SB 286: "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 SENATE BILL NO. 286 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 perform processing on the vessel or on shore on fishery resources owned by the 12 licensee from the time of harvest through sale, as defined by the department by 13 regulation, and may place processed or unprocessed fishery resources caught on the 14 vessel into commerce in the state or outside the state. An application for a direct 15 marketing fisheries business license shall be filed with the department and 16 accompanied by an annual fee of $25. A separate direct marketing fisheries business 17 license and annual license fee are required for each vessel on which processing is 18 performed. The application must state the name and address of the applicant, the 19 fishery resources for which the applicant holds a commercial fishing entry permit or 20 interim-use permit or quota share, a description of each vessel and shore-based facility 21 where processing will occur, and other information that the department prescribes by 22 regulation. The application must state that the applicant agrees to pay the tax imposed 23 by AS 43.75.015(d) or 43.75.100, and that the applicant will make a return and pay the 24 tax at the time provided by law. A person who holds a direct marketing fisheries 25 business license may not under that license (1) purchase fishery resources for resale or 26 processing for sale; or (2) process fishery resources for another licensed commercial 27 fisherman or for a fisheries business licensed under this chapter. In this subsection, 28 "licensed commercial fisherman" means a natural person who holds a commercial 29 fishing entry permit or interim-use permit issued under AS 16.43 or a quota share 30 issued under federal law. 31 * Sec. 5. AS 43.75.290(7) is amended to read:
01 (7) "value" means 02 (A) the market value of the fishery resource as determined 03 by the prevailing price paid to fishermen for the fishery resource of the 04 same kind and quality by fisheries businesses in the same region or 05 market area where the fishery resource was taken if 06 (i) the taking of the fishery resource is done in a boat 07 owned or leased by a person who holds a direct marketing fisheries 08 business license under AS 43.75.020(c); and 09 (ii) the fishery resource was sold to a buyer other 10 than a fishery business licensed under AS 43.75.020(a); 11 (B) for fisheries resources other than those described in (A) 12 of this paragraph, the market value of the fishery [FISHERIES] resource if 13 the taking of the fishery [FISHERIES] resource is done in company-owned or 14 company-subsidized boats operated by employees of the company or in boats 15 that are operated under lease to or from the company or other arrangement with 16 the company and if the fishery [FISHERIES] resource is delivered to the 17 company; in this subparagraph, "company" means a fisheries business, a 18 subsidiary of a fisheries business, or a subsidiary of a parent company of a 19 fisheries business; "company" does not include a direct marketing fisheries 20 business licensed under AS 43.75.020(c); or 21 (C) [(B)] for fishery [FISHERIES] resources other than those 22 described in (A) or (B) of this paragraph, the actual price paid for the fishery 23 [FISHERIES] resource by the fisheries business to the fisherman, including 24 indirect consideration and bonus amounts paid for fuel, supplies, gear, ice, 25 handling, tender fees, or delivery, whether paid at the time of purchase of the 26 fishery [FISHERIES] resource or tendered as a deferred or delayed payment; 27 in this subparagraph, "delivery" means 28 (i) transportation of the fishery [FISHERIES] resource 29 from the boat or vessel on which the product was taken to a tender; or 30 (ii) if delivery was not to a tender, transportation of the 31 fishery [FISHERIES] resource from the boat or vessel on which the
01 product was taken to a shore-based facility in which delivery of the 02 fishery [FISHERIES] resource is normally accepted. 03 * Sec. 6. AS 43.76.025(a) is amended to read: 04 (a) Except as otherwise provided under (d) of this section, a [A] buyer who 05 acquires fishery [FISHERIES] resources that are subject to a salmon enhancement tax 06 imposed by AS 43.76.010, 43.76.011, or 43.76.012 shall collect the salmon 07 enhancement tax at the time of purchase, and shall remit the total salmon enhancement 08 tax collected during each month to the Department of Revenue [DEPARTMENT] by 09 the last day of the next month. 10 * Sec. 7. AS 43.76.025 is amended by adding a new subsection to read: 11 (d) A direct marketing fisheries business licensed under AS 43.75.020(c) or a 12 commercial fisherman who transfers possession of salmon to a buyer who is not a 13 fisheries business licensed under AS 43.75 is liable for the payment of a salmon 14 enhancement tax imposed by AS 43.76.010, 43.76.011, or 43.76.012 if, at the time 15 possession of the salmon is transferred to a buyer, the salmon enhancement tax 16 payable on the salmon has not been collected. If a direct marketing fisheries business 17 or commercial fisherman is liable for payment of the salmon enhancement tax under 18 this subsection, the direct marketing fisheries business or commercial fisherman shall 19 comply with the requirements of (b) of this section to maintain records and to report 20 the liability for payment of the tax. Notwithstanding (a) of this section, a person 21 subject to this subsection shall remit the total salmon enhancement tax payable during 22 the calendar year to the Department of Revenue before April 1 after close of the 23 calendar year. 24 * Sec. 8. AS 43.76.120(a) is amended to read: 25 (a) Except as otherwise provided under (e) of this section, a [A] buyer who 26 acquires salmon that is subject to a salmon marketing tax imposed by AS 43.76.110 27 shall collect the salmon marketing tax at the time of purchase and shall remit the total 28 salmon marketing tax collected during each month to the Department of Revenue by 29 the last day of the next month. 30 * Sec. 9. AS 43.76.120 is amended by adding a new subsection to read: 31 (e) A direct marketing fisheries business licensed under AS 43.75.020(c) or a
