SB 4001: "An Act relating to taxation, including establishing an individual income tax; relating to the marijuana tax and bonding requirements for marijuana cultivation facilities; relating to the exploration incentive credit; increasing the motor fuel tax; increasing the taxes on cigarettes and tobacco products; taxing electronic smoking products; adding a definition of 'electronic smoking product' and requiring labeling of an electronic smoking product; increasing the excise tax on alcoholic beverages; relating to exemptions from the mining license tax; removing the minimum and maximum restrictions on the annual base fee for the reissuance or renewal of an entry permit or an interim-use permit; increasing the mining license tax rate; relating to mining license application, renewal, and fees; increasing the fisheries business tax and fishery resource landing tax; relating to refunds to local governments; and providing for an effective date."
00 SENATE BILL NO. 4001 01 "An Act relating to taxation, including establishing an individual income tax; relating to 02 the marijuana tax and bonding requirements for marijuana cultivation facilities; 03 relating to the exploration incentive credit; increasing the motor fuel tax; increasing the 04 taxes on cigarettes and tobacco products; taxing electronic smoking products; adding a 05 definition of 'electronic smoking product' and requiring labeling of an electronic 06 smoking product; increasing the excise tax on alcoholic beverages; relating to 07 exemptions from the mining license tax; removing the minimum and maximum 08 restrictions on the annual base fee for the reissuance or renewal of an entry permit or an 09 interim-use permit; increasing the mining license tax rate; relating to mining license 10 application, renewal, and fees; increasing the fisheries business tax and fishery resource 11 landing tax; relating to refunds to local governments; and providing for an effective 12 date."
01 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 02 * Section 1. AS 16.43.160(c) is amended to read: 03 (c) The annual base fee for issuance or renewal of an entry permit or an 04 interim-use permit [MAY NOT BE LESS THAN $30 OR MORE THAN $3,000. THE 05 ANNUAL BASE FEE] must reasonably reflect the different rates of economic return 06 for different fisheries. In addition to the annual base fee established by the commission 07 under this subsection, a nonresident shall pay an annual nonresident surcharge for the 08 issuance or renewal of one or more entry permits or interim-use permits. The 09 commission shall establish the annual nonresident surcharge by regulation [AT AN 10 AMOUNT THAT IS AS CLOSE AS IS PRACTICABLE TO THE MAXIMUM 11 ALLOWED BY LAW]. 12 * Sec. 2. AS 17.38.200 is amended by adding a new section to read: 13 (j) A marijuana cultivation facility shall furnish the bond as required in 14 AS 43.61.050. The board shall suspend the license of a marijuana cultivation facility 15 that does not furnish the bond as required in AS 43.61.050. 16 * Sec. 3. AS 27.30.030(a) is amended to read: 17 (a) In a tax year [OR ROYALTY PAYMENT PERIOD], subject to (c) of this 18 section and the respective limitations of this subsection, the person may apply the 19 credit, the taking of which was approved under AS 27.30.020(2), against [(1)] taxes 20 payable by the person 21 (1) [(A)] under AS 43.65; application of the credit under this 22 paragraph [SUBPARAGRAPH] may not exceed the lesser of 23 (A) [(i)] 50 percent of the person's tax liability under AS 43.65 24 for the tax year that is related to production from the mining operation at which 25 the exploration activities occurred, as shown under (b) of this section; or 26 (B) [(ii)] 50 percent of the person's total tax liability under 27 AS 43.65 for the tax year; 28 (2) [(B)] under AS 43.20; application of the credit under this 29 paragraph [SUBPARAGRAPH] may not exceed the lesser of 30 (A) [(i)] an amount equal to the amount determined under 31 (1)(A) [(A)(i)] of this subsection [PARAGRAPH]; or
01 (B) [(ii)] 50 percent of the person's total tax liability under 02 AS 43.20 for the tax year [; AND 03 (2) MINERAL PRODUCTION ROYALTY PAYMENTS PAYABLE 04 BY THE PERSON UNDER AS 38.05.135 - 38.05.160 AND 38.05.212 FOR 05 PRODUCTION FROM THE MINING OPERATION AT WHICH THE 06 EXPLORATION ACTIVITIES OCCURRED; APPLICATION OF THE CREDIT 07 UNDER THIS PARAGRAPH MAY NOT EXCEED 50 PERCENT OF THE 08 PERSON'S MINERAL PRODUCTION ROYALTY PAYMENT LIABILITY FROM 09 THE MINING OPERATION AT WHICH THE EXPLORATION ACTIVITIES 10 OCCURRED]. 11 * Sec. 4. AS 27.30.030(b) is amended to read: 12 (b) If the person applies the credit against the person's tax liability under 13 (a)(1)(A) or (a)(2)(A) [(a)(1)(A)(i) OR (a)(1)(B)(i)] of this section, the commissioner 14 of revenue shall disallow application of the credit under that provision unless the 15 person files with the person's tax return an accounting of the person's mining operation 16 activities for each mining operation that is included in the tax return and as to which 17 the credit is being applied. The accounting of mining operation activities required by 18 this subsection shall be made 19 (1) on a form prescribed by the Department of Revenue; on the form, 20 the person shall 21 (A) identify the mining operations for which the credit is 22 claimed; and 23 (B) set out the gross income attributable to the mining 24 operations and other information about the mining operations that the 25 Department of Revenue may require; 26 (2) without regard to an exemption to which the person may be entitled 27 under AS 43.65.010(a). 28 * Sec. 5. AS 27.30.040 is amended to read: 29 Sec. 27.30.040. Credit may be carried forward. Except as its application is 30 limited by AS 27.30.030 and 27.30.050, a portion of a credit that is not applied under 31 AS 27.30.030 during a tax year [OR ROYALTY PAYMENT PERIOD] may be
