CSHB 155(FIN): "An Act repealing an exploration incentive credit; amending the calculation of adjusted gross income for purposes of the tax on gambling activities aboard large passenger vessels; repealing the amount that may be deducted from the motor fuel tax to cover the expense of accounting and filing for the monthly tax return; repealing a provision allowing an investigation expense under the Alaska Small Loans Act to be in place of a fee required under the Alaska Business License Act; repealing the amount that may be deducted from the tobacco excise tax to cover the expense of accounting and filing for the monthly tax return; repealing the discount on cigarette tax stamps provided as compensation for affixing the stamps to packages; and providing for an effective date."
00 CS FOR HOUSE BILL NO. 155(FIN) 01 "An Act repealing an exploration incentive credit; amending the calculation of adjusted 02 gross income for purposes of the tax on gambling activities aboard large passenger 03 vessels; repealing the amount that may be deducted from the motor fuel tax to cover the 04 expense of accounting and filing for the monthly tax return; repealing a provision 05 allowing an investigation expense under the Alaska Small Loans Act to be in place of a 06 fee required under the Alaska Business License Act; repealing the amount that may be 07 deducted from the tobacco excise tax to cover the expense of accounting and filing for 08 the monthly tax return; repealing the discount on cigarette tax stamps provided as 09 compensation for affixing the stamps to packages; and providing for an effective date." 10 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 11 * Section 1. AS 41.09.010(a) is amended to read: 12 (a) The [UNDER AN INCENTIVE PROGRAM DISTINCT FROM THE
01 EXPLORATION INCENTIVE CREDIT AUTHORIZED BY AS 38.05.180(i), THE] 02 commissioner may extend to a qualified applicant an exploration incentive credit for 03 each of the following activities performed on land in the state, regardless of whether 04 the land is state-owned land: 05 (1) geophysical work [ON LAND THAT IS NOT SUBJECT TO A 06 CREDIT UNDER AS 38.05.180(i)]; 07 (2) drilling a stratigraphic test well; and 08 (3) drilling an exploratory well. 09 * Sec. 2. AS 41.09.010(b) is amended to read: 10 (b) An exploration incentive credit extended under (a) of this section may be 11 applied against 12 (1) [A PAYMENT OR OBLIGATION AGAINST WHICH A 13 CREDIT AUTHORIZED BY AS 38.05.180(i) MAY BE CLAIMED; 14 (2)] taxes payable under AS 43.20; and 15 (2) [(3)] oil and gas bonus payments due the state under 16 AS 38.05.180(f). 17 * Sec. 3. AS 43.20.043(g) is amended to read: 18 (g) A taxpayer that obtains a credit for a qualified capital investment or cost 19 incurred for qualified services under this section may not also claim a tax credit or 20 royalty modification for the same qualified capital investment or cost incurred for 21 qualified services under [AS 38.05.180(i),] AS 41.09.010, AS 43.55.023, or 22 43.55.025. However, a taxpayer may elect not to obtain a credit under this section in 23 order to qualify for a credit provided under [AS 38.05.180(i),] AS 41.09.010, 24 AS 43.55.023, or 43.55.025. 25 * Sec. 4. AS 43.35.210 is amended to read: 26 Sec. 43.35.210. Tax on gambling activities. There is imposed on the operator 27 of gaming or gambling activities aboard large passenger vessels in the state a tax of 33 28 percent of the adjusted gross income from those activities. "Adjusted gross income" 29 means gross income less prizes awarded and [FEDERAL AND] municipal taxes paid 30 or owed on the income. The tax shall be collected and is due and payable to the 31 Department of Revenue in the manner and at the times required by the Department of
01 Revenue. 02 * Sec. 5. AS 43.40.010(c) is amended to read: 03 (c) Every dealer who sells or otherwise transfers motor fuel in the state shall 04 collect the tax at the time of sale, and remit the total tax collected during each calendar 05 month of each year to the department by the last day of each succeeding month. Every 06 user shall likewise remit the tax accrued on motor fuel actually used by the user during 07 each month. [IF THE MONTHLY TAX RETURN IS TIMELY FILED, ONE 08 PERCENT OF THE TOTAL MONTHLY TAX DUE, LIMITED TO A MAXIMUM 09 OF $100, MAY BE DEDUCTED AND RETAINED TO COVER THE EXPENSE OF 10 ACCOUNTING AND FILING THE MONTHLY TAX RETURN.] At the time the 11 remittance is made, each dealer or user shall submit a statement to the department 12 showing all fuel which the dealer or user has distributed or used during the month. 13 * Sec. 6. AS 43.50.590(a) is amended to read: 14 (a) The department shall adopt procedures for a refund or credit to a licensee 15 in the amount of the denominated value [, LESS THE DISCOUNT GIVEN UNDER 16 AS 43.50.540,] for 17 (1) unused or damaged stamps; 18 (2) stamps affixed to cigarette packages that have become unfit for use 19 or sale, are destroyed, or are returned to the manufacturer for credit or replacement if 20 the licensee provides proof acceptable to the department that the cigarettes have not 21 been and will not be consumed in this state; or 22 (3) stamps affixed to cigarette packages that are sold or distributed 23 outside the state if the licensee provides proof acceptable to the department that the 24 cigarettes have not been and will not be consumed in this state and the licensee is 25 properly licensed in the jurisdictions outside the state where the sales or distributions 26 are made. 27 * Sec. 7. AS 43.55.011(m) is amended to read: 28 (m) Notwithstanding any contrary provision of [AS 38.05.180(i),] 29 AS 41.09.010, AS 43.55.024, or 43.55.025, the department shall provide by regulation 30 a method to ensure that, for a calendar year for which a producer's tax liability is 31 limited by (j), (k), or (o) of this section, tax credits based on a lease expenditure