01 commercial fisherman who transfers possession of salmon to a buyer who is not a 02 fisheries business licensed under AS 43.75 is liable for the payment of a salmon 03 marketing tax imposed by AS 43.76.110 if, at the time possession of the salmon is 04 transferred to a buyer, the salmon marketing tax payable on the salmon has not been 05 collected. If a direct marketing fisheries business or commercial fisherman is liable 06 for payment of the salmon marketing tax under this subsection, the direct marketing 07 fisheries business or commercial fisherman shall comply with the requirements under 08 (b) of this section to maintain records and to make reports to the Department of 09 Revenue. Notwithstanding (a) of this section, a person subject to this subsection shall 10 remit the total salmon marketing tax payable during the calendar year to the 11 Department of Revenue before April 1 after close of the calendar year. 12 * Sec. 10. AS 43.76.190(a) is amended to read: 13 (a) Except as otherwise provided under (e) of this section, a [A] buyer who 14 acquires a fishery resource that is subject to a dive fishery management assessment 15 levied under AS 43.76.150(b), (c), (d), or (e) shall collect the dive fishery management 16 assessment at the time of purchase and shall remit the total dive fishery management 17 assessment collected during each calendar quarter to the Department of Revenue by 18 the last day of the month following the end of the calendar quarter. In this subsection, 19 "calendar quarter" means each of the three-month periods ending March 31, June 30, 20 September 30, and December 31. 21 * Sec. 11. AS 43.76.190 is amended by adding a new subsection to read: 22 (e) A direct marketing fisheries business licensed under AS 43.75.020(c) or a 23 commercial fisherman who transfers possession of a fishery resource to a buyer who is 24 not a fisheries business licensed under AS 43.75 is liable for payment of a dive fishery 25 management assessment levied under AS 43.76.150(b), (c), (d), or (e) if, at the time 26 possession of the fishery resource is transferred to a buyer, the dive fishery 27 management assessment payable on the fishery resource has not been collected. If a 28 direct marketing fisheries business or commercial fisherman is liable for payment of a 29 dive fishery management assessment under this subsection, the direct marketing 30 fisheries business or commercial fisherman shall comply with the requirement to 31 maintain records under (b) of this section. Notwithstanding (a) of this section, a
01 person subject to this subsection shall remit the total dive fishery management 02 assessment payable during the calendar year to the Department of Revenue before 03 April 1 after close of the calendar year. 04 * Sec. 12. AS 43.76.260(a) is amended to read: 05 (a) Except as otherwise provided under (f) of this section, a [A] buyer who 06 acquires salmon that is subject to a salmon fishery assessment levied under 07 AS 43.76.220 shall collect the salmon fishery assessment at the time of purchase and 08 shall remit the total salmon fishery assessment collected during each month to the 09 Department of Revenue [DEPARTMENT] by the last day of the next month. 10 * Sec. 13. AS 43.76.260 is amended by adding a new subsection to read: 11 (f) A direct marketing fisheries business licensed under AS 43.75.020(c) or a 12 commercial fisherman who transfers possession of salmon to a buyer who is not a 13 fisheries business licensed under AS 43.75 is liable for the payment of a salmon 14 fishery assessment levied under AS 43.76.220 if, at the time possession of the fishery 15 resource is transferred to a buyer, the salmon fishery assessment payable on the 16 salmon has not been collected. If a direct marketing fisheries business or commercial 17 fisherman is liable for payment of the salmon fishery assessment under this 18 subsection, the direct marketing fisheries business or commercial fisherman shall 19 comply with the requirement under (b) of this section to maintain records. 20 Notwithstanding (a) of this section, a person subject to this subsection shall remit the 21 total salmon fishery assessment payable during the calendar year to the Department of 22 Revenue before April 1 after close of the calendar year. 23 * Sec. 14. AS 43.76.310(a) is amended to read: 24 (a) Except as otherwise provided under (f) of this section, a [A] buyer who 25 acquires fish that are subject to a permit buy-back assessment imposed by 26 AS 43.76.300 shall collect the permit buy-back assessment at the time of purchase and 27 shall remit the total permit buy-back assessment collected during each month to the 28 Department of Revenue [DEPARTMENT] by the last day of the next month. 29 * Sec. 15. AS 43.76.310 is amended by adding a new subsection to read: 30 (f) A direct marketing fisheries business licensed under AS 43.75.020(c) or a 31 commercial fisherman who transfers possession of fish to a buyer who is not a
01 fisheries business licensed under AS 43.75 is liable for the payment of a permit buy- 02 back assessment imposed by AS 43.76.300 if, at the time possession of the fish is 03 transferred to a buyer, the permit buy-back assessment payable on the fish has not 04 been collected. If a direct marketing fisheries business or commercial fisherman is 05 liable for payment of a permit buy-back assessment under this subsection, the direct 06 marketing fisheries business or commercial fisherman shall comply with the 07 requirements under (b) of this section to maintain records and report the value of fish 08 acquired during the preceding year. Notwithstanding (a) of this section, a person 09 subject to this subsection shall remit the total permit buy-back assessment payable 10 during the calendar year to the Department of Revenue before April 1 after close of 11 the calendar year. 12 * Sec. 16. The uncodified law of the State of Alaska is amended by adding a new section to 13 read: 14 ADOPTION OF REGULATIONS. The Department of Revenue shall adopt 15 regulations it considers necessary for the administration of this Act, but the regulations may 16 not take effect until January 1, 2005. 17 * Sec. 17. Section 16 of this Act takes effect immediately under AS 01.10.070(c). 18 * Sec. 18. Except as provided under sec. 17 of this Act, this Act takes effect January 1, 19 2005.