SB 158: "An Act prohibiting the imposition of municipal sales and use taxes on state construction contracts and certain subcontracts; and providing for an effective date."
00 SENATE BILL NO. 158 01 "An Act prohibiting the imposition of municipal sales and use taxes on state 02 construction contracts and certain subcontracts; and providing for an effective date." 03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 04 * Section 1. AS 29.10.200(51) is amended to read: 05 (51) AS 29.45.650(c), (d), (e), (f), (i), [AND] (j), and (k) (sales and 06 use tax); 07 * Sec. 2. AS 29.10.200(52) is amended to read: 08 (52) AS 29.45.700(d), [AND] (e), and (g) (sales and use tax); 09 * Sec. 3. AS 29.45.650 is amended by adding a new subsection to read: 10 (k) A borough may not levy or collect a sales or use tax on a construction 11 contract awarded by the state or a state agency, or on a subcontract awarded in 12 connection with the project funded under the construction contract. This subsection 13 applies to home rule and general law municipalities. 14 * Sec. 4. AS 29.45.700 is amended by adding a new subsection to read:
01 (g) A city may not levy or collect a sales or use tax on a construction contract 02 awarded by the state or a state agency, or on a subcontract awarded in connection with 03 the project funded under the construction contract. This subsection applies to home 04 rule and general law cities. 05 * Sec. 5. This Act takes effect immediately under AS 01.10.070(c).