Legislature(2001 - 2002)
2002-05-02 House Journal
Full Journal pdf2002-05-02 House Journal Page 3309 HB 303 The Speaker stated that, without objection, the House would move down the calendar to: CS FOR HOUSE BILL NO. 303(FIN) "An Act relating to the levy and collection of a sales tax and a use tax and to levy and collection of municipal sales and use taxes; and providing for an effective date." CSHB 303(FIN), which was held in second reading and returned to the Rules Committee (page 2719), was again before the House. 2002-05-02 House Journal Page 3310 Representative James moved and asked unanimous consent that the House rescind its previous action in adopting CSHB 303(FIN) (page 2703). There being no objection, it was so ordered. Representative James moved and asked unanimous consent that the following committee substitute be adopted in lieu of the original bill: 2d CS FOR HOUSE BILL NO. 303(RLS) "An Act relating to taxation of individual income; and providing for an effective date." There being no objection, it was so ordered. Amendment No. 4 was offered by Representative Kohring: Page 1, line 1, following "income;" (title amendment): Insert "imposing an individual income tax, and repealing that tax;" Page 8, following line 6: Insert a new bill section to read: "* Sec. 5. AS 43.20.030(a) is amended to read: (a) If a [EVERY INDIVIDUAL, PARTNERSHIP, AND] corporation, or a partnership that has a corporation as a partner, is required to make a return under the provisions of the Internal Revenue Code, it shall file with the department, within 30 days after the federal return is required to be filed, a return setting out (1) the amount of tax due under this chapter, less [ALLOWABLE] credits [AND PAYMENTS] claimed against the tax; and (2) other information that the department requires for the purpose of carrying out the provisions of this chapter." Renumber the following bill sections accordingly. 2002-05-02 House Journal Page 3311 Page 8, following line 28: Insert a new bill section to read: "* Sec. 7. AS 43.20.030(d) is amended to read: (d) A taxpayer, upon request by the department, shall furnish to the department [FILE WITH THE TAXPAYER'S STATE RETURN] a true copy of the tax return that the taxpayer has filed with the United States Internal Revenue Service. Every taxpayer shall notify [FILE AN AMENDED RETURN WITH] the department in writing of any alteration in, or modification of, the taxpayer's federal income tax return and of a recomputation of tax or determination of deficiency, whether with or without assessment. A full statement of the facts must accompany this notice. The notice shall be filed [, AND REMIT ANY ADDITIONAL TAX AND INTEREST DUE,] within 60 days after the [A] final determination of the modification, recomputation, or deficiency, and the taxpayer shall pay the additional tax or penalty under this chapter [TAXPAYER'S FEDERAL TAX LIABILITY]. For purposes of this section [SUBSECTION], a final determination means the date that an amended federal return is filed or a notice of deficiency or an [, THE DATE A FEDERAL] assessment is mailed to [MADE, OR THE DATE THE RESTRICTIONS ON ASSESSMENT ARE WAIVED BY] the taxpayer by the Internal Revenue Service, except that in no event may there be a final determination for purposes of this section until the taxpayer has exhausted rights of appeal under federal law." Renumber the following bill sections accordingly. Page 9, following line 4: Insert a new bill section to read: "* Sec. 10. AS 43.20.031(c) is amended to read: (c) In computing the tax under this chapter, the taxpayer [A CORPORATION] is not entitled to deduct any taxes based on or measured by net income." Renumber the following bill sections accordingly. 2002-05-02 House Journal Page 3312 Page 10, following line 5: Insert a new bill section to read: "* Sec. 12. AS 43.20.040 is repealed and reenacted to read: Sec. 43.20.040. Income from sources in the state. (a) In this chapter, income from sources in the state includes (1) income from real or tangible personal property located in the state; (2) income of whatever nature from a business, trade or profession having a business situs in the state and compensation for services rendered in the state; (3) income from stocks, bonds, notes, bank deposits, and other intangible personal property having a taxable or business situs in the state; (4) rentals and royalties for the use of or for the privilege of using, in the state, patents, copyrights, secret processes and formulas, good will, marks, trade brands, franchises, and other property having a taxable or business situs in the state. (b) In this section, income is from a source having a taxable or business situs in the state if it is derived from (1) owning or operating business facilities or property in the state; (2) conducting business, farming, or fishing operations in the state; (3) a partnership which transacts business in the state; (4) a corporation which transacts business in the state which has elected to file federal returns under subchapter S of the Internal Revenue Code; (5) engaging in any other activity from which income is