01 carried forward to and applied during a subsequent tax year [OR ROYALTY 02 PAYMENT PERIOD]. 03 * Sec. 6. AS 27.30.050 is amended to read: 04 Sec. 27.30.050. Limit on application of credit. An exploration incentive 05 credit for a mining operation may not exceed $20,000,000 and must be applied within 06 15 tax years [OR ROYALTY PAYMENT PERIODS] after the taking of the credit is 07 approved under AS 27.30.020(2), but the tax years [OR ROYALTY PAYMENT 08 PERIODS] in which the credit is applied need not be 09 (1) the tax year [OR ROYALTY PAYMENT PERIOD] in which the 10 person first incurs liability for payment of tax [OR ROYALTY] based on the person's 11 activity that is the basis of the claim of the exploration incentive credit; or 12 (2) consecutive periods. 13 * Sec. 7. AS 43 is amended by adding a new chapter to read: 14 Chapter 22. Individual Income Tax. 15 Sec. 43.22.010. Tax on individuals. (a) A tax is imposed for each calendar 16 year or fraction of a calendar year on every 17 (1) resident individual; and 18 (2) nonresident individual with income from a source in the state. 19 (b) The tax under this section is equal to 20 (1) for a resident individual, six percent of the taxpayer's total federal 21 income tax; 22 (2) for a nonresident individual, six percent of the taxpayer's total 23 federal income tax payable on the amount of the taxpayer's income that is from a 24 source in the state. 25 (c) In this section, "federal income tax" means the total tax payable to the 26 federal government, as reported by the taxpayer on a federal individual income tax 27 return, including alternate minimum tax and other taxes imposed by the Internal 28 Revenue Code, net of nonrefundable credits allowed against a liability and net of 29 federal tax attributable to income from stocks and obligations of the United States 30 government exempt from taxation by the state under 31 U.S.C. 3124. 31 Sec. 43.22.020. Credit for taxes paid. (a) A resident is entitled to a credit
01 against the tax liability under this chapter for the amount of tax paid to other states, 02 territories, or possessions of the United States on income derived from sources in 03 those jurisdictions that is also subject to tax in this chapter. 04 (b) The claim for credit under (a) of this section may include tax paid by an S 05 corporation or partnership on behalf of the individual, based on that individual's share 06 of income derived in the other jurisdiction; in this subsection, "S corporation" has the 07 meaning given in 26 U.S.C. 1361. 08 (c) The credit allowed under this section may not exceed an amount equal to 09 the tax imposed under this chapter multiplied by a ratio equal to federal adjusted gross 10 income derived from sources in the other jurisdiction divided by total federal adjusted 11 gross income. 12 (d) The application of the tax credit provided under this section may not 13 operate to reduce the tax payable under this chapter to an amount less than would have 14 been payable if the income from the other state was disregarded. 15 Sec. 43.22.030. Returns and payment of taxes. (a) An individual required to 16 make a return under the provisions of the Internal Revenue Code shall file with the 17 department a return setting out 18 (1) the amount of tax due under this chapter; and 19 (2) other information for the purpose of carrying out the provisions of 20 this chapter that the department requires. 21 (b) The return must either be on oath or contain a written declaration that it is 22 made under penalty of perjury, and the department shall prescribe forms accordingly. 23 (c) The total amount of tax imposed by this chapter is due and payable to the 24 department at the same time and in the same manner as the tax payable to the United 25 States Internal Revenue Service. 26 (d) A taxpayer, upon request by the department, shall furnish to the 27 department a true and correct copy of the tax return that the taxpayer has filed with the 28 United States Internal Revenue Service. Every taxpayer shall notify the department in 29 writing of an alteration in, or modification of, the taxpayer's federal income tax return 30 and of a recomputation of tax or determination of deficiency, whether with or without 31 assessment. A full statement of the facts must accompany this notice. The taxpayer
01 shall file the notice within 60 days after the final determination of the alteration, 02 modification, recomputation, or deficiency, and the taxpayer shall pay any additional 03 tax due under this chapter at that time. For purposes of this subsection, a final 04 determination means the time that an amended federal return is filed or a notice of 05 deficiency or an assessment is mailed to the taxpayer by the Internal Revenue Service, 06 and the taxpayer has exhausted rights of appeal under federal law. 07 (e) The department may credit or refund overpayments of taxes, taxes 08 erroneously or illegally assessed or collected, penalties collected without authority, 09 and taxes that are found unjustly assessed or excessive in amount, or otherwise 10 wrongfully collected. The department shall set limitations, specify the manner in 11 which claims for credits or refunds are made, and give notice of allowance or 12 disallowance. When a refund is allowed to a taxpayer, it may be paid out of the 13 general fund on a warrant issued under a voucher approved by the department. 14 Sec. 43.22.040. Income from sources in the state. (a) For purposes of 15 AS 43.22.010(a), income from a source in the state includes 16 (1) compensation for personal services rendered in the state; 17 (2) salary or wages earned in the state; 18 (3) income from real or tangible personal property located in the state; 19 (4) income from stocks, bonds, notes, bank deposits, and other 20 intangible personal property having a taxable or business situs in the state; however, 21 the receipt of interest income from intangible property in the state does not alone 22 establish a taxable or business situs in the state; 23 (5) rentals and royalties for the use of or for the privilege of using, in 24 the state, patents, copyrights, secret processes and formulas, good will, marks, trade 25 brands, franchises, and other property having a taxable or business situs in the state; 26 (6) income of whatever nature from a source with a taxable or business 27 situs in the state. 28 (b) In (a) of this section, income is from a source with a taxable or business 29 situs in the state if it is attributed to or derived from 30 (1) business facilities or property in the state; 31 (2) business, farming, or fishing activities in the state;
