CSHB 25(CRA): "An Act relating to the sharing of fisheries business tax revenue with municipalities; and providing for an effective date."
00 CS FOR HOUSE BILL NO. 25(CRA) 01 "An Act relating to the sharing of fisheries business tax revenue with municipalities; 02 and providing for an effective date." 03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 04 * Section 1. AS 29.60.450 is amended by adding a new subsection to read: 05 (g) In addition to the amounts apportioned under (b)(1) of this section, each 06 fiscal year, a city with a population of 500 or less and a borough with a population of 07 3,000 or less shall also receive a hold harmless payment that is equal to the difference 08 between the amount that the city or borough received under (b)(1) of this section and 09 the amount that the city or borough would have received under (b)(1) of this section if 10 tax revenue collected under AS 43.75 on the value of fishery resources landed in a 11 municipality and exported from the state without being processed in the state had not 12 been available for payment to municipalities under AS 43.75.130(a) and (d). 13 * Sec. 2. AS 43.75.130(a) is amended to read: 14 (a) Subject to appropriation by the legislature and to [EXCEPT AS
01 PROVIDED IN] (d) of this section, the commissioner shall pay 02 (1) to each unified municipality and to each city located in the 03 unorganized borough, 50 percent of the amount of tax revenue collected in the 04 municipality from taxes levied under this chapter; 05 (2) to each city located within a borough, 25 percent of the amount of 06 tax revenue collected in the city from taxes levied under this chapter; and 07 (3) to each borough 08 (A) 50 percent of the amount of tax revenue collected in the 09 area of the borough outside cities from taxes levied under this chapter; and 10 (B) 25 percent of the amount of tax revenue collected in cities 11 located within the borough from taxes levied under this chapter. 12 * Sec. 3. AS 43.75.130(d) is amended to read: 13 (d) Notwithstanding the provisions of (a)(2) and (a)(3)(B) of this section, the 14 commissioner shall pay 15 (1) to each city that is located in a borough incorporated after June 16, 16 1987, the following percentages of the tax revenue collected in the city from taxes 17 levied under this chapter: 18 (A) 45 percent of the tax revenue [TAXES] collected during 19 the calendar year in which the borough is incorporated; 20 (B) 40 percent of the tax revenue [TAXES] collected during 21 the first calendar year after the calendar year in which the borough is 22 incorporated; 23 (C) 35 percent of the tax revenue [TAXES] collected during 24 the second calendar year after the calendar year in which the borough is 25 incorporated; and 26 (D) 30 percent of the tax revenue [TAXES] collected during 27 the third calendar year after the calendar year in which the borough is 28 incorporated; and 29 (2) to each borough that is incorporated after June 16, 1987, the 30 following percentages of the tax revenue collected in the cities located within the 31 borough from taxes levied under this chapter:
01 (A) 5 percent of the tax revenue [TAXES] collected during the 02 calendar year in which the borough is incorporated; 03 (B) 10 percent of the tax revenue [TAXES] collected during 04 the first calendar year after the calendar year in which the borough is 05 incorporated; 06 (C) 15 percent of the tax revenue [TAXES] collected during 07 the second calendar year after the calendar year in which the borough is 08 incorporated; and 09 (D) 20 percent of the tax revenue [TAXES] collected during 10 the third calendar year after the calendar year in which the borough is 11 incorporated. 12 * Sec. 4. AS 43.75.130(g) is amended to read: 13 (g) In this section, "tax revenue collected" means the revenue collected by 14 the department from taxes levied under this chapter on the value of fishery 15 resources that are either (1) processed in a municipality; or (2) first landed in a 16 municipality and exported from the state without being processed in the state; 17 "tax revenue collected" includes the amount credited against taxes under 18 AS 43.75.018. 19 * Sec. 5. AS 43.75.130 is amended by adding a new subsection to read: 20 (h) Notwithstanding (a) and (d) of this section, the amount available for 21 payment to municipalities under this section from the amount of tax revenue collected 22 by the department on the value of fishery resources that are sold to a buyer in the 23 municipality but not processed in the state shall be transferred by the department to the 24 Department of Commerce, Community, and Economic Development. The amount 25 required to hold harmless cities and boroughs under AS 29.60.450(g) shall be paid, 26 subject to appropriation, from the tax revenue retained by the department under this 27 subsection. After payment of the hold harmless amount under AS 29.60.450(g), the 28 amount that each municipality is otherwise entitled to receive under (a) or (d) of this 29 section from the amount of tax revenue collected by the department on the value of 30 fishery resources that are sold to a buyer in the municipality but not processed in the 31 state shall be reduced proportionately by the amount necessary to make the hold
01 harmless payment under AS 29.60.450(g), and the reduced amount shall be paid to the 02 municipalities to which the tax revenue collected is to be paid under (a) or (d) of this 03 section. 04 * Sec. 6. AS 43.75.137 is amended to read: 05 Sec. 43.75.137. Additional refund. Subject to appropriation by the 06 legislature [TO THE EXTENT THAT APPROPRIATIONS ARE AVAILABLE FOR 07 THE PURPOSE, AND NOTWITHSTANDING THE REQUIREMENT OF 08 AS 37.07.080(e) THAT APPROVAL OF THE OFFICE OF MANAGEMENT AND 09 BUDGET IS REQUIRED], an amount equal to 50 percent of the tax revenue that is 10 collected under this chapter from fisheries businesses and that is not subject to 11 division with a municipality under AS 43.75.130 shall be paid by [TRANSMITTED 12 EACH FISCAL YEAR, WITHOUT THE APPROVAL OF THE OFFICE OF 13 MANAGEMENT AND BUDGET, BY THE DEPARTMENT TO] the Department of 14 Commerce, Community, and Economic Development [FOR DISBURSAL] to eligible 15 municipalities under AS 29.60.450. 16 * Sec. 7. This Act takes effect July 1, 2006.