Enrolled SB 158: Prohibiting the imposition of municipal sales and use taxes on state construction contracts and certain subcontracts; and providing for an effective date.
00Enrolled SB 158 01 Prohibiting the imposition of municipal sales and use taxes on state construction contracts and 02 certain subcontracts; and providing for an effective date. 03 _______________ 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).