01 (3) conducting in the state the management or investment function for 02 intangible property; 03 (4) a partnership, limited liability company, estate, or trust conducting 04 business activities in the state; 05 (5) a corporation transacting business activities in the state that has 06 elected to file federal returns as a subchapter under 26 U.S.C. 1362 (Internal Revenue 07 Code); 08 (6) any other activity from which income is received, realized, or 09 derived in the state. 10 (c) For purposes of (a) of this section, if a business, trade, or profession is 11 carried on partly inside and partly outside the state, other than the rendering of purely 12 personal services by an individual, the income from sources in the state shall be 13 determined as provided in AS 43.19. 14 Sec. 43.22.050. Tax withholding on wages of individuals. (a) Every 15 employer making payment of wages, salaries, or crew shares 16 (1) shall deduct and withhold an amount of tax computed in a manner 17 to approximate the amount of tax due on those wages, salaries, or crew shares under 18 this chapter for that calendar year; 19 (2) shall remit the tax withheld to the department accompanied by a 20 return on a form prescribed by the department at the times required by the department 21 by regulation; 22 (3) is liable for the payment of the tax required to be deducted and 23 withheld under this section but is not liable to any individual for the amount of the 24 payment; and 25 (4) shall furnish to the employee on or before January 31 of the 26 succeeding year, or not later than 30 days after a request by the employee after the 27 employee's termination if the 30-day period ends before January 31, a written 28 statement on a form prescribed by the department showing the 29 (A) name and taxpayer identification number of the employer; 30 (B) name and social security number of the employee; 31 (C) total amount of wages or salary for the calendar year; and
01 (D) total amount deducted and withheld as tax under this 02 chapter for the calendar year. 03 (b) The department shall publish the rate of withholding required by this 04 section. 05 (c) In this section, 06 (1) "employee" includes an individual who receives compensation on a 07 crew share basis in connection with a commercial fishing activity; 08 (2) "employer" includes a person who pays compensation to an 09 individual on a crew share basis in connection with a commercial fishing activity. 10 Sec. 43.22.060. Administration. The department shall prescribe all necessary 11 forms and adopt regulations to implement and interpret this chapter, including 12 regulations for the online filing and payment of tax due under this chapter. The 13 department may incorporate into the regulations provisions of the Internal Revenue 14 Code that are necessary or useful to the administration of this chapter. 15 Sec. 43.22.190. Definitions. In this chapter, 16 (1) "domiciled" means established in a true principal permanent home 17 to which the individual has the intention of returning whenever absent; 18 (2) "individual" means a natural person, married or unmarried, adult or 19 minor, subject to payment of income tax under 26 U.S.C. (Internal Revenue Code); 20 (3) "Internal Revenue Code" means the Internal Revenue Code of the 21 United States (26 U.S.C.) as the code exists now or as hereafter amended, as the code 22 and amendments apply to the normal taxes and surtax on net incomes, which 23 amendments are operative for the purposes of this chapter as of the time they became 24 operative or will become operative under federal law; 25 (4) "nonresident" means an individual who is not a resident; 26 (5) "resident" means an individual who 27 (A) was domiciled in the state or resided in the state for the 28 entire calendar year; 29 (B) claims to be a resident of the state on the individual's 30 federal tax forms; 31 (C) receives a permanent fund dividend under AS 43.23;
01 (D) is registered to vote under AS 15; or 02 (E) received a resident fishing, hunting, or trapping license 03 during the calendar year under AS 16; 04 (6) "taxpayer" means a person subject to a tax imposed by this chapter. 05 * Sec. 8. AS 43.40.010(a) is amended to read: 06 (a) In addition to the surcharge levied under AS 43.40.005, there is levied a 07 tax of 16 [EIGHT] cents a gallon on all motor fuel sold or otherwise transferred within 08 the state, except that 09 (1) the tax on aviation gasoline is seven [FOUR AND SEVEN- 10 TENTHS] cents a gallon; 11 (2) the tax on motor fuel used in and on watercraft of all descriptions is 12 10 [FIVE] cents a gallon; 13 (3) the tax on all aviation fuel other than gasoline is six and one-half 14 [THREE AND TWO-TENTHS] cents a gallon; and 15 (4) the tax rate on motor fuel that is blended with alcohol is the same 16 tax rate a gallon as other motor fuel; however, in an area and during the months in 17 which fuel containing alcohol is required to be sold, transferred, or used in an effort to 18 attain air quality standards for carbon monoxide as required by federal or state law or 19 regulation, the tax rate on motor fuel that is blended with alcohol is six cents a gallon 20 less than the tax on other motor fuel not described in (1) - (3) of this subsection. 21 * Sec. 9. AS 43.40.010(b) is amended to read: 22 (b) In addition to the surcharge levied under AS 43.40.005, there is levied a 23 tax of 16 [EIGHT] cents a gallon on all motor fuel consumed by a user, except that 24 (1) the tax on aviation gasoline consumed is seven [FOUR AND 25 SEVEN-TENTHS] cents a gallon; 26 (2) the tax on motor fuel used in and on watercraft of all descriptions is 27 10 [FIVE] cents a gallon; 28 (3) the tax on all aviation fuel other than gasoline is six and one-half 29 [THREE AND TWO-TENTHS] cents a gallon; and 30 (4) the tax rate on motor fuel that is blended with alcohol is the same 31 tax rate a gallon as other motor fuel; however, in an area and during the months in