received, realized or derived in the state. (c) The receipt of income derived solely from interest earned on property in the state does not alone establish a taxable or business situs in the state." Renumber the following bill sections accordingly. Page 12, following line 2: Insert a new bill section to read: "* Sec. 17. AS 43.20.200(b) is amended to read: (b) The same period of limitation upon the assessment and collection of taxes imposed under this chapter and the same 2002-05-02 House Journal Page 3313 exceptions to it shall apply as provided in 26 U.S.C. 6501 - 6503 (Internal Revenue Code). In the case of additional tax due by reason of a modification, recomputation, or determination of deficiency in a taxpayer's federal income tax return, the period of limitation on assessment commences from the date that the notice [AMENDED RETURN] required in AS 43.20.030(d) is filed, and if no notice [AMENDED RETURN] is filed the tax may be assessed at any time." Renumber the following bill sections accordingly. Page 12, following line 10: Insert a new bill section to read: "* Sec. 20. AS 43.05.300; AS 43.20.009, 43.20.029, 43.20.030(h), 43.20.046, 43.20.171, 43.20.174, 43.20.340(12), 43.20.340(13), and 43.20.340(14) are repealed." Page 12, line 23: Delete "Section 16" Insert "Section 22" Page 12, following line 23: Insert a new bill section to read: "* Sec. 24. Sections 5, 7, 10, 12, 17, and 20 take effect January 1, 2008." Renumber the following bill section accordingly. Page 12, line 24: Delete "sec. 17" Insert "secs. 23 and 24" Representative Kohring moved and asked unanimous consent that Amendment No. 4 be adopted. Representative Whitaker objected. The question being: "Shall Amendment No. 4 be adopted?" The roll was taken with the following result: 2002-05-02 House Journal Page 3314 2d CSHB 303(RLS) Second Reading Amendment No. 4 YEAS: 11 NAYS: 26 EXCUSED: 1 ABSENT: 2 Yeas: Chenault, Coghill, Foster, Green, James, Kohring, Kott, Masek, Meyer, Mulder, Rokeberg Nays: Berkowitz, Bunde, Cissna, Crawford, Croft, Davies, Dyson, Fate, Guess, Halcro, Harris, Hayes, Hudson, Joule, Kapsner, Kerttula, Lancaster, Morgan, Moses, Murkowski, Porter, Scalzi, Stevens, Whitaker, Williams, Wilson Excused: Ogan Absent: Kookesh, McGuire And so, Amendment No. 4 was not adopted. Amendment No. 5 was offered by Representative Kohring: Page 12, lines 23 - 24: Delete all material and insert: "* Sec. 17. The uncodified law of the State of Alaska is amended by adding a new section to read: CONTINGENT EFFECT OF SECTIONS 1 - 16 OF THIS ACT. (a) Sections 1 - 16 of this Act do not take effect unless, at the next general election, a majority of the votes cast favors adoption of a state income tax under (b) of this section. (b) At the next general election, the lieutenant governor shall place before the qualified voters of the state a proposition in the following form: Q U E S T I O N Shall the provisions of ch. ___, SLA 2002, relating to the levy and collection of a statewide income tax become effective? YES [ ] NO [ ] In preparing the ballot, the lieutenant governor shall first enter the chapter number assigned to this Act. * Sec. 18. Section 17 of this Act takes effect immediately under AS 01.10.070(c). 2002-05-02 House Journal Page 3315 * Sec. 19. If, under sec. 17 of this Act, secs. 1 - 16 of this Act take effect, sec. 16 of this Act takes effect on the date of certification of the results of the next general election by the lieutenant governor. * Sec. 20. If, under sec. 17 of this Act, secs. 1 - 16 of this Act take effect, except as provided in secs. 18 and 19 of this Act, this Act takes effect January 1, 2003." Representative Kohring moved and asked unanimous consent that Amendment No. 5 be adopted. Representative Whitaker objected. Representative Croft placed a call of the House. The Speaker stated that the call was satisfied. The question being: "Shall Amendment No. 5 be adopted?" The roll was taken with the following result: 2d CSHB 303(RLS) Second Reading Amendment No. 5 YEAS: 10 NAYS: 29 EXCUSED: 1 ABSENT: 0 Yeas: Chenault, Coghill, Dyson, Foster, Green, James, Kohring, Masek, Meyer, Rokeberg Nays: Berkowitz, Bunde, Cissna, Crawford, Croft, Davies, Fate, Guess, Halcro, Harris, Hayes, Hudson, Joule, Kapsner, Kerttula, Kookesh, Kott, Lancaster, McGuire, Morgan, Moses, Mulder, Murkowski, Porter, Scalzi, Stevens, Whitaker, Williams, Wilson Excused: Ogan And so, Amendment No. 5 was not adopted. Amendment No. 6 was offered by Representative Rokeberg: Page 1, line 1, following "income" (title amendment): Insert ", and making this Act effective only if a version of HB 304, relating to distribution of income of the permanent fund, and 2002-05-02 House Journal Page 3316 a version of HB 225, relating to taxation of alcoholic beverages, are passed by the Twenty-Second Alaska State Legislature and become law" Page 12, following line 22: Insert a new bill section to read: "* Sec. 17. The uncodified law of the State of Alaska is amended by adding a new section to read: CONDITIONAL EFFECT. This Act takes effect only if a version of HB 304, relating to distribution of income of the permanent