calendar year. 25 * Sec. 14. AS 43.76.310(a) is amended to read: 26 (a) Except as otherwise provided under (f) of this section, a [A] buyer who 27 acquires fish that are subject to a permit buy-back assessment imposed by 28 AS 43.76.300 shall collect the permit buy-back assessment at the time of purchase and 29 shall remit the total permit buy-back assessment collected during each month to the 30 Department of Revenue [DEPARTMENT] by the last day of the next month. 31 * Sec. 15. AS 43.76.310 is amended by adding a new subsection to read:
01 (f) A direct marketing fisheries business licensed under AS 43.75.020(c) or a 02 commercial fisherman who transfers possession of fish to a buyer who is not a 03 fisheries business licensed under AS 43.75 is liable for the payment of a permit buy- 04 back assessment imposed by AS 43.76.300 if, at the time possession of the fish is 05 transferred to a buyer, the permit buy-back assessment payable on the fish has not 06 been collected. If a direct marketing fisheries business or commercial fisherman is 07 liable for payment of a permit buy-back assessment under this subsection, the direct 08 marketing fisheries business or commercial fisherman shall comply with the 09 requirements under (b) of this section to maintain records and report the value of fish 10 acquired during the preceding year. Notwithstanding (a) of this section, a person 11 subject to this subsection shall remit the total permit buy-back assessment payable 12 during the calendar year to the Department of Revenue before April 1 after close of 13 the calendar year. 14 * Sec. 16. The uncodified law of the State of Alaska is amended by adding a new section to 15 read: 16 ADOPTION OF REGULATIONS. The Department of Revenue shall adopt 17 regulations it considers necessary for the administration of this Act, but the regulations may 18 not take effect until January 1, 2005. 19 * Sec. 17. Section 16 of this Act takes effect immediately under AS 01.10.070(c). 20 * Sec. 18. Except as provided under sec. 17 of this Act, this Act takes effect January 1, 21 2005.