01 which fuel containing alcohol is required to be sold, transferred, or used in an effort to 02 attain air quality standards for carbon monoxide as required by federal or state law or 03 regulation, the tax rate on motor fuel that is blended with alcohol is six cents a gallon 04 less than the tax on other motor fuel not described in (1) - (3) of this subsection. 05 * Sec. 10. AS 43.40.030(a) is amended to read: 06 (a) Except as specified in AS 43.40.010(j), a person who uses motor fuel to 07 operate an internal combustion engine is entitled to a motor fuel tax refund of 12 [SIX] 08 cents a gallon if 09 (1) the tax on the motor fuel has been paid; 10 (2) the motor fuel is not aviation fuel, or motor fuel used in or on 11 watercraft; and 12 (3) the internal combustion engine is not used in or in conjunction with 13 a motor vehicle licensed to be operated on public ways. 14 * Sec. 11. AS 43.50.150(c) is amended to read: 15 (c) The department may enter into an agreement with a municipality that 16 imposes a tax on cigarettes, electronic smoking products, or other tobacco products 17 for the purpose of jointly auditing a person liable for a tax under AS 43.50.010 - 18 43.50.390 and the municipal tax on cigarettes, electronic smoking products, or other 19 tobacco products. 20 * Sec. 12. AS 43.50.170 is amended by adding a new paragraph to read: 21 (13) "electronic smoking product" has the meaning given in 22 AS 43.50.390. 23 * Sec. 13. AS 43.50.190(a) is amended to read: 24 (a) There is levied an excise tax on each cigarette imported or acquired in this 25 state of 112 [, 26 (1) AFTER DECEMBER 31, 2004, BUT BEFORE JULY 1, 2006, 42 27 MILLS; 28 (2) AFTER JUNE 30, 2006, BUT BEFORE JULY 1, 2007, 52 29 MILLS; 30 (3) AFTER JUNE 30, 2007, 62] mills. 31 * Sec. 14. AS 43.50.300 is amended to read:
01 Sec. 43.50.300. Excise tax levied. An excise tax is levied on tobacco products 02 in the state at the rate of 100 [75] percent of the wholesale price of the tobacco 03 products. The tax is levied when a person 04 (1) brings, or causes to be brought, a tobacco product into the state 05 from outside the state for sale; 06 (2) makes, manufactures, or fabricates a tobacco product in the state 07 for sale in the state; or 08 (3) ships or transports a tobacco product to a retailer in the state for 09 sale by the retailer. 10 * Sec. 15. AS 43.50 is amended by adding a new section to read: 11 Sec. 43.50.305. Electronic smoking products excise tax; labeling. (a) An 12 excise tax is levied on electronic smoking products in the state at the rate of 75 percent 13 of the wholesale price of the electronic smoking product. The tax is levied when a 14 person 15 (1) brings, or causes to be brought, an electronic smoking product into 16 the state from outside the state for sale; 17 (2) makes, manufactures, or fabricates an electronic smoking product 18 in the state for sale in the state; or 19 (3) ships or transports a tobacco product to a retailer in the state for 20 sale by the retailer. 21 (b) An electronic smoking product sold in the state that contains nicotine must 22 be prominently labeled "CONTAINS NICOTINE." 23 * Sec. 16. AS 43.50.310(b) is amended to read: 24 (b) The tax does not apply to a tobacco product or electronic smoking 25 product if the United States Constitution or other federal laws prohibit the levying of 26 the tax on the product by the state. 27 * Sec. 17. AS 43.50.320(a) is amended to read: 28 (a) Except as provided in (g) of this section, a person must be licensed by the 29 department if the person engages in business as a distributor for a tobacco product or 30 electronic smoking product that is subject to the tax. 31 * Sec. 18. AS 43.50.330(a) is amended to read:
01 (a) On or before the last day of each calendar month, a licensee shall file a 02 return with the department. The return must state the number or amount of tobacco 03 products or electronic smoking products sold by the licensee during the preceding 04 calendar month, the selling price of the tobacco products or electronic smoking 05 products, and the amount of tax imposed on the tobacco products or electronic 06 smoking products. 07 * Sec. 19. AS 43.50.335 is amended to read: 08 Sec. AS 43.50.335. Tax credits and refunds. The department shall adopt 09 procedures for a refund or credit to a licensee of the tax paid for tobacco products or 10 electronic smoking products that have become unfit for sale, are destroyed, or are 11 returned to the manufacturer for credit or replacement if the licensee provides proof 12 acceptable to the department that the tobacco products or electronic smoking 13 products have not been and will not be consumed in this state. 14 * Sec. 20. AS 43.50.340 is amended to read: 15 Sec. 43.50.340. Records. A licensee shall keep a complete and accurate record 16 of all tobacco products or electronic smoking products of the licensee subject to the 17 tax, including purchase prices, sales prices, the names and addresses of the sellers and 18 the purchasers, the dates of delivery, the quantities of tobacco products or electronic 19 smoking products, and the trade names and brands. Statements and records required 20 by this section must be in the form prescribed by the department, preserved for three 21 years, and available for inspection upon demand by the department. 22 * Sec. 21. AS 43.50.390(4) is amended to read: 23 (4) "tobacco product" 24 (A) means 25 (i) [(A)] a cigar; 26 (ii) [(B)] a cheroot; 27 (iii) [(C)] a stogie; 28 (iv) [(D)] a perique; 29 (v) [(E)] snuff and snuff flour; 30 (vi) [(F)] smoking tobacco, including granulated, plug- 31 cut, crimp-cut, ready-rubbed, and any form of tobacco suitable for