01 incurred before January 1, 2011, that are otherwise available under [AS 38.05.180(i),] 02 AS 41.09.010, AS 43.55.024, or 43.55.025 and allocated to gas subject to the 03 limitations in (j), (k), and (o) of this section are accounted for as though the credits had 04 been applied first against a tax liability calculated without regard to the limitations 05 under (j), (k), and (o) of this section so as to reduce the tax liability to the maximum 06 amount provided for under (j) or (o) of this section for the production of gas or (k) of 07 this section for the production of oil. The regulation must provide for a reasonable 08 method to allocate tax credits to gas subject to (j) and (o) of this section. Only the 09 amount of a tax credit remaining after the accounting provided for under this 10 subsection may be used for a later calendar year, transferred to another person, or 11 applied against a tax levied on the production of oil or gas not subject to (j), (k), or (o) 12 of this section to the extent otherwise allowed. 13 * Sec. 8. AS 43.55.023(a) is amended to read: 14 (a) A producer or explorer may take a tax credit for a qualified capital 15 expenditure as follows: 16 (1) notwithstanding that a qualified capital expenditure may be a 17 deductible lease expenditure for purposes of calculating the production tax value of oil 18 and gas under AS 43.55.160(a), unless a credit for that expenditure is taken under 19 [AS 38.05.180(i),] AS 41.09.010, AS 43.20.043, or AS 43.55.025, a producer or 20 explorer that incurs a qualified capital expenditure may also elect to apply a tax credit 21 against a tax levied by AS 43.55.011(e) in the amount of 20 percent of that 22 expenditure; 23 (2) a producer or explorer may take a credit for a qualified capital 24 expenditure incurred in connection with geological or geophysical exploration or in 25 connection with an exploration well only if the producer or explorer 26 (A) agrees, in writing, to the applicable provisions of 27 AS 43.55.025(f)(2); and 28 (B) submits to the Department of Natural Resources all data 29 that would be required to be submitted under AS 43.55.025(f)(2); 30 (3) a credit for a qualified capital expenditure incurred to explore for, 31 develop, or produce oil or gas deposits located north of 68 degrees North latitude may
01 be taken only if the expenditure is incurred before January 1, 2014. 02 * Sec. 9. AS 43.55.023(l) is amended to read: 03 (l) A producer or explorer may apply for a tax credit for a well lease 04 expenditure incurred in the state south of 68 degrees North latitude after June 30, 05 2010, as follows: 06 (1) notwithstanding that a well lease expenditure incurred in the state 07 south of 68 degrees North latitude may be a deductible lease expenditure for purposes 08 of calculating the production tax value of oil and gas under AS 43.55.160(a), unless a 09 credit for that expenditure is taken under (a) of this section, [AS 38.05.180(i),] 10 AS 41.09.010, AS 43.20.043, or AS 43.55.025, a producer or explorer that incurs a 11 well lease expenditure in the state south of 68 degrees North latitude may elect to 12 apply a tax credit against a tax levied by AS 43.55.011(e) in the amount of 40 percent 13 of that expenditure; a tax credit under this paragraph may be applied for a single 14 calendar year; 15 (2) a producer or explorer may take a credit for a well lease 16 expenditure incurred in the state south of 68 degrees North latitude in connection with 17 geological or geophysical exploration or in connection with an exploration well only if 18 the producer or explorer 19 (A) agrees, in writing, to the applicable provisions of 20 AS 43.55.025(f)(2); and 21 (B) submits to the Department of Natural Resources all data 22 that would be required to be submitted under AS 43.55.025(f)(2). 23 * Sec. 10. AS 06.20.030(c); AS 38.05.180(i); AS 41.09.030; AS 43.50.330(b), 43.50.540(c), 24 and 43.50.540(h) are repealed. 25 * Sec. 11. The uncodified law of the State of Alaska is amended by adding a new section to 26 read: 27 TRANSITION. The repeal of AS 38.05.180(i) by sec. 10 of this Act does not prohibit 28 the Department of Natural Resources from issuing a credit for an expenditure incurred before 29 the effective date of sec. 10 of this Act. A credit issued under former AS 38.05.180(i) before 30 the effective date of sec. 10 of this Act may, during the period established by the 31 commissioner under former AS 38.05.180(i), be assigned or used to offset taxes imposed
01 under the provisions identified in former AS 38.05.180(i). 02 * Sec. 12. Section 4 of this Act takes effect January 1, 2016. 03 * Sec. 13. Except as provided in sec. 12 of this Act, this Act takes effect July 1, 2015.