fund, and a version of HB 225, relating to taxation of alcoholic beverages, are passed by the Twenty-Second Alaska State Legislature and become law." Renumber the following bill sections accordingly. Page 12, line 24: Delete "sec. 17" Insert "sec. 18" Representative Rokeberg moved and asked unanimous consent that Amendment No. 6 be adopted. Representative Whitaker objected. Representative Berkowitz rose to a point of order regarding confining remarks to the bill before the body. The Speaker stated that the point was well taken and cautioned the other member to confine remarks to the bill. The question being: "Shall Amendment No. 6 be adopted?" The roll was taken with the following result: 2d CSHB 303(RLS) Second Reading Amendment No. 6 YEAS: 14 NAYS: 25 EXCUSED: 1 ABSENT: 0 2002-05-02 House Journal Page 3317 Yeas: Bunde, Chenault, Foster, Green, Harris, James, Kohring, Kott, Masek, Meyer, Morgan, Mulder, Rokeberg, Williams Nays: Berkowitz, Cissna, Coghill, Crawford, Croft, Davies, Dyson, Fate, Guess, Halcro, Hayes, Hudson, Joule, Kapsner, Kerttula, Kookesh, Lancaster, McGuire, Moses, Murkowski, Porter, Scalzi, Stevens, Whitaker, Wilson Excused: Ogan And so, Amendment No. 6 was not adopted. Representative Hayes placed a call of the House and lifted the call. Representative James moved and asked unanimous consent that 2d CSHB 303(RLS) be considered engrossed, advanced to third reading, and placed on final passage. There being no objection, it was so ordered. 2d CSHB 303(RLS) was read the third time. Representative Rokeberg moved and asked unanimous consent that 2d CSHB 303(RLS) be returned to second reading for the specific purpose of considering Amendment No. 7. There being no objection, it was so ordered. Amendment No. 7 was offered by Representative Rokeberg: Page 1, line 1, following "income;" (title amendment): Insert "relating to permanent fund dividends" Page 8, following line 6: Insert a new bill section to read: "* Sec. 5. AS 43.20.030(c) is amended to read: (c) Notwithstanding (a) of this section, the total amount of tax imposed by this chapter is due and payable to the department at the same time and in the same manner as the tax payable to the United States Internal Revenue Service; except that an individual's income taxes are due and payable on October 15 of the year in which the individual income tax return was required to be filed." 2002-05-02 House Journal Page 3318 Renumber the following bill sections accordingly. Page 12, following line 9: Insert new bill sections to read: "* Sec. 15. AS 43.23.011 is amended to read: Sec. 43.23.011. Application period. An application for a permanent fund dividend shall be filed during the period that begins January 2 and ends April 15 [MARCH 31] of that dividend year. * Sec. 16. AS 43.23 is amended by adding a new section to read: Sec. 43.23.018. Individual income taxes. (a) The commissioner shall include individual income tax return forms prepared under AS 43.20.030 in the permanent fund dividend application packet. (b) The department shall withhold from an individual's permanent fund dividend the individual income taxes owed by that individual under AS 43.20 for the previous calendar year and not already withheld by an employer under AS 43.20.171 or a pass-through entity under AS 43.20.174." Renumber the following bill sections accordingly. Page 12, line 23: Delete "Section 16" Insert "Section 19" Page 12, line 24: Delete "sec. 17" Insert "sec. 20" Representative Rokeberg moved and asked unanimous consent that Amendment No. 7 be adopted. Objection was heard. Representative James placed a call of the House on the bill. The Speaker stated that the call was satisfied. Representative Rokeberg moved and asked unanimous consent to withdraw Amendment No. 7. There being no objection, it was so ordered. 2002-05-02 House Journal Page 3319 The question being: "Shall 2d CSHB 303(RLS) pass the House?" The roll was taken with the following result: 2d CSHB 303(RLS) Third Reading Final Passage YEAS: 24 NAYS: 15 EXCUSED: 1 ABSENT: 0 Yeas: Berkowitz, Bunde, Cissna, Crawford, Croft, Davies, Fate, Green, Guess, Halcro, Hayes, Hudson, Joule, Kapsner, Kerttula, Kookesh, Lancaster, Moses, Murkowski, Porter, Scalzi, Stevens, Whitaker, Wilson Nays: Chenault, Coghill, Dyson, Foster, Harris, James, Kohring, Kott, Masek, McGuire, Meyer, Morgan, Mulder, Rokeberg, Williams Excused: Ogan And so, 2d CSHB 303(RLS) passed the House. Representative James moved the effective date clause. The question being: "Shall the effective date clause be adopted?" The roll was taken with the following result: 2d CSHB 303(RLS) Third Reading Effective Date YEAS: 34 NAYS: 5 EXCUSED: 1 ABSENT: 0 Yeas: Berkowitz, Bunde, Chenault, Cissna, Coghill, Crawford, Croft, Davies, Fate, Green, Guess, Halcro, Harris, Hayes, Hudson, James, Joule, Kapsner, Kerttula, Kookesh, Kott, Lancaster, McGuire, Morgan, Moses, Mulder, Murkowski, Porter, Rokeberg, Scalzi, Stevens, Whitaker, Williams, Wilson Nays: Dyson, Foster, Kohring, Masek, Meyer Excused: Ogan And so, the effective date clause was adopted. 2d CSHB 303(RLS) was referred to the Chief Clerk for engrossment.