01 smoking in a pipe or cigarette; 02 (vii) [(G)] chewing tobacco, including cavendish, twist, 03 plug, scrap, and tobacco suitable for chewing; or 04 (viii) [(H)] an article or product made of tobacco or a 05 tobacco substitute, but not including a cigarette as defined in 06 AS 43.50.170; 07 (B) does not include a product that has been approved by 08 the United States Food and Drug Administration for sale as a smoking 09 cessation product, tobacco dependence product, or modified risk tobacco 10 product; 11 * Sec. 22. AS 43.50.390(5) is amended to read: 12 (5) "wholesale price" means, for a tobacco product or electronic 13 smoking product 14 (A) acquired from a manufacturer, the gross invoice 15 [ESTABLISHED] price, including all federal excise taxes, at [FOR] which 16 the [A] manufacturer sells a tobacco product or electronic smoking product 17 to an unaffiliated [A] distributor after a deduction of a trade discount or other 18 reduction received by the distributor [FOR QUANTITY OR CASH IF THE 19 MANUFACTURER'S ESTABLISHED PRICE IS ADEQUATELY 20 SUPPORTED BY BONA FIDE ARM'S LENGTH SALES AS 21 DETERMINED BY THE DEPARTMENT]; or 22 (B) not acquired from a manufacturer, the gross invoice 23 price, including all federal excise taxes, after a deduction of a trade 24 discount or other reduction [AS DETERMINED BY THE DEPARTMENT, 25 FOR WHICH TOBACCO PRODUCTS OF COMPARABLE RETAIL PRICE 26 ARE SOLD TO DISTRIBUTORS IN THE ORDINARY COURSE OF 27 TRADE IF THE MANUFACTURER'S ESTABLISHED PRICE DOES NOT 28 MEET THE STANDARDS OF (A) OF THIS PARAGRAPH]. 29 * Sec. 23. AS 43.50.390 is amended by adding a new paragraph to read: 30 (6) "electronic smoking product" 31 (A) means a component, solution, vapor product, or other
01 related product of an electronic cigarette, electronic cigar, electronic cigarillo, 02 electronic pipe, or other similar product that is manufactured and sold for the 03 purpose of being aerosolized to deliver nicotine to the person inhaling; if the 04 product is sold as a disposable integrated unit containing a power source and 05 delivery system, or as a kit containing a refillable electronic smoking system 06 and power source, the entire unit shall be considered an electronic smoking 07 product for the purposes of this definition; 08 (B) does not include a 09 (i) product that is subject to taxation under 10 AS 43.61.010 - 43.61.050 that does not contain nicotine; 11 (ii) drug, product, or combination product approved for 12 sale by the United States Food and Drug Administration, as those terms 13 are defined in 21 U.S.C. 301-392 (Food, Drug, and Cosmetic Act); or 14 (iii) product that has been approved by the United 15 States Food and Drug Administration for sale as a smoking cessation 16 product, tobacco dependence product, or modified risk tobacco product. 17 * Sec. 24. AS 43.60.010(a) is amended to read: 18 (a) Except as provided in (c) of this section, every brewer, distiller, bottler, 19 jobber, retailer, wholesaler, or manufacturer who sells alcoholic beverages in the state 20 or who consigns shipments of alcoholic beverages into the state, whether or not the 21 alcoholic beverages are brewed, distilled, bottled, or manufactured in the state, shall 22 pay on all malt beverages (alcoholic content of one percent or more by volume), 23 wines, and hard or distilled alcoholic beverages, the following taxes: 24 (1) malt beverages at the rate of $2.14 [$1.07] a gallon or fraction of a 25 gallon; 26 (2) cider with at least 0.5 percent alcohol by volume but not more than 27 seven percent alcohol by volume, at the rate of $2.14 [$1.07] a gallon or fraction of a 28 gallon; 29 (3) wine or other beverages, other than beverages described in (1) or 30 (2) of this subsection, of 21 percent alcohol by volume or less, at the rate of $5 [$2.50] 31 a gallon or fraction of a gallon; and
01 (4) other beverages having a content of more than 21 percent alcohol 02 by volume at the rate of $25.60 [$12.80] a gallon. 03 * Sec. 25. AS 43.60.010(c) is amended to read: 04 (c) A brewer shall pay a tax at the rate of 70 [35] cents a gallon on sales of the 05 first 60,000 barrels of beer sold in the state each fiscal year beginning July 1, 2001, for 06 beer produced in the United States if the producing brewery meets the qualifications of 07 26 U.S.C. 5051(a)(2). To qualify for the tax rate under this subsection, the brewer 08 must file with the department a copy of an Alcohol and Tobacco Tax and Trade 09 Bureau acknowledged copy of the brewer's notice of intent to pay reduced rate of tax 10 required under 27 C.F.R. 25.167 for the calendar year in which the fiscal year begins 11 for which the partial exemption is sought. If proof of eligibility is not received by the 12 department before June 1, the tax rate under this subsection does not apply until the 13 first day of the second month after the month the notice is received by the department. 14 For purposes of applying this subsection, a barrel of beer may contain not more than 15 31 gallons. 16 * Sec. 26. AS 43.60.040(a) is amended to read: 17 (a) Each brewer, distiller, bottler, jobber, wholesaler, or manufacturer is 18 primarily liable for the payment of the excise taxes on alcoholic beverages sold, and 19 shall furnish a good and sufficient surety bond in an amount as determined by [OF 20 $25,000 PAYABLE TO] the department and approved by the Department of Law. If a 21 licensee [WHOLESALER] fails to pay the tax to the state the licensee 22 [WHOLESALER] forfeits the bond and the licensee's [WHOLESALER'S] license 23 shall be revoked. The department, in its discretion, may issue permits in place of 24 bonds to resident holders of wholesale, malt beverage, and wine licenses doing 25 business wholly in the state who pay the tax before shipment. 26 * Sec. 27. AS 43.61.020(a) is amended to read: 27 (a) Each marijuana cultivation facility shall file an electronic return with 28 [SEND A STATEMENT BY MAIL OR ELECTRONICALLY] the department on or 29 before the last day of each calendar month. The electronic return shall be filed in a 30 manner prescribed by the department. The return [STATEMENT] must contain an 31 account of the amount of marijuana sold or transferred to retail marijuana stores and
