HB 253: "An Act requiring the electronic filing of a tax return or report with the Department of Revenue; establishing a civil penalty for failure to electronically file a return or report; relating to exemptions from the mining license tax; relating to the mining license tax rate; relating to mining license application, renewal, and fees; and providing for an effective date."
00 HOUSE BILL NO. 253 01 "An Act requiring the electronic filing of a tax return or report with the Department of 02 Revenue; establishing a civil penalty for failure to electronically file a return or report; 03 relating to exemptions from the mining license tax; relating to the mining license tax 04 rate; relating to mining license application, renewal, and fees; and providing for an 05 effective date." 06 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 07 * Section 1. AS 43.05.220 is amended to add a new subsection to read: 08 (f) A penalty of $25 or one percent of the total tax before any payment, 09 whichever is greater, shall be assessed against a taxpayer that fails to electronically 10 submit a return or report under AS 43.05.222, unless the taxpayer has received an 11 exemption under AS 43.05.222 or can show reasonable cause. 12 * Sec. 2. AS 43.05 is amended by adding a new section to read: 13 Sec. 43.05.222. Electronic submission of return or report. (a) A taxpayer
01 required to submit a return or report for a tax levied under AS 43 or any other tax 02 administered by the department shall submit the return or report electronically in a 03 format prescribed by the department. Unless the taxpayer has received an exemption 04 under (b) of this section or can show reasonable cause, a return or report not submitted 05 electronically is subject to a civil penalty under AS 43.05.220. 06 (b) A taxpayer may request an exemption from the requirement that a return or 07 report be submitted electronically. The taxpayer or taxpayer's representative shall 08 contact the department and request the exemption before the return or report is due 09 and shall submit evidence that the taxpayer does not have the capability to submit the 10 return or report electronically. An exemption granted under this subsection is valid for 11 two years after the first tax filing due date after the exemption is granted; after the two 12 year period, the taxpayer may apply for another exemption. 13 * Sec. 3. AS 43.65.010(a) is amended to read: 14 (a) A person prosecuting or attempting to prosecute, or engaging in the 15 business of mining in the state shall obtain a license from the department. [ALL NEW 16 MINING OPERATIONS ARE EXEMPT FROM THE TAX LEVIED BY THIS 17 CHAPTER FOR THREE AND ONE-HALF YEARS AFTER PRODUCTION 18 BEGINS.] 19 * Sec. 4. AS 43.65.010(c) is amended to read: 20 (c) The license tax on mining is as follows: upon the net income of the 21 taxpayer from the property in the state, computed with allowable depletion, plus 22 royalty received in connection with mining property in the state 23 over $40,000 and not over $50,000 ....................... 3 percent 24 over $50,000 and not over $100,000 ................... $1,500 plus 25 5 percent of the excess over $50,000 26 over $100,000 ..................................................... $4,000 plus 27 9 [7] percent of the excess over $100,000. 28 * Sec. 5. AS 43.65.020(d) is amended to read: 29 (d) [A TAXPAYER'S RETURN SHALL BE MADE TO THE 30 DEPARTMENT AT JUNEAU]. A taxpayer shall make a return either on a calendar 31 year or fiscal year basis, in conformance with the basis used in making the taxpayer's
01 return for federal income tax purposes. 02 * Sec. 6. AS 43.65.030 is amended to read: 03 Sec. 43.65.030. Application, renewal, and fees [FOR RENEWALS]. The 04 fee for a mining license is $50. Application for renewal of a mining license shall be 05 made before January 1 [MAY 1] of each year. The fee for a renewal is $50. 06 * Sec. 7. AS 27.30.030(b)(2); AS 43.65.010(b), and 43.65.060(4) are repealed. 07 * Sec. 8. The uncodified law of the State of Alaska is amended by adding a new section to 08 read: 09 APPLICABILITY. (a) AS 43.65.010(a), as amended by sec. 3 of this Act, applies to 10 all mining operations in which production has begun on or after the effective date of this Act. 11 (b) AS 43.65.010(c), as amended by sec. 4 of this Act, applies to net income of the 12 taxpayer from the property in the state during a taxable year that begins on or after the 13 effective date of sec. 4 of this Act. 14 * Sec. 9. The uncodified law of the State of Alaska is amended by adding a new section to 15 read: 16 TRANSITION. In administering the application of the exploration incentive credit 17 under AS 27.30, AS 27.30.030(b)(2), as that subsection read on June 30, 2016, applies to an 18 accounting under AS 27.30.030(b) for a person who began mining production before the 19 effective date of this Act. 20 * Sec. 10. The uncodified law of the State of Alaska is amended by adding a new section to 21 read: 22 TRANSITION: REGULATIONS. The Department of Revenue may adopt regulations 23 necessary to implement the changes made by this Act. The regulations take effect under 24 AS 44.62 (Administrative Procedure Act), but not before the effective date of the law 25 implemented by the regulation. 26 * Sec. 11. Section 10 of this Act takes effect immediately under AS 01.10.070(c). 27 * Sec. 12. Except as provided in sec. 11 of this Act, this Act takes effect July 1, 2016.