01 marijuana product manufacturing facilities in the state during the preceding month, 02 setting out 03 (1) the total number of ounces, including fractional ounces, sold or 04 transferred; 05 (2) the names and Alaska address of each buyer and transferee; and 06 (3) the weight of marijuana sold or transferred to the respective buyers 07 or transferees. 08 * Sec. 28. AS 43.61 is amended by adding new sections to read: 09 Sec. 43.61.040. Tax for excess marijuana. A person who is not registered 10 under AS 17.38 and who is found to be in possession of marijuana plants in excess of 11 the amount of marijuana plants authorized for personal use in AS 17.38.020(2) is 12 subject to the tax on the marijuana plants possessed in excess of the amount authorized 13 for use in AS 17.38.020. The tax due under this section is $50 for each ounce or partial 14 ounce of marijuana possessed. When determining the weight of marijuana for 15 purposes of this section, the department shall use the aggregate weight calculated 16 under AS 11.71.080. 17 Sec. 43.61.050. Administration and enforcement of tax. (a) Each marijuana 18 cultivation facility is primarily liable for the payment of the excise taxes on marijuana 19 sold and shall furnish a cash or surety bond of $5,000, payable to the department and 20 approved by the Department of Law. If a marijuana cultivation facility fails to pay the 21 tax to the state, the marijuana cultivation facility forfeits the bond, and the Marijuana 22 Control Board shall suspend the marijuana cultivation facility's license until payment 23 is made. 24 (b) Upon receipt of the bond and its subsequent approval, the department shall 25 notify the Marijuana Control Board that the marijuana cultivation facility has met the 26 bond requirement. The Marijuana Control Board may not issue a license under 27 AS 17.38 unless the department has received and the Department of Law has approved 28 the bond. 29 (c) A marijuana product manufacturing facility or retail marijuana store is 30 secondarily liable for the taxes on marijuana that is sold by or to the marijuana product 31 manufacturing facility or retail marijuana store. If requested by the department, the
01 marijuana product manufacturing facility or retail marijuana store shall provide the 02 department with proof that the taxes have been paid on the marijuana inventory in the 03 possession of the marijuana product manufacturing facility or retail marijuana store. 04 (d) The department may examine the books, papers, records, or memoranda of 05 a person growing, selling, receiving, storing, refining, or processing marijuana. A 06 person growing, selling, receiving, storing, refining, or processing marijuana shall 07 preserve all books, papers, records, or memoranda for at least three years and shall 08 provide the books, papers, records, or memoranda for inspection when demanded by 09 the department. 10 * Sec. 29. AS 43.65.010(a) is amended to read: 11 (a) A person prosecuting or attempting to prosecute, or engaging in the 12 business of mining in the state shall obtain a license from the department. All new 13 mining operations are exempt from the tax levied by this chapter for two [THREE 14 AND ONE-HALF] years after production begins. 15 * Sec. 30. AS 43.65.010(c) is amended to read: 16 (c) The license tax on mining is as follows: on [UPON] the net income of the 17 taxpayer from the property in the state, computed with allowable depletion, plus 18 royalty received in connection with mining property in the state 19 over $40,000 and not over $50,000 ............................................................... 3 percent 20 over $50,000 and not over $100,000 ......................................................... $1,500 plus 21 5 percent of the excess over $50,000 22 over $100,000 ............................................................................................. $4,000 23 9 [7] percent of the excess over $100,000. 24 * Sec. 31. AS 43.65.030 is amended to read: 25 Sec. 43.65.030. Applications and [APPLICATION FOR] renewals; fees. 26 The fee for a mining license and for each renewal is $50. Application for renewal of 27 a mining license shall be made before January 1 [MAY 1] of each year. 28 * Sec. 32. AS 43.75.015(a) is amended to read: 29 (a) A person engaged in a fisheries business is liable for and shall pay the tax 30 levied by this section on the value of each of the following fisheries resources 31 processed during the year at the rate set out after each:
01 (1) salmon canned at a shore-based fisheries business - five [FOUR] 02 and one-half percent; 03 (2) salmon processed by a shore-based fisheries business, except 04 salmon for which the tax is due under (1) of this subsection, and all other fisheries 05 resources processed by a shore-based fisheries business - four [THREE] percent; 06 (3) fisheries resources processed by a floating fisheries business - six 07 [FIVE] percent. 08 * Sec. 33. AS 43.75.015(d) is amended to read: 09 (d) Instead of the taxes levied under (a) or (b) of this section, a person who 10 processes a fishery resource under a direct marketing fisheries business license is 11 liable for and shall pay a tax equal to 12 (1) one percent of the value of the developing commercial fish species 13 processed during the year; and 14 (2) four [THREE] percent of the value of a commercial fish species 15 not subject to (1) of this subsection. 16 * Sec. 34. AS 43.75.030(b) is amended to read: 17 (b) The return shall be made on a [THE BASIS OF THE] calendar year basis 18 and submitted to the department [AT JUNEAU] before April 1 after the close of the 19 calendar year. 20 * Sec. 35. AS 43.75.130(a) is amended to read: 21 (a) The amount of tax revenue equal to one percent of the value of each 22 fishery taxed under this chapter shall be deposited into the general fund. Except 23 as provided in (d) of this section, and not including the revenue equal to one 24 percent of the value of each fishery taxed under this section deposited in the 25 general fund, the commissioner shall pay 26 (1) to each unified municipality and to each city located in the 27 unorganized borough, 50 percent of the amount of tax revenue collected in the 28 municipality from taxes levied under this chapter; 29 (2) to each city located within a borough, 25 percent of the amount of 30 tax revenue collected in the city from taxes levied under this chapter; and 31 (3) to each borough
01 (A) 50 percent of the amount of tax revenue collected in the 02 area of the borough outside cities from taxes levied under this chapter; and 03 (B) 25 percent of the amount of tax revenue collected in cities 04 located within the borough from taxes levied under this chapter. 05 * Sec. 36. AS 43.77.010 is amended to read: 06 Sec. 43.77.010. Landing tax. A person who engages or attempts to engage in a 07 floating fisheries business in the state and who owns a fishery resource that is not 08 subject to AS 43.75 but that is brought into the jurisdiction of, and first landed in, this 09 state is liable for and shall pay a landing tax on the value of the fishery resource. The 10 amount of the landing tax is 11 (1) for a developing commercial fish species, as defined under 12 AS 43.75.290, one percent of the value of the fishery resource at the place of landing; 13 (2) for a fish species other than a developing commercial fish species, 14 four [THREE] percent of the value of the fishery resource at the place of the landing. 15 * Sec. 37. AS 43.77.060(a) is amended to read: 16 (a) The amount of tax revenue equal to one percent of the value of each 17 fishery taxed under this chapter shall be deposited into the general fund. Subject 18 to appropriation by the legislature and except as provided in (b) of this section, and 19 not including the revenue equal to one percent of the value of each fishery taxed 20 under this section deposited in the general fund, the commissioner shall pay to each 21 (1) unified municipality and to each city located in the unorganized 22 borough, 50 percent of the amount of tax revenue collected from taxes levied under 23 this chapter on the fishery resource landed in the municipality and accounted for under 24 AS 43.77.050(b); 25 (2) city located within a borough, 25 percent of the amount of the tax 26 revenue collected from taxes levied under this chapter on fishery resources landed in 27 the city and accounted for under AS 43.77.050(b); and 28 (3) borough 29 (A) 50 percent of the amount of the tax revenue collected from 30 taxes levied under this chapter on fishery resources landed in the area of the 31 borough outside cities and accounted for under AS 43.77.050(b); and
01 (B) 25 percent of the amount of the tax revenue collected from 02 taxes levied under this chapter on fishery resources landed in cities located 03 within the borough and accounted for under AS 43.77.050(b). 04 * Sec. 38. AS 43.77.060(b) is amended to read: 05 (b) The amount of tax revenue equal to one percent of the value of each 06 fishery taxed under this chapter shall be deposited into the general fund. 07 Notwithstanding the provisions of (a)(2) and (a)(3)(B) of this section, and subject to 08 appropriation by the legislature, and not including the revenue equal to one percent 09 of the value of each fishery taxed under this section deposited in the general fund, 10 the commissioner shall pay to each 11 (1) city that is located in a borough incorporated after January 1, 1994, 12 the following percentages of the tax revenue collected from taxes levied under this 13 chapter on fishery resources landed in the city and accounted for under 14 AS 43.77.050(b): 15 (A) 45 percent of the tax revenue collected during the calendar 16 year in which the borough is incorporated; 17 (B) 40 percent of the tax revenue collected during the first 18 calendar year after the calendar year in which the borough is incorporated; 19 (C) 35 percent of the tax revenue collected during the second 20 calendar year after the calendar year in which the borough is incorporated; and 21 (D) 30 percent of the tax revenue collected during the third 22 calendar year after the calendar year in which the borough is incorporated; and 23 (2) borough that is incorporated after January 1, 1994, the following 24 percentages of the tax revenue collected from taxes levied under this chapter on 25 fishery resources landed in the cities located within the borough and accounted for 26 under AS 43.77.050(b): 27 (A) five percent of the tax revenue collected during the 28 calendar year in which the borough is incorporated; 29 (B) 10 percent of the tax revenue collected during the first 30 calendar year after the calendar year in which the borough is incorporated; 31 (C) 15 percent of the tax revenue collected during the second
01 calendar year after the calendar year in which the borough is incorporated; and 02 (D) 20 percent of the tax revenue collected during the third 03 calendar year after the calendar year in which the borough is incorporated. 04 * Sec. 39. The uncodified law of the State of Alaska enacted in sec. 4, ch. 48, SLA 1997, as 05 repealed and reenacted by sec. 42, ch.1, FSSLA 2004, is repealed and reenacted to read: 06 Sec. 4. AS 43.50.190(a) is repealed and reenacted to read: 07 (a) There is levied an excise tax on each cigarette imported or acquired in this 08 state, 09 (1) after September 30, 1997, but before January 1, 2005, 47.5 mills; 10 (2) after December 31, 2004, but before July 1, 2006, 77.5 mills; 11 (3) after June 30, 2006, but before July 1, 2007, 87.5 mills; 12 (4) after June 30, 2007, but before July 1, 2016, 97.5 mills; 13 (5) after June 30, 2016, 147.5 mills. 14 * Sec. 40. AS 43.05.085; AS 43.20.012(b), and 43.20.013 are repealed. 15 * Sec. 41. The uncodified law of the State of Alaska is amended by adding a new section to 16 read: 17 APPLICABILITY. (a) The changes to the applicability of the exploration incentive 18 credit made in AS 27.30.030(a) and (b), as amended by secs. 3 and 4 of this Act, 19 AS 27.30.040, as amended by sec. 5 of this Act, and AS 27.30.050, as amended by sec. 6 of 20 this Act, apply to a royalty payment period beginning on or after the effective date of sec. 3 of 21 this Act. 22 (b) AS 43.22.010 - 43.22.190, added by sec. 7 of this Act, apply to income received 23 on or after the effective date of sec. 7 of this Act. 24 (c) AS 43.40.010(a), as amended by sec. 8 of this Act, applies to motor fuel sold or 25 transferred in the state on or after the effective date of sec. 8 of this Act. 26 (d) AS 43.40.010(b), as amended by sec. 9 of this Act, applies to motor fuel 27 consumed by a user on or after the effective date of sec. 9 of this Act. 28 (e) AS 43.40.030(a), as amended by sec. 10 of this Act, applies to a motor fuel tax 29 refund on motor fuel used on or after the effective date of sec. 10 of this Act. 30 (f) AS 43.50.190(a), as amended by sec. 13 of this Act, and AS 43.50.300, as 31 amended by sec. 14 of this Act, apply to tobacco products sold on or after the effective date of
01 secs. 13 and 14 of this Act. 02 (g) AS 43.50.305, added by sec. 15 of this Act, applies to electronic smoking products 03 sold on or after the effective date of sec. 15 of this Act. 04 (h) AS 43.50.330(a), as amended by sec. 18 of this Act, applies to the first monthly 05 return submitted after the first full month after the effective date of sec. 18 of this Act. 06 (i) AS 43.60.010(a), as amended by sec. 24 of this Act, and AS 43.60.010(c), as 07 amended by sec. 25 of this Act, apply to alcoholic beverages sold on or after the effective date 08 of secs. 24 and 25 of this Act. 09 (j) AS 43.60.040(a), as amended by sec. 26 of this Act, applies to surety bonds on or 10 after the effective date of sec. 26 of this Act. 11 (k) AS 43.65.010(a), as amended by sec. 29 of this Act, applies to a mining operation 12 that begins production on or after the effective date of sec. 29 of this Act. 13 (l) AS 43.65.010(c), as amended by sec. 30 of this Act, applies to net income of the 14 taxpayer from property in the state during a taxable year that begins on or after the effective 15 date of sec. 30 of this Act. 16 (m) AS 43.75.015(a) and 43.75.015(d), as amended by sec. 32 and 33 of this Act, 17 apply to a fisheries resource processed on or after the effective date of secs. 32 and 33 of this 18 Act. 19 (n) AS 43.77.010, as amended by sec. 36 of this Act, applies to a fisheries resource 20 landed in the state on or after the effective date of sec. 36 of this Act. 21 * Sec. 42. The uncodified law of the State of Alaska is amended by adding a new section to 22 read: 23 APPLICABILITY. Notwithstanding AS 17.38.200, enacted by sec. 2 of this Act, the 24 Marijuana Control Board may approve the issuance of a marijuana cultivation facility license 25 to an applicant who submits a completed application on or after February 24, 2016, and before 26 the effective date of sec. 2 of this Act, provided that the cash or surety bond as required by 27 AS 43.61.050 enacted by sec. 28 of this Act is furnished and approved not later than 30 days 28 after the effective date of this Act. 29 * Sec. 43. The uncodified law of the State of Alaska is amended by adding a new section to 30 read: 31 TRANSITION. In administering the application of the exploration incentive credit
01 under AS 27.30, AS 27.30.030(b)(2), as that subsection read on June 30, 2016, applies to an 02 accounting under AS 27.30.030(b) for a person who began mining production before the 03 effective date of this Act. 04 * Sec. 44. The uncodified law of the State of Alaska is amended by adding a new section to 05 read: 06 TRANSITION: REGULATIONS. (a) The Alaska Commercial Fisheries Entry 07 Commission, the Department of Fish and Game, the Department of Revenue, the Department 08 of Natural Resources, and the Marijuana Control Board may adopt regulations necessary to 09 implement the changes made by this Act. The regulations take effect under AS 44.62 10 (Administrative Procedure Act), but not before the effective date of the law implemented by 11 the regulation. 12 * Sec. 45. The uncodified law of the State of Alaska is amended by adding a new section to 13 read: 14 RETROACTIVITY: REGULATIONS. Notwithstanding AS 44.62.240, if the 15 (1) Marijuana Control Board expressly designates in a regulation 16 implementing AS 17.38.200, added by sec. 2 of this Act, a regulation adopted by the 17 Marijuana Control Board to implement AS 17.38.200 may apply retroactively to February 24, 18 2016; 19 (2) Department of Revenue expressly designates in a regulation implementing 20 AS 43.61.50, enacted by sec. 28 of this Act, a regulation adopted by the Department of 21 Revenue to implement AS 43.61.050 may apply retroactively to February 24, 2016. 22 * Sec. 46. The uncodified law of the State of Alaska is amended by adding a new section to 23 read: 24 RETROACTIVITY. Sections 2 and 28 of this Act are retroactive to February 24, 25 2016. 26 * Sec. 47. Section 1 of this Act takes effect January 1, 2017. 27 * Sec. 48. Section 7 of this Act takes effect January 1, 2018. 28 * Sec. 49. Sections 2, 28, 44, and 45 of this Act take effect immediately under 29 AS 01.10.070(c). 30 * Sec. 50. Except as provided in secs. 47 - 49 of this Act, this Act takes effect July 1, 2016.